Finian McGrath (Dublin Bay North, Independent) | Oireachtas source

I welcome the opportunity, on behalf of the Minister, Deputy Denis Naughten, to outline the position in regard to the post office network and I would like to thank Deputies Robert Troy and Eugene Murphy for raising this issue. The Minister sends his apologies. I accept the Deputies' point that many people are concerned and I will try to deal with the questions the Deputies have raised.

As Minister for Communications, Climate Action and Environment, Deputy Naughten, has responsibility for the postal sector, including the governance of An Post, to ensure the company is fully compliant with the code of practice for the governance of State bodies and the governance functions included in the statutory framework underpinning An Post. Day-to-day operational matters, including decisions in regard to the restructuring of An Post and the operation of the post office network, are matters for the board and the management of the company and not ones in which the Minister has any role or statutory function.

It is Government policy that An Post remains a strong, viable company, in a position to provide a high quality, nationwide postal service, and that it maintains a nationwide customer-focused network of post offices in the community. The post office network consists of just over 1,100 post offices nationwide. The post office network is a unique social, cultural and financial institution that makes a vital contribution to the Irish economy. That is the Government position. The post office is regarded as a dependable, trustworthy provider of choice to a vast number of our citizens for State services and other commercial transactions.

The Post Office Network Business Development Group was established at the end of 2014 by the then Minister for Communications, Energy and Natural Resources to explore the potential for commercial and additional Government services which could be transacted through the post office network. Following publication of the final report of this group in January 2016, two working groups were established to progress the recommendations of the report. These were the network renewal implementation group, chaired by Bobby Kerr, and the post office hub working group, chaired by the Minister of State, Deputy Michael Ring. On foot of the reconfiguration of Departments in July last, responsibility for the post office network transferred to the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs. Arrangements are now in hand to transfer responsibility for the post office network back to the Minister, Deputy Naughten's Department, under whose remit the corporate governance of An Post rests. Mr. Kerr submitted his report in December last. The final report of the post office hub working group was published in March and its recommendations will continue to be finalised between both Departments.

Colleagues in the House will be aware that An Post is operating in a very challenging environment and is facing a very difficult financial situation. The An Post AGM was held today and the company published its annual report and financial statements for 2016. The Minister has noted the fact An Post recorded an operating loss of €13.7 million for 2016. Clearly, this is a very significant loss and losses of this scale cannot be sustained.

An Post is carrying out a fundamental review of the company with a view to identifying the strategic changes and restructuring necessary to maintain the company on a sound financial footing, and that review is nearing completion. McKinsey is assisting An Post in this review but, as I stated, any decision in regard to the restructuring of An Post is a matter for the board and management of the company. The Minister, Deputy Naughten, is of course closely monitoring the situation and the Government will be briefed once a definitive strategy has been agreed. It would not be appropriate to comment further on this process at this time.

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