Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

As Minister for Communications, Climate Action and Environment, I have responsibility for the postal sector, including the governance of An Post, to ensure that 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. Operational matters and the role of developing commercial strategies for An Post mails and retail businesses, including the post office network, are a matter for the board and management of An Post and are not matters in respect of which I, as Minister, have a statutory function. Consequently, measures to maintain, enhance and diversify the post office network are fundamentally a matter for An Post.

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. I was one of those who made a submission to the group. Following publication of the final report of the group in January 2016, two working groups were established to progress the recommendations of the report, namely, the network renewal implementation group, chaired by Mr. Bobby Kerr, and the post office hub working group, chaired by the then Minister of State, Deputy Michael Ring.

On foot of a reconfiguration of Departments in July last year, responsibility for the post office network transferred to the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs.  In March 2017, that Department published the final report of the post office hub working group, in which it was outlined that the Department intended pursuing the possible opportunities for services such as community banking and motor tax renewal for the network. Arrangements are in hand to reassign responsibility for the post office network to my Department in light of my overall responsibility for An Post.

The network renewal implementation group report was undertaken by Mr. Bobby Kerr for An Post and I understand the report is under consideration by the company.

It is Government policy that An Post remains a strong, viable company that is 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. However, the environment in which the post office operates is changing and the network needs to change to thrive, particularly with the move to digital transactions. This involves harnessing existing strengths, such as its trusted brand and the relationship of postmasters with individual communities, in order to build the network of the future.  The post office plays an important role in serving the needs of business and domestic customers alike and this is at the forefront of An Post's mandate.

Deputies will be aware that a fundamental review of An Post, including the post office network, which will identify the strategic changes and restructuring necessary to maintain the company on a sound financial footing, is ongoing. Naturally, the outcome of the review will impact on the extent to which the recommendations contained in the network renewal and post office hub reports can be implemented.

While decisions on restructuring An Post and the operation of the post office network are operational matters for the board and management of An Post, I am monitoring the position closely and hope that a pragmatic approach that will ensure the long-term sustainability of An Post and the post office network can be agreed. I had a number of meetings with the chief executive officer and chairman of the company and my officials also meet An Post management on a regular basis.  I have encouraged An Post to continue to work closely with all parties to find an agreed solution to the renewal of the network. The Government will be briefed once a definitive strategy has been agreed but until such time, it would not be appropriate for me to comment further on this process.

The post office network has evolved a social role in the widest meaning of the term, one which is highly valued by local communities. I envisage a strong future for the post office network by using its existing strengths to remain a significant player in the provision of Government, financial and other services. It has been long-standing policy that An Post remains in a position to compete in a liberalised market and continue to provide wide-ranging services to urban and rural communities.

I also want to be clear that there is no threat to the mails delivery or universal service obligation. An Post will continue to deliver post to every address every working day, which is a European Union requirement. The recent amended approach to pricing aims to ensure An Post can fulfil its obligation in this area.

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