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

I have a lot of respect for postmasters and postmistresses across the country. I should declare an interest, namely, that my aunt in Galway who is also my godmother is the postmistress in Killimor. It is something in which I have a significant interest. I was one of five Members who bothered to make a submission on the Kerr report because I felt so strongly about the issue. Many services can be channelled through the post office network. The payment of motor tax is one very small example.

It is Government policy that An Post will remain a strong and viable company in a position to provide high quality nationwide postal services and maintain a nationwide customer-focused network of post offices in the community. However, the An Post Group lost €13.7 million in 2016, with the core mail business losing over €30 million.

As we know, the post office network comprises just over 1,100 outlets nationwide and reaches over 1.7 million customers. It is the Government's front-office provider of choice for many citizens and seen as a trusted, local, reliable and friendly service.

The four major strengths of An Post are its strong brand; the fact that the organisation is trusted by the public, in particular by older people; it is a nationwide network and that it guarantees delivery and collections five days a week, 52 weeks of the year. These strengths have been built on over the years by the postmasters and postmistresses, in conjunction with An Post. With its nationwide reach, the company brings vans and postal workers to every premises in Ireland five days a week, 52 weeks of the year. It is a valuable service, particularly in rural areas for rurally based businesses. To protect the network, I repealed the cap on the price of a stamp because, despite advice to the contrary, I believe the five-day a week service is an asset to be developed, not undermined. The Government is fully committed to having a sustainable post office network which it sees as a key piece of financial and social infrastructure for urban and rural areas. Part of the strength of the post office brand and one of its selling points is that it reaches all parts of the country and can be accessed by anyone. I expect this to be a cornerstone of any future strategy for the company and the post office network.

An Post has entered a period of structural change and decline in activity, mainly due to the impact of e-substitutions on mail volumes and post office transactions. The environment in which An Post operates is changing and the network needs to change in order to thrive, in particular given the move to digital transactions. This involves harnessing existing strengths such as the trusted brand and the relationship of postmasters and postmistresses with individual communities to build the network of the future. There will be opportunities to develop new or enhanced product lines for the network and I am keen to ensure this will include the concept of digital assist, whereby the post office would become a default option in the provision of Government services for those who are not comfortable in the digital space. The post office plays an important role in serving the needs of businesses and domestic customers alike and this is the forefront of the mandate of An Post. I am acutely conscious of the value placed by communities in rural and urban areas on services provided by post offices and determined to ensure the needs of those committees will be met. The Government remains fully committed to having a sustainable post office network which it sees as a key piece of economic and social infrastructure for rural and urban areas.

In response to the challenges it faces a strategic review of An Post, including the post office network, which will identify the changes and restructuring required to maintain the company on a sound financial footing was initiated and is nearing completion. All opportunities are being assessed by An Post in the context of the review. Until such time as it is finalised and assessed, it is not possible to comment further. The Government will be briefed once a definitive strategy has been agreed.

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