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

I propose to take Questions Nos. 37 and 40 together.

I wish to advise the House that the Government has today been briefed by me on the comprehensive strategic plan that An Post has prepared, the objective of which is to secure the long-term viability of both the post office and mails businesses and return the company to a sound financial footing.

The Government is fully supportive of An Post in its endeavours. Reflecting its commitment to sustaining a nationwide post office network and daily mails service, the Government has agreed to make available State funding of €30 million to enable An Post to move quickly in delivering on the vision of the plan, building on the momentum of actions taken this year. This funding will be provided in the form of a repayable long-term loan and is to be used to support the renewal of the post office network and the continued fulfilment of a five-day delivery service. To ensure its long-term success against the backdrop of an accelerated decline in mail volume and falling revenues, An Post is embarking on a significant transformation programme.

The current financial challenges facing An Post have been well documented and I have addressed this matter on several occasions in this House. They have arisen, in the main, from the decline in mail volumes and the move to electronic transactions in both the mail and post office network. This is a global trend and is not unique to the Irish postal service. I have taken a very proactive approach to An Post since becoming Minister for Communications, Climate Action and Environment. I acted quickly by introducing legislation to facilitate the repeal of the price cap mechanism when the drop in mail volumes accelerated in 2015 and 2016. This has resulted in an improved financial forecast for An Post for 2017 with a much lower level of losses now anticipated.

In response to the challenges facing the company, the board has overseen the preparation of a strategic plan for which it is ultimately responsible. It harnesses the company's existing strengths such as its nationwide reach, trusted brand and the relationship of postmasters with communities, both rural and urban. At the same time, An Post has recognised that it cannot and should not fight the digital agenda. It must be embraced and this is reflected in the plan, especially in the emphasis on growing the parcels business. For example, the company now offers Saturday and evening deliveries and has launched new product lines such as AddressPal and ReturnsPal, embracing the rising trend of online shopping. Enhanced banking services are becoming available through the post office network with the smart bank account. It is expected that further such opportunities will be available across the network, especially as high-speed broadband becomes widely available through the roll-out of the national broadband plan.

The Government has also committed to exploring the potential for extra Government business, including motor tax, to be channelled through the network. The local post office and local staff who deliver mail is still an important part of the fabric of local communities, especially in rural areas, and the Government recognises the importance of ensuring that this continues into the future.

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