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

The €30 million which has been put into the company has been ring-fenced for the five day a week universal postal service in order that it continues to every address in the country and to support and develop services in the post office network. The nationwide reach of the post office network makes it uniquely positioned to act as a gateway to Government. In addition to the existing range of Government business, such as social welfare payments, and Passport Express, a new pilot initiative called Digital Assist will use the local post office as a digital gateway for Government business such as motor tax. That will be rolled out in ten post offices in different parts of the country initially and is in line with the recommendations of the Kerr report. The proposed strategy for An Post involves it being split into two distinct business units, An Post mails and parcels and An Post retail. Efforts to improve profitability will be targeted through growth, pricing and cost reduction strategies and are aimed at establishing a sustainable, modern and vibrant network for the future, capable of adapting to the changing environment in which it operates.

There are concerns about the closure of post offices and it is something that also concerns me. I am advised that An Post has not made any definite decision on post office closures, but the move to electronic transactions has affected the post office network.

Overall activity levels are down by 15% since 2013 and annual payments to some post offices have reduced by up to 20%. These reductions mean that the income model is becoming unsustainable, especially for postmasters operating smaller post offices.

I am extremely conscious of the value placed on local post offices in towns and villages across the country. While it is accepted that, in light of the ongoing decline in activity, the network must be renewed, it is also important that this is done in a controlled and transparent manner. Changes to the footprint of the post offices network, where they occur, should be a consequence of the modernisation process as opposed to its objective. In this regard, a protocol will be put in place to manage the modernisation of the network and the impact of postmaster exits on the local community. It is expected that this protocol would have regard to existing contract arrangements and become a blueprint for decisions on the future of the network, including the opening of new post offices as well as managing the future of a post office where a postmaster decides to take a redundancy package or otherwise to exit the business.

The protocol must also make provision to ensure that the existing business is effectively transferred in order to support the remaining network and local businesses and should take account of recommendations made by Mr. Bobby Kerr in his report. This protocol will be agreed between An Post and the IPU and these negotiations will be supported by an external facilitator.

An Post is entering into a period of significant change but this change is critical to ensuring the long-term success of our national postal operator and a sustainable post office network. Doing nothing is simply not an option. To the credit of the board, management and employees of An Post, the strategic plan sets out a positive vision for the company, positions it for the digital age and aims to put the company in a position where it can support sustainable jobs in both its mail business and post office network right across the country.

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