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

I move amendment No. 3:

To delete all words after “Dáil Éireann” and substitute the following: “recognises that:

— post offices provide crucial economic, administrative and social services to communities all around Ireland, especially to those in rural and isolated areas;

— technological and societal changes have presented significant challenges to the existing post office business model and, as a result, the post office network is in need of modernisation to build, maintain and protect a service that meets the needs of communities across the country, both rural and urban, for the medium- and long-term;

— the announcement by An Post of 159 voluntary closures stems from an agreement reached in May with the Irish Postmasters’ Union (IPU) Executive, which was endorsed by 80 per cent of IPU members;

— in its negotiations with An Post, postmasters sought both the modernisation of the network and a voluntary redundancy package for those who wanted to leave the business;

— postmasters throughout the country have given dedicated service to rural and urban communities over many years and individual decisions to exit the business, for whatever reason, must be respected;

— the agreement between An Post and the IPU represents an important first step in reinvigorating our national post office network and in making it a viable, sustainable and modern network for the future;

— the Programme for a Partnership Government is committed to revitalising the An Post network through the introduction of new services; and

— it is longstanding Government policy that postal services will not be directly subsidised by the State, a policy which has been supported by successive Governments;

notes that:

— the Minister for Communications, Climate Action and Environment has taken significant action to ensure the future viability of An Post and secure the future of the post office network, and these actions have resulted in a restructuring of the company, expansion of services in the post office network and have protected thousands of jobs in the postal sector across the country;

— a Government investment of €30 million was secured for An Post in order to safeguard the 5 days a week mail delivery service (€15 million) and to protect post office counter services (€15 million);

— Government action has enabled An Post to stabilise its financial position, develop and begin to implement a strategic plan which has seen the company split into two distinct business units:

(i)An Post Mails and Parcels; and

(ii)(ii) An Post Retail;

— as part of its strategic plan, An Post announced a renewed vision for the post office network which centres on the availability of new services in a modernised, revitalised network, and critical to the implementation of this vision is the deal secured with the IPU;

— An Post is committed to investing €50 million in growing and modernising the post office network over the next few years, which is the equivalent of €45,000 per post office across the country;

— the Government continues to provide significant business to An Post through the Department of Employment Affairs and Social Protection social welfare contract and National Treasury Management Agency business;

— An Post has confirmed that it has implemented 17.5 of the 19 recommendations of the Final Report of the Post Office Network Business Development Group (Kerr Report) which relate to An Post, and arising from the recommendations of the Kerr Report, Government funding of €80,000 has been allocated to roll out a pilot scheme called ‘Digital Assist’, which will see 10 post offices being equipped to help citizens with online Government interactions;

— the Government has also approved the establishment of an interdepartmental working group, which will report to Government by the end of the year, to identify options, including procurement frameworks, for delivering services to those citizens who do not wish to use, or are unable to use digital services;

— the Government has recently published its report entitled ‘Local Public Banking in Ireland, and on foot of this report, an independent evaluation of local public banking ***will be carried out alongside a stakeholder forum;

— in line with the terms of the agreement with the IPU, a voluntary redundancy package was advertised by An Post and 159 postmasters and postmistresses have elected to avail of this package, as in the majority of cases the business is simply no longer sustainable due to declining footfall;

— while the voluntary redundancy package will result in post office closures, An Post has given a commitment that there will be a post office in every community of over 500 people and within 15 kilometres of 95 per cent of the rural population and 3 kilometres of the urban population;

— a protocol specifically sought by the Minister for Communications, Climate Action and Environment ensures that any closures are on a voluntary basis, and where a closure is due to occur An Post will make an assessment on the future provision of services within the locality by reference to specific criteria;

— individuals, groups or representatives can apply to have decisions reviewed through a new independent review process which will determine if An Post has correctly applied the criteria outlined in the protocol, and any retailer in the locations earmarked for closure can apply to An Post to be considered to take over some or all of the services of that post office and may appeal an unfavourable decision; and

— by facilitating those that wish to exit the business, neighbouring offices will be further supported, thereby ensuring a sustainable network for the future; and

calls on the Government to:

— ensure Government services continue to provide the backbone of a sustainable nationwide post office network;

— support An Post in the roll out of new services and the delivery of its strategic plan to ensure the financial viability of An Post and the continued fulfilment of its mandate to deliver a mail delivery service and a viable post office network; and

— ensure that An Post engages fairly with the 159 communities where postmasters are retiring, to ensure post office services are appropriate to the local area and take into account the potential for co-location.

I thank postmasters the length and breadth of the country for the dedicated service they have given to rural and urban communities over many years. As Members are aware, some postmasters have taken the difficult decision in recent weeks to leave the business. I will return to that issue.

Some people have mischievously given the impression that I do not understand or care about the issues of rural Ireland. As many Members are aware, I represent the most rurally dispersed constituency in the country and have consistently raised the issue of the post office network in Dáil Éireann over many years. I have first-hand experience of the concerns and issues involved. I understand the concerns of older people and that this is an anxious time for many of them. I have watched the gradual demise of the post office network over many years. More than 500 post offices closed during the economic boom between 2002 and 2007, while people sat on their hands and allowed the post office network to fall into decline. There was no new investment in the network or services provided. I do not want that to continue. My objective is to keep as many post offices as possible viable and open across the country.

As I have previously pointed out, some post offices have minimal numbers of transactions. One particular post office issues 11 social welfare payments a week. We all know of places the length and breadth of the country where people are voting with their feet, bypassing the local post office and going elsewhere. That is the reality which cannot be ignored.

The postmasters of this country and the communities they serve deserve a clear future and a plan to be put in place for the development of and investment into the post office network and its services. Such action was not taken by a series of Governments through the decades. Although Government after Government promised to do something, nothing was done. We have now set out a clear path and a future for the post office network and by the middle of next year, every single post office in this country will have access to high-speed broadband.

As a Member of Dáil Éireann, I have for many years put forward constructive solutions to bring new business into the post office network. I am now in the lucky position that I can implement some of those solutions. I point out to Members here, some of whom have been Members of this House for a considerable number of years, that I was one of only five Members of Dáil Éireann or Seanad Éireann to make a submission to the Kerr report. I want to take this opportunity to thank Bobby Kerr for his meticulous work on this issue. An Post has confirmed that it has implemented just over 17 of the 19 recommendations appropriate to that company in the Kerr report. In addition, the Government has recently agreed to look at a new offline avenue for all Government online services. This work has started and the Government will be updated on progress before the end of the year. We want to have a sustainable post office network that is available to all our citizens, both urban and rural, in the medium and long term. Although I accept that the closures will have an impact on the communities served by the post offices in question, the background to this issue has not been well represented.

It is important to put the An Post announcement relating to the changes to the post office network in context. Ninety-eight weeks ago, I was presented with a future for An Post and the post office network that was uncertain and very bleak. I was determined that the company would not go under and there was a real possibility that would happen because of the failure by successive Governments to act. The potential for a complete shutdown of postal services with the loss of thousands of jobs was undeniable. Immediate action was needed to ensure the survival of An Post. We also needed to safeguard the post office network. That was necessary to protect thousands of jobs across the country. Nine thousand people work in An Post. Those imperative requirements needed decisions. I can tell the House that those decisions have been forthcoming. I did not shirk my responsibility as Minister, as my predecessors did. We have worked tirelessly to restructure the company to save it. I am sure members will recall the urgent need to introduce legislation to facilitate the increase in the price of a stamp. That was an essential first step to avoid a cash crunch for the company and give An Post time to construct a plan for a sustainable future. The challenges facing An Post were recognised across all political parties. I acknowledge the support I received from colleagues on all sides of the House to put that legislation in place and provide a much-needed window for An Post to put its strategic plan in place.

I also worked hard on securing Government investment of €30 million in An Post to safeguard the five days a week mail service and collection service and to protect the post office counter services. Two years later, critically important decisions have been made. An Post has been stabilised because of the action that has been taken, and it is now one of the few mail services in the world that is expanding its service from a five days a week letter service to a six days a week parcel service. The fabric of services An Post delivers has been strengthened.

The company is changing from a 19th century model to one that has relevance and resonance in the 21st century in both rural and urban areas. In fact, the current postmasters’ contract dates back to 1907, and we all accept that things have changed dramatically since then. While the future is not as bleak for An Post, the underlying challenges remain. Mail volumes continue to decline. E-substitution and the move to online payments and online banking continue to have an impact on the post office network. There is widespread acceptance that the post office network requires modernisation to build, maintain and protect a service that meets the needs of communities throughout this country. An Post’s strategy for the post office network centres on the availability of new services in a modernised, revitalised network. These services must include a better range of Government services, financial services and e-commerce services for shoppers and small businesses.

Since taking office, I have been driving the offline avenue with my officials, my Cabinet colleagues, the management team in An Post, the Office of Government Procurement and other agencies. I recently received Government approval to look at an offline avenue for all Government online services. This work has started and Government will be updated on progress before the end of this year. Investment of €50 million in the post office network will now take place, which is equivalent to €45,000 per post office, and is based on getting communities to use the enhanced services their local post office will provide through a modernised network.

These measures are meaningless unless the public use the service An Post provides. Key to the survival of the network is the willingness of all to use it. Government funding of €80,000 has been allocated to roll out the Digital Assist programme. Ten post offices are being equipped to become digital hubs to help citizens navigate online Government services and access other online goods and services.

Essential to delivering on a renewed vision for the post office network is the agreement reached with the Irish Postmasters Union, IPU. This agreement followed months of intensive negotiations which were overseen by Turlough O’Donnell at my invitation. I take this opportunity once again to thank Mr. O’Donnell for his work, time and commitment to this process.

In its negotiations with An Post, postmasters and postmistresses sought the modernisation of the network and a voluntary redundancy package for those who wanted to leave the business. It is important that the decision of those who wish to leave the business is respected. The decision on whether to accept the package was an individual one for each postmaster. All closures have been on a voluntary basis and the IPU has publicly confirmed that.

It is also important to remember that when a post office closes, 70% of that business will transfer to the neighbouring office. The reality is that by facilitating those who wish to exit the business, neighbouring offices will be further supported, thereby ensuring the sustainability of the network as a whole. Deputies will be aware that an independent appeals process has been put in place to enable communities to review the decision of An Post. Retailers have the opportunity to look for those new and additional services and that can be independently reviewed as well.

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