Seán Kyne (Galway West, Fine Gael) | Oireachtas source

Like many of the Deputies this evening, I pay tribute to the postmasters across the country for the service they have given over many years.

In April this year, An Post announced its renewed vision for the post office network which centres on the availability of new services in a modernised and revitalised network. The announcement was supported by an agreement reached between An Post and the Irish Postmasters Union, IPU, executive following months of intensive negotiations. It was subsequently endorsed by 80% of IPU members. The IPU agreement represents a necessary first step in reinvigorating our national post office network and making it a viable, sustainable, modern and vibrant network for the future, capable of adapting to the changing environment in which it operates by providing a service that meets the needs of communities across the country, particularly in rural areas.

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. Some of those have now taken the decision to leave and it is important that these decisions are respected. They have not been taken lightly or without good reason. There are several reasons that postmasters across the country are availing of this offer including age and low population levels, as well as the fact that some postmasters are not even earning the minimum wage as a result of declining transaction levels and mail volumes.

An Post has advised that where a post office closes, 70% of the business transfers to a neighbouring office. The reality is that by facilitating those who wish to exit the business, neighbouring offices are further supported thereby ensuring a more sustainable network for the future. As part of its strategy for modernising the post office network, An Post has established a dedicated business unit within An Post, An Post Retail. Investment of €50 million in the network by An Post, which is equivalent to €45,000 per post office, is about getting communities to use the enhanced services in their local post office that will be provided through a modernised network.

Additional services that An Post proposes to introduce through the network include a better range of Government services, financial services and e-commerce services for shoppers and small businesses. There is already a rapid expansion of banking services happening with the smart current account and enhanced foreign exchange facilities. Post offices will have credit card services and will be able to provide loans to small business and personal loans. An Post is committed to ensuring that our post offices will be equipped with the range of services that will attract and retain footfall. However, these measures are meaningless unless the public uses the services provided.

There has also been an expansion of postal services in the past two years. An Post vans can now be seen in rural communities on Saturdays. That is because An Post now provides a parcel service to every rural townland six days a week. There was a concern several years ago that we would not be able to retain the five-day service.

Agreement with the IPU removes a level of uncertainty that has existed as a result of the piecemeal approach associated with closures of post offices for the past 30 years. The IPU has publicly acknowledged that. An Post has given a pledge to retain a post office network right across the country. However, we must of course be cognisant of the declining transactions in recent years that reflect the reality of the world we live in today. We must equip post offices with a range of services that will attract and retain footfall. Those measures are meaningless, however, unless the public uses the service the post office provides.

Government business is the backbone of the post office network. The National Treasury Management Agency, NTMA, service in respect of State savings and the social welfare contract are the two big financial drivers for the overall network. In April this year, the Minister for Employment Affairs and Social Protection renewed her Department's contract with An Post to provide pensions, child benefit and other social welfare payments at post offices.

While the Government's policy is to offer Government services online, there will always be a segment of the population which is not comfortable or proficient accessing online tools or services. The post office network is the obvious choice as the offline gateway for citizens with its nationwide network and existing strong relationship with offline citizens. Government funding of €80,000 has been allocated to roll out a pilot scheme for digital assist which will see ten post offices equipped to help citizens with online Government interactions. Government approval has been secured to explore how further services might be made available to our offline citizens. This would be delivered via a centralised procurement framework. A working group comprising representatives across Departments will be established to consider this issue and will report back to the Government by the end of year.

Standing still is not an option. If, politically, we tread water or if we shirk decision-making, we will not have a stronger post office network. Instead, we will have a weaker one and, potentially, ultimately we will have no post office network at all. The Minister is determined to embrace change because change is required to deliver for post offices and a postal service for the future. Change is especially required in rural areas. There is widespread acceptance that the post office network requires modernisation to build, maintain and protect a service that meets the needs of communities across the country today and into the future.

While much has been achieved in An Post over the past two years, there must be a clear focus on continued delivery for the future. That is critical to ensuring the long-term success of the national postal operator and a sustainable post office network to serve future generations.

It is important also to restate that any individual, group or representatives concerned about a decision can apply to have An Post's decision reviewed through a new independent review process. It is a completely independent process. The closing date for receipt of appeals has also been extended to 31 October, which gives the groups, communities and businesses the maximum chance to put forward an appeal to allow it to be individually adjudicated on.

Having worked with the Minister, Deputy Naughten, for the past two years, I know the commitment he has to ensuring the viability of An Post. We have had darker days in terms of the future of the company. We have had debates in this House about increasing the price of stamps, etc., to ensure the viability of the business. We have seen that turned around to a degree with the parcel delivery service with six-day deliveries, when we were concerned we would not be able to keep vans on the road for five days to deliver ordinary mail.

An Post has a plan and a vision to secure its future and to secure the maximum number of rural post offices. That is what this is all about. We can have a scattering of very small post offices that are not viable and will never be viable or we can try to consolidate the network and ensure the viability of the maximum number of post offices in urban and rural areas.

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