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

I thank Deputy MacSharry for raising this Topical Issue matter. I address it on behalf of the Department of Communications, Climate Action and Environment. I thank postmasters throughout 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 to leave the business in recent weeks. I understand the concerns of older people in the communities and that this is an anxious time for many of them. We have all watched the gradual demise of the post office network over many years. More than 500 post offices closed during the economic boom in this country between 2002 and 2007 while no action was taken and the post office network was allowed to fall into decline. No new investment or services were put into it. The Government did not want that to continue.

The postmasters in this country and the communities they serve deserve a clear future and for a plan to be put in place for the development of and investment in the post office network and its services. We have set out a clear path and future for the post office network. Almost two years ago, the then Minister, Deputy Denis Naughten, was presented with a future for An Post and the post office network that was uncertain and very bleak. There was a very real possibility that the company would go under. 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 and the post office network. That was necessary to protect the jobs of the 9,000 people working in An Post throughout the country.

Two years later, critically important decisions have been made. An Post has been stabilised because of the actions that have been taken. The company is changing from a 19th century model to one that has relevance and can have resonance in rural and urban areas in the 21st century. 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 the service that meets the needs of communities throughout the country. An Post's renewed vision for the post office network centres on the availability of new services in a modernised and revitalised network. These services must include a better range of Government, financial and e-commerce services for shoppers and small business.

Since taking office, the former Minister, Deputy Naughten, drove the offline avenue with his officials, Cabinet colleagues, the management team in An Post, the Office of Government Procurement and other agencies. Government approval was recently given to examination of an offline avenue for all Government online services. This work has started, and Deputy Naughten's successor will update the Government on progress before the end of the year.

Investment of €50 million in the network, equivalent to €45,000 per post office, is based on getting communities to use the enhanced services that their local post office will provide through a modernised network. These measures are meaningless unless the public use the services the post office provides. Key to the survival of the network is the willingness of all of us to use it.

Essential to delivering on the renewed vision for the post office network is the agreement reached with the Irish Postmasters Union, IPU. In their 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 one for individual postmasters.

An independent appeals process has been put in place to enable communities to have a decision relating to their local office reviewed. This is part of a protocol that the then Minister, Deputy Naughten, specifically sought. In addition, any retailer in the locations of the 159 post offices can apply to An Post to be considered to take over some or all of the services of the closing post office. If a retailer looks to avail of services, and if An Post decides, for one reason or another, not to provide them, that decision can be also submitted for review through the independent process. An Post has confirmed that it has extended the deadline for receipt of appeals under this process to Wednesday, 31 October.

I understand the Deputy has raised concerns about the outcome of a specific appeal. It is important to point out that the review process is independent and neither the Minister nor his officials have a role in it. It would, therefore, not be appropriate for me to comment on individual cases. I understand, however, that the former Minister, Deputy Naughten, raised the matter with An Post and was assured that the contents of the detailed appeal referred to by the Deputy were taken into account before the final determination issued. I will ask officials in the Department to take on board the information the Deputy has provided if it is in addition to what they were previously led to believe.

It is widely accepted that the post office network has been facing many challenges for some years, with a continuing decline in transaction numbers, primarily driven by the move to online payments and online banking as well as e-substitution. Standing still is not an option for the network. After years of drift, there is now a clear direction for An Post and the post office network.

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