Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

He has recognised the reality that An Post is a commercial State body. He also knows that An Post has been through an extremely difficult period in the last couple of years. It suffered a 40% loss in mail volumes which brought it to a really precarious point last year when the outlook was very bleak for the 9,000 employed in it. The company has had to take some difficult decisions, including to increase significantly the cost of postage and restructure with voluntary redundancies. It has also been working to expand, find new business and pursue exciting new opportunities.

Some time ago, when An Post was in discussions in the Labour Court with the unions, it confirmed that, as part of its restructuring, one of its mail centres would close in 2019. However, it has been confirmed in the House previously that no decision has been made on which centre will close. Consideration of this issue is still ongoing. It will be a decision for the board and management of the company. It is a commercial company with a mandate to deliver postal delivery services and a viable post office and mail centre network.

In 2017, when the Labour Court issued a recommendation for a 2% pay increase in An Post from 1 July that year, payment was conditional on necessary cost savings being achieved. One of the requirements was conclusion of discussions on An Post's proposal that the size of its mail processing network be reduced. The recommendation provides that 50% of the savings arising from the closure of a mail processing centre will contribute to the cost of the pay award.

A lot of time and effort have been spent in the last two years in working on restructuring An Post which has found itself in a very serious financial position. This work was critical in order to save it and protect thousands of jobs and the post office network across the country. Postal services have been expanded from five days to six for parcel deliveries and collections in several areas. There is no doubt that continued transformation of the postal business will be difficult and require tough decisions to be made, but the new changes will be designed to make An Post fit for a future in which the organisation can be confident, robust and grow again.

I understand what the Deputy is saying about there being great concern when it has been flagged that one of the mail centres is to be closed. However, An Post has a strong reputation for working closely with the unions and worker representatives and handling such decisions in as sensitive a manner as is possible and sought to do so in its dealings. When the company introduced a voluntary redundancy scheme last year, the terms were generous and fair. Ultimately, we have to see An Post develop a trajectory for its business that will be sustainable in the long term.

That is why it is expanding into financial services with the recent decision in regard to Avantcard and it is developing mortgage packages and facilitating one-stop-shop locations for non-digital transactions. It is trying to develop its services.

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