Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

I thank the Deputies from Kerry, Donegal, and Meath for raising these issues. I apologise that I am not a Minister in the line Department. The Minister for Communications, Climate Action and Environment, Deputy Bruton, is at European Council meeting in Luxembourg. As Deputies will know, Ministers of State routinely cover their colleagues. I wish to cover as many of the points raised as possible. I have a reply from the Department but I will ask the Minister’s office to revert to the Deputies individually if there are any issues which they feel are not adequately addressed in the reply.

It has been stated here previously that An Post is a commercial State company and as such, day-to-day operational matters, including decisions in relation to the company and its operations are matters for the board and the management of the company and not ones in which the Minister for Communications, Climate Action and Environment has a statutory function. An Post has an independent board and its mandate is clear in that regard. That has been the case since An Post was created as a semi-State company.

The environment in which the post office operates is changing and the network needs to change to thrive, particularly with the move to digital transactions. These changes are impacting on the revenue being generated by the network as a whole. In the face of serious declines in the volume of mail and post office business, An Post faced growing losses and has had to undertake a major restructuring of Its business to continue to be able to build, maintain and protect a service that meets the needs of communities across the country.

The financial challenges facing An Post have been well documented, primarily due to the impact of e-substitution on mail volumes. Mail volumes have decreased some 40% since 2007. In 2018 alone mail volumes declined by 7.6%. In response, the board of An Post oversaw the preparation of a strategic plan setting out a transformation of the company in both the mails and retail business. An Post has advised that as part of this process, much detailed work has been done to ensure that the right infrastructure is in place to adapt to the rapidly-changing mails and parcels business.

Two years later, critically important decisions have been made. An Post has been stabilised because of the action that has been taken. The implementation of the strategic plan is continuing to yield results. An Post has gone from being in a very difficult financial position to making a profit.

The post office in Kilcar is due to close at the end of this week as a result of the postmaster retiring. The business, including Department of Employment Affairs and Social Protection payments, will transfer to Carrick post office, which is 5 km away. I understand that Carrick, like Kilcar, is situated within the Gaeltacht area. Customers can also contact the Department of Employment Affairs and Social Protection to arrange to collect their payments at any post office of their choice, including Killybegs and Glencolumbkille, in addition to Carrick.

The transfer to Carrick will help to secure a sustainable future for that office and the other post offices in the area, as well as ensuring access to services to post office services. An Post has confirmed that there will be no change to mail services to Kilcar and the surrounding area.

Should the local community or local individuals wish to have An Post’s decision on future post office services in Kilcar assessed in line with the established post office closure protocol, they can apply to the independent review process to have the case assessed and An Post will have regard to the assessors' recommendations.

That matter was referred to by Deputy Gallagher. Any such appeal should be submitted as soon as possible.

Of the post offices referred to in County Meath, I understand seven have been closed in the consolidation process that was announced last year. I have also been told that An Post proposed to open a new post office, with Kentstown being chosen as the location, but having advertised twice for someone to take on the position, it has as yet received no applications.

Key to the survival of the network is the willingness of the public to use the services the post office provides. Investment of €50 million in the network is under way. It is based on getting communities to use the enhanced services provided. There is no doubt that continued transformation of the postal business will be difficult and require tough decisions to make An Post fit for the future.

To respond to the specific issues raised by Deputies Michael Healy-Rae and Ferris, I will ask the office of the Minister to reply directly to them specifically on the issues they raised following their meeting with representative of the Irish Postmasters Union.

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