Cathal Berry (Kildare South, Independent) | Oireachtas source

I welcome the Minister of State. I am proud to be present this morning, as a member of the Regional Group, to promote this important motion to protect the Irish post office network. As a number of speakers have said, it is timely due to the Grant Thornton report being released a couple of weeks ago. The report had devastating findings. There was an annual shortfall of €17 million, which equates to approximately €20,000 per post office. The report's central recommendation is that a PSO levy is introduced or that a PSO charge from the State is used to plug this gap. I take the Minister of State's point regarding the long-standing practice, but perhaps on this issue an exception should be entertained. The main reason is that such a subsidy is available throughout the European Union at present. If it is good enough for other European countries, with the blessing of the European Commission, it is something we should consider here as well.

The Grant Thornton report is quite unpleasant reading. It says there is huge strain on the post office network at present. Footfall is way down, transactions are down over 25% and, as a result, the incomes of postmasters have fallen dramatically. With over 900 branches nationwide, the post office network is crucial for urban, regional, rural and coastal communities. Some 1.3 million people, and I include myself among them, use post offices every week. Most importantly, the network provides a vital service for those who are financially or socially marginalised or excluded. Other contributors mentioned that in the debate. The postmasters want to stay in business, but the financial viability and sustainability of the sector are being challenged like never before. Consequently, many local post offices are likely to close in the near term, unless the conditions in which they operate change dramatically.

I welcome the change from the Department of Employment Affairs and Social Protection whereby it will begin to pay social welfare payments on a weekly basis from 2 November. I was happy to hear the Minister of State confirm that this morning. However, more can be done to modernise the service and enhance the viability of the network. For example, as has been mentioned, the post office network should be designated as an offline gateway of choice for citizens availing of State services. This would be a significant improvement, perhaps even a lifeline, for the sector. Unlike many financial institutions, the post office is still a very trusted brand. It maintains excellent relationships with all its customers, particularly those in the elderly or isolated demographic. There is no reason that it cannot be designated as a one-stop-shop or hub for additional State services.

The provision of motor tax renewals through the post office appears to be a logical first step. Not only would this local service further reduce the list of standard excuses for not displaying a valid car tax certificate, it would also have the additional benefit of taking significant pressure off busy local authority offices, which should be focused more on providing strategic planning and direction for their counties instead of being distracted by routine administration. Enhancing the amount of financial services available at post offices would also help considerably. This is crucial. With the reduction in the number of bank branches throughout the country, countless towns and villages have no direct access to financial services. The Minister of State will appreciate that this has massive ramifications for communities across regional and rural Ireland, for both individuals and small and medium enterprises.

In summary, the post office is a key component, and in many cases the only component, of the economic and social infrastructure of local communities throughout this country. The network's recent commitment to provide free mail to residents of care homes is another example of this. The network needs and wants to survive. We should push more business through the post offices. I look forward to the Government's report on the provision of offline services which is due to be published shortly. If the Government is serious about the national spatial strategy and its commitment to balanced regional development, it must act swiftly and decisively to protect this vital network before it is too late.

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