Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

The importance of the post office network has been clearly demonstrated during the pandemic. We have seen a range of initiatives carried out through our post offices which have helped to support local communities, the elderly and vulnerable. However, the serious decline in the volume of mail and the impact of Covid-19 on footfall through post offices has had a severe impact on the postal network. I am aware of the concerns of the Irish Postmasters Union, IPU. I am also aware of the findings of the Grant Thornton report, which was commissioned by the IPU.

It is a long-standing policy of the Government that postal services will not be directly subsidised by the Government. However, we remain fully committed to a sustainable post office network as a key component of the economic and social infrastructure in both rural and urban areas. The programme for Government recognises that a modernised post office network will provide a better range of financial services and e-commerce services for citizens and enterprise, as part of our commitment to a sustainable nationwide post office network.

An Post put in place a strategic plan, covering the period from 2017 to 2021, in response to the structural challenges faced by the postal sector. In order to implement the plan, the cost of which was estimated to be in the region of €150 million, the Minister for Finance provided a loan of €30 million to the company in December 2017. The cost of supporting the renewal of the post office network was €15 million and the continued fulfilment of a five-day mail delivery service cost another €15 million. As part of the delivery of the plan, the company was split into two distinct business units - An Post Mails and Parcels, and An Post Retail.

An Post is transforming its retail network by delivering new products and new formats. Among other things, it is diversifying and growing the financial services products it provides to individuals and SMEs to include loans, credit cards and more foreign exchange products, it is offering local banking in association with the major banks, and it is providing a full range of State savings products. Two new dedicated sub-brands, An Post Money and a new business-to-business brand, An Post Commerce, have been launched. An Post's investment of €50 million in the network is about getting communities to use the enhanced services in their local post office.

The Government believes An Post has untapped potential to do more and to make a further significant contribution across many areas of public, business and community life in Ireland. With an evolving mandate, An Post can emerge as a central hub for a wide variety of valuable community-focused services. We will work closely with An Post to see if there is scope to channel additional services through the network. All options will be considered fully and efforts will be redoubled to give effect to our commitment to ensuring a sustainable and viable post office network.

See this speech in context