Peter Fitzpatrick (Louth, Independent) | Oireachtas source

I thank my colleagues in the Regional Group for facilitating the motion. It is vital at this critical time that Dáil Éireann gets behind this motion and supports our argument that post offices need urgent Government assistance to survive the current crisis and build for the future so that we have a profitable and sustainable post office network.

An Post is about more than post offices; it is a vital part of every community in every village and town in Ireland. In my constituency, the importance of the local post offices in the likes of Carlingford, Omeath, Knockbridge, Ardee and elsewhere in the county is clear. It is not only a place where people conduct business; it is also a place where social interaction takes place and, more often than not, it is the lifeblood of a local community. Recent research carried out by Red C found that 91% of those surveyed agreed that the post office provided a valuable service to the local community, 86% supported the Government providing financial support to keep their post office open and 86% wanted more State services available at the post office.

It is fair to say that we all realise that the local post office is much more than just a post office and, again, every Member will agree that the Government must do everything in its power to ensure that the local post office remains open. When a post office closes, other local businesses also suffer. This has been shown over the years.

In our motion, we are asking Dáil Éireann to recognise the fact that transactions within the post office network are down by an estimated 25% as a result of Covid-19, which further threatens the viability of the network. We are also seeking support to recognise the need to put the post office network on a sustainable operational and financial footing in line with the Cabinet decision in 2017. In addition to this, we are asking that the findings and recommendations contained in the Grant Thornton report are noted and acted upon, in particular, the recommendation that a public service obligation, PSO, of €17 million be introduced immediately. We are calling on the Government to designate the post office as the offline gateway of choice for citizens availing of State services due to its unique nationwide network and existing strong relationship with off-line citizens.

The statistics behind An Post are quite impressive. A total of 28% of the population or 1.3 million people continue to use the services of the network every week, which includes the distribution of €4.6 billion in social welfare payments.

Coming from a business background, I know the challenges one faces with what seem to be impossible odds. What the post office needs now is a small amount of Government support and a roadmap for the future.

The first of these Government supports is the easy one. The post office network shortfall is approximately €17 million. It generates revenue of €53 million which costs €70 million to deliver. These losses are mainly as a result of the ongoing transfer of traditional post office services to online providers and a reduction in traditional mail business. In today’s terms, the immediate requirement of €17 million is a small amount of investment to secure the future of An Post. I call on the Government first and foremost to provide this funding to safeguard our postal network.

The roadmap is the more difficult challenge. If An Post is to be viable, it must return to profitability. For this to happen, it must be allowed and given the opportunity to provide more services than it currently does. In recent times, we have heard about the likelihood of some major banking institutions pulling out of Ireland in the future. I am not alone in saying that all the major banks would prefer not to have personal bank accounts and the costs associated with them. However, the reality is that personal customers require an operational bank account. This account is needed to make debit card payments, direct debit and standing order payments and money transfers, etc. That presents a real opportunity for An Post to provide a service to personal account holders in the form of a basic payment account. An Post is uniquely positioned to offer this service. The credit union movement could also partner with An Post to provide this much-needed service to personal customers. It is clear that the main street banks are not interested in this type of business and this presents an opportunity for An Post.

An Post already has the infrastructure in place and with possible co-operation from the credit union movement could have the IT structure in place. I know from speaking with many local people that they are greatly in favour of such a move. It could also provide an opportunity to An Post to work closely with schools, particularly primary schools, where it could encourage students to open their first account with An Post. One finds that when people open an account at an early age and become familiar with it, they stick with it. I know from speaking with the older generation that they would be very happy to conduct their business with An Post as opposed to the main banks. There is an opportunity for An Post to develop this side of its business.

The pandemic has taught us that business must constantly change and adapt to the challenges faced. There is no doubt that the pandemic has made many businesses rethink. Many now realise that they must be more active online and this offers opportunities to post offices. I believe the local post office should be given the support it needs to work with local businesses to provide a cost-effective and reliable delivery service for those businesses that require the delivery of goods, particularly those purchased online. There are a number of couriers that carry out a similar service, but I firmly believe the post office could offer a unique partnership with local businesses to provide a more cost-effective solution. In Dundalk, for example, the local post office could work in partnership with many local businesses to deliver their online sales. These local businesses need help in order to compete with the large competitors many of which are based outside of the country. In Dundalk, we actively encourage people to shop local and keep their business in the area. A collaboration between An Post and local businesses could work in every town and village in the country, and provide much-needed revenue for An Post and service for local retailers. Another area in which An Post could benefit is in relation to motor tax. This service could be provided by An Post and could provide much-needed revenue.

I thank my colleagues in the Regional Group once more for their assistance in bringing this motion before the House. It is vital that we first recognise the vital service An Post provides to all local communities in every village and town in the country. It is also vital that we come to its rescue and that the Government provides the necessary funding to fill the current gap of €17 million. It should be noted that the Government already provides substantially more funding to bus and rail services in order to keep them operating, and An Post should be treated the same way. I hope this motion gets the support of the House, particularly from Members on the Government side, and that they recognise, now more than ever, that we need a viable and sustainable postal network.

See this speech in context