Dáil debates

Wednesday, 7 July 2021

Post Office Network: Motion [Private Members]

 

10:07 am

Photo of Verona MurphyVerona Murphy (Wexford, Independent) | Oireachtas source

Last October, the Government was put on notice that if there was no movement on the post offices, we would revisit the issue, and here we are, which is disappointing to all concerned. This motion calls on the Government to introduce an interim solution that could be effective and deliverable from July 2021 to guarantee the current post office network and prevent any further closures. It could provide long-term certainty to enable postmasters to invest, develop and grow their businesses and ensure that all citizens have full access to the important services the post offices provide. It should designate the post office network as the offline gateway of choice for citizens availing of State services due to its unique nationwide network and existing strong relationship with offline citizens. It could reinvigorate the post office network by extending the services post offices provide, by retaining existing services such as social welfare payments, by commencing the provision of offline government services with the availability of motor tax renewal through the network and by giving recognition to the existing network as being both a rural economic lifeline service and the locus for future development of financial services outside of the existing banking framework. All these objectives are achievable with focused, dedicated and determined action.

The post office sector is a vital piece of infrastructure to many rural and regional communities. Almost 950 post offices exist throughout Ireland. They vary in size and in the services they provide. In County Wexford, there are 52 post offices. I am in regular contact with people who run post offices, particularly in the areas of Fethard, Ballycullane, Ramsgrange, Campile, New Ross and many others. Clearly, the rural post office plays a crucial role in community life. Unfortunately, it is becoming more of a struggle for postmasters and postmistresses to make a sustainable living from their work. Post offices throughout Ireland provide a vital service to hundreds of communities and millions of people. Not only do they provide vital services, but they also provide a warm, helpful and friendly face for the people in the local community. These things make the post office network a crucial asset worth protecting and capitalising on.

As part of the Regional Group, I have called many times for post offices to be viewed as a one-stop-shop for engagement with State services. I know many State services can be dealt with via the post office, but there is still a long way to go and there are many more services that could be incorporated into the post office's role. This could result in huge benefits for the customer, the post office and the State.

The correct action is for the Government to ensure the sustainability of the post office network. When a postmaster or postmistress retires, there must be conditions in place to encourage new entrants to take his or her place in order to keep the service alive. This may involve emergency investment, but, more importantly, it will require an expansion to the role of the post office network to allow it greater opportunities to sustain itself. In recent correspondence from An Post, it highlighted the announcement that Bank of Ireland customers will be able to avail of banking services in post offices as proof of An Post's value in local communities. More than 500 post offices nationwide are situated in locations without a mainstream bank. This development shows how important the post office network is.

The Grant Thornton report made the point that the post office network remains a highly valuable national asset that contributes far more to the economy than the cost of the public service obligation. It stated that protection and expansion of the network would result in an estimated social value for Ireland of between €344 million and €776 million. Post offices need opportunities to develop. They need to provide as many useful services for people in local communities as they possibly can. They need to be seen as the go-to place for people to engage with State services.

The financial services market needs competition for consumers to be able to get value for money. The post office network is ideally placed to provide an alternative in this market. As I said last week, the current state of our banking sector is a major cause of concern and has a big impact on many other aspects of our lives, most notably the housing crisis. We have seen Ulster Bank and KBC leave the Irish market. I believe there is a more important role for post offices and credit unions in our financial sector. Hopefully, it will lead to a situation where a healthy and vibrant banking sector can develop in a sustainable way without the need for the State to provide rescue supports again. Competition in any sector mainly benefits the consumer. The current lack of competition in the market is bad news for the consumer. A lack of competition reduces the number of products available and means that the remaining firms have fewer incentives to provide competitive deals to consumers. Overall, I hope there will be cross-party support for the motion, which aims to revitalise and further modernise the Irish post office sector.

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