Dáil debates

Thursday, 5 May 2005

Priority Questions.

Post Office Network.

2:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 4: To ask the Minister for Communications, Marine and Natural Resources if there will be any further closures of post offices or sub-post offices; if he will secure a major improvement in labour relations at An Post; if his attention has been drawn to the social responsibilities incorporated in the services provided by An Post and the post offices; if he will take the necessary initiatives to set the postal service on a sound financial footing and in a position to provide a modern, efficient and competitive service in line with the requirements of the business and domestic sector now and in the future; if he will ensure the transaction of the maximum amount of Government business through An Post and the post offices, with particular reference to social welfare payments and Government grants; if he will upgrade all post offices, including sub-post offices, to facilitate modern electronic fund transactions; and if he will make a statement on the matter. [14773/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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There continues to be a key national role for An Post, both in delivery of mail and as a quality service provider through its nationwide network of post office outlets. The market for traditional postal and post office services is changing globally and meeting customer needs has become more important than ever. In order to remain competitive, An Post needs to make the best possible use of its long established and trusted brand name and deploy its resources in a manner which continues to serve existing customers' needs and attracts additional customers for a range of new services.

There is agreement that change is required if the postal services of An Post are to adapt to the modern business environment. To develop an agenda for change, an exhaustive process of negotiation between An Post management and trades unions, with the assistance of the State's industrial relations machinery, has been ongoing for some time. In an effort to resolve all remaining difficulties on collection and delivery arrangements, the outstanding issues are currently being dealt with in the Labour Court with a view to agreeing a way forward that will see the company placed on a secure financial footing. I have continuously emphasised the need for all stakeholders in the company to work together in a partnership approach and to utilise the industrial relations mechanisms of the State, where necessary, in order to agree and implement a strategy to return the company to financial stability.

This Government and the board of An Post are committed to the objective of securing a viable and sustainable nationwide post office network as set out in the programme for Government. Notwithstanding the commercial remit of An Post, there is a clear Government recognition of the social benefits of maintaining the nationwide post office network. Accordingly, An Post development strategies for the network continue to take full account of these social benefits. I met with representatives of the Irish Postmasters Union and I listened to their views with interest. I also emphasised to An Post management the importance of developing a long-term strategy for the network. The challenge for the company is to develop a strategy that satisfies the needs of existing customers, while attracting new customers into the post office.

Additional information not given on the floor of the House.

An Post has already had some success in winning new business and continues to benefit from a considerable amount of Government business, especially in the areas of social welfare payments and savings products. To ensure that our post offices remain attractive to customers, An Post must upgrade IT systems in order to offer an enhanced suite of financial and other services and high grade EFT functionality to social welfare customers via post offices. Pending the implementation of new IT upgrades, I have agreed with the Minister for Social and Family Affairs that, for the moment, all payment options will receive equal standing on social welfare forms and that the Department of Social and Family Affairs will not actively push EFT for social welfare clients. In addition, a pilot project will see a number of small post offices computerised.

On the matter of post office closures, it is only when a suitable candidate for a vacancy cannot be found or where there are no applicants, that a post office is closed.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Has the Minister issued any specific direction regarding his preferred options for the future of An Post? Has he asked if the outstanding labour relations issues have been addressed? Has he given a direction on the future role of sub-post offices? If so, to what extent? Can he report progress on the discussions that are taking place? Given its national importance, has the issue been discussed in Cabinet? If so, what is the nature of the direction given to the Minister by his Cabinet colleagues? At this stage, how does the Minister see a resolution of this issue and in what timeframe?

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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It is not in order for me to issue directions to An Post that would interfere directly in matters that are before the Labour Court. Therefore, I have not issued any directions per se. I have met with the management of An Post four or five times since I became Minister. The Department officials also meet with An Post on a regular basis. An Post management is aware of my views on a range of topics, including the need for An Post to resolve the difficulties that it has internally, especially in the area of postal delivery. I have spoken privately and publicly to management about where I see the future of the post office and about the necessity to modernise. I did that as recently as last Saturday at the IPU conference.

I am not directly privy to the talks which the Deputy mentioned. The talks process finishes today or tomorrow and a report will be prepared for the Labour Court, which will make its recommendations after that. There were 84 points of contention that will hopefully be resolved with recommendations from the Labour Court. I cannot discuss that which might be discussed at Cabinet, other than to say the annual report of An Post was recently before the Government and there was a general discussion on it.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Can the Minister inform the House whether he has had discussions with his Cabinet colleagues with a view to diverting all possible Government business compatible with postal services through An Post? This could maximise the Government grant from various Departments, including the Department of Social and Family Affairs.

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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It is Government policy to ensure that as much Government business as possible is done through the post office network. This year, the Garda fines collection system is the latest Government service that will operate through An Post. It is my policy to ensure the maximum amount of business goes through An Post.