Dáil debates

Wednesday, 14 March 2012

Topical Issue Debate

Post Office Network

3:00 pm

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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The next matter concerns the need to ensure adequate infrastructure for post office services and for Knockmore post office, County Mayo, to remain open. Deputies Mulherin, O'Mahony and Calleary have two minutes each.

Photo of Michelle MulherinMichelle Mulherin (Mayo, Fine Gael)
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Knockmore post office will cease operations on 1 May. I understand the Minister will tell us this is an operational matter for An Post, a State company charged with running postal service, but that is not good enough. An Post has not acted in the interests of the community in Knockmore. It is a State company set up to provide a postal service throughout the country, including Knockmore. An Post has taken the approach from the start that it was a foregone conclusion that the service was to be pulled from Knockmore. An Post has been acting like a secret society. The closure decision was made in January and was kept hush until the news broke earlier this week. No elected representatives or people in the community were made aware. There was no consultation. The local shopkeeper wants to take on and grow the service to the mutual benefit of the shopkeeper and An Post but has received no response from An Post to the letter expressing an interest, which was sent at the end of February. Why has An Post refused to engage? If An Post had concerns or required changes to make the service viable all this could have been teased out by consulting with the community and, at the very least, advertising for expressions of interest.

I have contacted An Post. It can offer no facts or figures why the service in Knockmore is being discontinued other than that it has a general policy throughout the country to reduce the number of post offices. However, Knockmore is a thriving rural community serving a population of about 4,000 with six national schools in the parish, local businesses and amenities including 40 community and voluntary groups. It is not in rural decay and losing population, like so many rural areas where no one is in a position to run a post office service. The attitude of An Post is a disgrace. I hope that the Minister will take An Post to task for its cavalier attitude in dealings with the people of Knockmore.

After a conversation with the Minister for Communications, Energy and Natural Resources, he gave me a commitment that he will require An Post to lay bare the mechanisms and reasons for the decision so that this issue can be dealt with in an open and transparent way. We can then know the issues that need to be overcome to retain the post office service in Knockmore and to give the interested shopkeeper and the people of the community a fair opportunity to do so. Fair play is required here. I will continue to pursue this matter in conjunction with Councillor Seamus Weir and the people of Knockmore who are fighting to retain their post office, which has been in existence since 1849.

4:00 pm

Photo of John O'MahonyJohn O'Mahony (Mayo, Fine Gael)
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I thank the Ceann Comhairle for selecting this matter. I wish the retiring postmasters, Ann and Billy Rodgers, well in their retirement. They have given long and distinguished service. Knockmore is the largest parish in Mayo and the parishes of Knockmore and Rathduff stretch from Foxford to Ballina and Crossmolina. There are 1,200 homes and between 3,000 and 4,000 people. Two post offices, in Corroy and Cloghans, were closed in the past ten years in the parish. The real issue is the criteria used to arrive at this decision. The decision was taken in secret and news broke over the weekend. An expression of interest was made by the local shop, Corcoran's, but was not responded to by An Post until the announcement that the decision had been made.

That is not good enough. How will elderly people who do not have transport access services to the local post offices in Foxford or Ballina if this post office closes and there is no public transport? Local businesses or interested parties should be allowed run the post office on a trial basis and let the people of Knockmore demonstrate the need for the post office in the area. That would be transparent, measurable and would not need to be confirmed until the end of that two year period.

I ask the Minister to instruct An Post to conduct a public consultation not just in Knockmore, but in any other area of the country. There is a need for transparency, openness and consultation but in this case we have an example of the direct opposite.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I thank the Ceann Comhairle for selecting this issue. I join with Deputy O'Mahony in praising Billy and Ann Rodgers for the service they have provided. There has been a post office in Knockmore since 1847. That is the tradition we are discussing. As Deputy O'Mahony stated, there are 1,200 homes in Knockmore with a large and vibrant parish and, therefore, commercially An Post is turning its back on a revenue raising opportunity and a revenue source that has been very good to An Post and its predecessor for all of that time.

Knockmore parish has done its bit in terms of the reorganisation of postal services in that two of the three post offices in the parish have already been closed. As other Deputies stated, a business in the area has indicated it is willing to consider hosting the post office and if An Post was to bother advertising that I have no doubt that other community-based commercial interests would come forward with the same proposals.

I accept this is an operational issue for An Post but the Minister is the shareholder. He represents shareholder interests in the organisation, and shareholder interests in any organisation seek to ensure that the commercial income is maximised. However, in the case of An Post the commercial income should be maximised with respect and an acknowledgement of its community responsibility.

Everybody can win in this case. If An Post turns its back on the parish of Knockmore, it is turning its back on substantial revenues as well as on its community responsibility, which it must adhere to for having the monopoly on the various services. The parish of Knockmore has shown itself on the football field, in boxing and in many areas to be a fighting parish. An Post should be aware that it has a fight on its hands but in fighting for this the parish of Knockmore, if it is given the opportunity, will show that the investment it wants to make in its post office is a commercial one. We are not doing anyone any favours in that respect. This is not a public service. It is an investment that will show a commercial return. That is what we want An Post to do. That is what the Minister, as the chief shareholder in the organisation, should seek. Rather than it being an operational issue for An Post, we need the Minister to intervene and ask it the reason it is turning its back on this revenue.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I thank the Deputies for their comments and assure them that the Government is committed to a strong and viable An Post and supports its maintenance of the maximum number of economically viable post offices. I take particular note of what the Deputies said regarding the length of time the post office has been open, the services it provided historically and currently in the community and the impact this is having on the people. I will bring their concerns directly to the attention of the Minister, Deputy Rabbitte.

The Government also appreciates the importance of the rural post office infrastructure. The programme for Government recognises that the universal postal service is an essential public service, especially in the case of rural communities and those disadvantaged communities affected by the digital divide. The importance of the postal business and the post office network was recognised by Deputies during the comprehensive debate on the Communications Regulation (Postal Services) Bill last year. Deputies will be aware, however, that the commercial operation of An Post's post office network is a matter for the board and management of the company and not one in which the Minister for Communications, Energy and Natural Resources has a direct statutory function.

An Post advises that on the resignation of a postmaster, a post office is reviewed in terms of business volumes and the geographical proximity of neighbouring offices. On that basis, An Post takes a view on whether or not the post office should be advertised. It is understood from An Post that the closure scheduled for the post office at Knockmore, County Mayo with effect from the 1 May arises due to the retirement of the postmaster there. Customers will be transferred to offices in Foxford, approximately four miles away, and either of An Post's two offices at Bury Street and Ardnaree in Ballina, which is approximately six miles away. Department of Social Protection customers will be catered for at Foxford initially but will be assisted in moving to any other post office of their choice. An Post advises there will be no change to mail services locally.

I fully understand the concerns of Deputies about post office closures or any changes to services offered in their constituencies, and concerns about the financial viability of the post office counters service in general. The importance of An Post to rural communities is well recognised and as a company it must seize all opportunities to innovate and remain relevant to its local customer base. An Post management has succeeded in growing business at post office counters generally but the counter business is not immune from the threat presented by the development of electronic alternatives to traditional counters services.

It is clear that An Post is facing challenges in both its postal and mail business. It must build on its intrinsic advantages such as the scale of the network, brand name and strong connection between postmasters and their local community to re-invent itself as a dynamic and sustainable business. I understand that the Minister, Deputy Rabbitte, is confident that the management and staff are capable of doing that.

The Minister will continue, where possible, to facilitate business expansion by the post office counter business because it is only that growth that can provide a sustainable basis for its survival. In this regard, the Minister will pay particular attention in the months ahead, with our colleagues, the Ministers for Finance and Social Protection, to the development of a universal basic bank account product which could be accessible in the post office network nationwide.

The Government recognises the strategic importance of the postal sector and the central role that An Post plays. Reflecting that role, it has been long-standing policy that An Post remains a strong and viable company in a position to compete in a liberalised market and continue to provide a wide range of services to both urban and rural communities.

Photo of Michelle MulherinMichelle Mulherin (Mayo, Fine Gael)
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I thank the Minister of State. I would like to think the Minister would take An Post to task for the manner in which it is conducting its business on this issue. That is at the core of the problem. It is not a private company that can keep all its affairs private; even private companies cannot do that. It is working to deliver a service we see not only as economic, but that has social value. It should be consulting with the community, particularly in a situation where somebody is willing to take over the service. Sadly, in many rural communities there is nobody to do that because of rural decline and an aged population. That is not the case here and as has been described, this is a vibrant community that is very interested in holding on to this service. We need figures to show the reason this is not viable but none of that is forthcoming. It appears to be in keeping with some general policy but I would like it to be particular because the people of Knockmore are particular about retaining their service.

Photo of John O'MahonyJohn O'Mahony (Mayo, Fine Gael)
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I thank the Minister of State for his reply. I understand it is not a ministerial decision to close any post office but whatever decision is taken must be taken in a transparent and open way, with consultation. That is not happening and that is relevant in Knockmore. In terms of the financial crisis, we saw last week the likelihood that some banks will close in various small towns. In terms of the household charge, for instance, many people would like to pay it in their local post office but that has not been possible. That is a wider debate but the people in Knockmore have not been given a chance to access some of the services the Minister of State spoke about and which I would support putting into the network of post offices. I understand the Minister cannot reverse the decision but he can ask the board to re-examine the position, and I ask the Minister to do that.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I thank the Minister of State for his response. There are ministerial representatives on the board of An Post to represent the interests of the Minister as a shareholder. The Minister of State referred to facilitating business expansion by the post office counter business but An Post is turning its back on 4,000 customers by closing the post office. That will not expand any business.

Expanding the services available within An Post is all very fine, but when the source of the service is closed it flies in the face of such a policy. An Post has replaced post offices in smaller communities in recent times across Mayo. We want it to put an advertisement in a newspaper and ask people if they are interested in providing a post office service. At least then there would be some sort of transparency. An Post has given the Minister of State a response stating it is only four miles to Foxford or six miles to Ballina. Older people who do not have buses or a DART service are affected. Families are already stretched in terms of providing services. We talk about expanding the business of An Post but this policy will lead to a decline in its business.

If any business turned its back on 4,000 customers, as a shareholder the Minister has the right to ask questions. It is not an area of overarching ministerial responsibility. The Minister represents shareholders and has the right to ask why An Post is abandoning potential customers.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I would be very happy to take the views of the Deputies and convey them to the Minister, Deputy Rabbitte. I know he will take account of them and ensure they are communicated directly to An Post. Would it make sense to arrange a meeting with it to discuss the business propositions made by the Deputies? If there is an alternative it ought to be considered. If it has not been aware of what it might be-----

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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It is aware of it.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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There may be information which has not been given, apart from sensitive commercial information, such as the number of transactions and activities which should be made available.

Photo of John O'MahonyJohn O'Mahony (Mayo, Fine Gael)
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There is a public meeting in the village on Friday night and I expect An Post will be invited to it. It will have an opportunity to explain, in a transparent way, what has happened.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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It should be accountable to the community. I will ensure the views of the Deputies are expressed to the Minister and communicated to An Post.