Mick Wallace (Wexford, Independent)
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I am sure the Minister is well aware that keeping small institutions open in small villages is becoming a challenge. There is an ideology driving much of government thinking in the developed world, and at its core is the idea that small institutions, services and outlets are only sustainable if they are economically sustainable. The notion that a premises might have a social value, which is generally not a quantifiable commodity, is fading off the radar. We do not value something unless it has monetary value, which is leading us to a point at which we know the price of everything and the value of nothing. There must be an active desire on the part of the State to keep our villages alive. Many of these institutions are interconnected, and when one is closed it threatens those that remain. That false economic philosophy, which fails to take on board the social dividend, must be challenged if we are to avoid turning rural Ireland into a wasteland. The cost of such closures to the people is immeasurable, sowing the seeds of economic failure, unemployment, isolation and social problems too numerous to mention.

Duncormick post office in Wexford probably would not even be up for review by An Post but for the fact that it was closed for review, and now An Post is considering not reopening it or allowing a tender process to commence in the village.

There is much anger in the village of Duncormick at the idea that it might not have a post office. The nearest post offices are 6.6 km and 7.2 km away. There are many old people in the area who do not have transport of their own and who are literally begging for lifts to get to the post office to carry out any business they may have. I know the Minister is at pains to stress that An Post is a commercial State body and that it must make ends meet, which is understandable. It has more than 1,000 post offices but I suspect it would like fewer. An Post might argue that it would be more economically sustainable if it had fewer units, but given that it is State-owned and the Minister has influence over it, it is important that we do not lose sight of the social value post offices offer these small communities.

We have seen the closure of post offices, Garda stations, small shops, small pubs and small businesses and there is the threatened closure of small schools because there are not enough pupils. It is a dangerous path to go down. The Government needs a strategy. If institutions do not appear to be sustainable and if the figures do not add up, we must help make them more sustainable. Retaining life in these villages is very important.

Pat Rabbitte (Dublin South West, Labour)
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I agree with a great deal of what Deputy Wallace said. In my recent reply to a similar question from him, I set out that it is my clear objective that An Post remain a strong and viable State company, providing high-quality services on a nationwide basis through a network of economically viable post offices, and this remains my position. I know this objective is shared on all sides of the House. However, I stress that the company must be, as the Deputy said, in a sustainable and viable financial position to ensure this.

I remind the Deputy that An Post is a commercial state company with its own board and management and their strategy and decision-making must be formulated in this context. Furthermore, operational matters are the responsibility of the board and management and I have no statutory function in this area.

The Government is a strong supporter of the network through the range of services it provides, which include social welfare payments, State savings and Passport Express. An Post has also been successful in leveraging its retail footprint to provide other services such as banking and insurance, which support continued easy access to those services for local communities. I know the Deputy will join with me in congratulating An Post on winning an arrangement with the Revenue Commissioners to collect the property tax. That will help the revenue position of An Post and it is the kind of new service it can provide better than anybody else, with a network of 1,138 offices throughout the country.

I fully understated the Deputy's concern about the viability of rural post offices and the importance of the post office to local communities. It should be noted that An Post is currently facing many challenges not just financially but from the development of communications technologies. Any decisions it may take must be considered in the context of maintaining a sustainable post office network. As shareholder, however, I have a strong concern in terms of the ongoing commercial position of the company and I regularly liaise with it in this regard.

I firmly believe An Post has many strengths. It is a trusted brand, has the largest retail presence in the country and is closely integrated with local communities. I have impressed on the company the need to further exploit its unique position in this regard and have been supportive of its attempts to diversify its income streams and to win a wider range of commercial contracts offering higher margins. I welcome the progress An Post has made towards diversification, including the announcement that following the decision of AIB to close a number of branches, an extended range of AIB services is available through post offices in the locality of the closures. This is beneficial not only to An Post as a commercial body but also to the local communities.

My Department and I will maintain ongoing contact with the board and management of the company to work with them on our shared objectives in light of the challenging environment they face.

Mick Wallace (Wexford, Independent)
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It is good that post offices are diversifying, and the Minister mentioned the closure of AIB branches. The idea of our State-owned banks, or our pillar banks, providing a personal service is fading fast and we will see more branches closing than opening. There will be even more work for post offices.

The post office in question is the last post office in this parish. There were two, but the Cleariestown office closed a couple of years ago. There are three post offices in the neighbouring parish. The local people have organised a public meeting tomorrow night as they are really upset at the idea that they may not have a post office in the future and that there will be no post office in the parish. The post office most people are using now is in Bridgetown, but there are no banking facilities there. Although it is a big loss to a small number of people, because many go to the nearest town to do their banking, it means a lot to people who are immobile and who are not computer-literate.

Duncormick post office has an average of 800 transactions per week, which is not a large number, but surely it is enough to make it sustainable. I asked An Post if it would cost money to keep Duncormick post office open but it said it would not. An Post has more than 1,100 post offices and I asked if it wanted fewer than 1,000. The answer I was given was "Probably, yes" but at the same time it has admitted it would not cost it money to keep Duncormick post office open.

I know An Post is a commercial State body with its own board and that it makes its own decisions, but nobody has as much influence and control over it as the Minister. I ask him to look favourably on Duncormick's retaining its post office.

Pat Rabbitte (Dublin South West, Labour)
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I have passed on to An Post the concerns about Duncormick post office, in particular, which the Deputy mentioned. Contractual issues arose there and I understand notices have been posted locally inviting submissions from the local people. An Post has guaranteed me it will take them into account in making whatever decision it eventually arrives at, and that consultation process is quite deliberate.

The Deputy and myself are at one in welcoming the diversification that has recently taken place in the post office. More of that needs to happen as its core business has been seriously affected by electronic substitution. It is as simple as that. The volume of letters has been falling. One can call it progress, technology or whatever one wishes but that is the reality of the environment in which An Post is trying to survive.

I am sorry that although I gave the Deputy the opportunity to break the news about the collection of the property tax, he did not rise to his feet to welcome it. I thought he would welcome the fact that the facility is being made available. It demonstrates the entrepreneurial instinct of An Post and it is a positive step.