Willie Penrose (Longford-Westmeath, Labour)
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I thank the Ceann Comhairle for selecting this topic for discussion, because it is important to people throughout the country, especially those in rural areas. Prior to Christmas, the Minister for Social Protection, Deputy Burton, in the company of Mr. Christoph Mueller at the GPO, announced the renewal of the contract relating to the delivery of cash payment services to customers in receipt of social welfare. Said contract is worth €50 million per annum to An Post and it will obviously secure the position of sub-post offices throughout the country. The contract is for two years initially but can be renewed. Obviously, however, we must ensure the need to sustain post offices is recognised.

The programme for Government contains a specific commitment in respect of ensuring the sustainability of the post office network, which is a national and strategic asset. Commitments are easy to write and verbalise and they can easily morph into aspirations. To put flesh on the bones of the commitment to which I refer, there is a need for the Government to produce a comprehensive plan of action in respect of this matter. A whole-of-Government approach will be required in this regard, with each Department being obliged to have an input or make a submission. When this process is complete, the Government would formulate a cohesive plan of action and produce a report within six months or so. This matter cannot be placed on the long finger. A report must be produced, action must be taken and results delivered. All Departments should be obliged to identify new business opportunities they intend to pursue or existing businesses with which they are involved, the services relating to which could easily be provided by means of the post office network.

As a Deputy who represents a rural constituency, I have called for many years for the provision of a new banking service for people throughout the country. We are all aware of the many bank branches and sub-branches throughout the country - including in Westmeath and Longford - that have been closed. This has had a hugely negative impact on rural areas. The Government should examine the possibility of providing a banking service through the post office network and operated by An Post. Those who run An Post need to wake up and smell the coffee and be creative and forward thinking. They must rise to the challenge, and rather than always announcing the closure of post offices, they should seek to install electronic funds transfer facilities at all their 1,150 outlets. An Post offers a range of savings products on behalf of the State, via the NTMA. These products are very attractive in the context of encouraging people to save money. However, An Post must expand its operations and provide current account facilities, either on its own behalf or on behalf of certain of the banks. Some post offices provide such facilities but there are huge opportunities in the context of providing services on behalf of Departments, semi-State bodies and local authorities.

Such areas should be considered with an open mind. A very great volume of business is available by means of online marketing and sales. An Post could play a key role in developing capacity to capture this niche market opportunity and be a delivery agent for same. The Government in conjunction with An Post should invest significant capital in these developments in the context of economic and social policy. The two policies cannot be divorced. Social policy is very important and it is very difficult to quantify it on a balance sheet. This is the problem with straight-line economics, quantification and cost-benefit analysis which are unable to capture and encompass the very important aspect of social policy. It discounts social policy and that is the big failing. The post office network has approximately 1,150 post offices available to carry out this work and with a high level of contact with the public. It provides services to 1.7 million people each week, including 800,000 social welfare customers. It is also an important focal point for public interaction.

Last March, the Joint Committee on Transport and Communications prepared a detailed and comprehensive report on promoting the sustainable future for the post office network. It represents a very good starting point for the production of a Government-led plan. The committee made a number of key recommendations which I support and I reiterate here. People have a genuine affection for the post office and the service it provides. Very often it is the main point of contact for people who live in rural isolation in particular. It plays a central role in the lives of people across rural and urban areas which explains why this is such an important issue. I urge the Minister of State to go back to the Minister to ensure that a plan is provided to tackle this problem once and for all.

Fergus O'Dowd (Louth, Fine Gael)
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On behalf of the Minister for Communications, Energy and Natural Resources, I wish to reassure the Deputy it is Government policy that An Post remains a strong and viable company, in a position to provide a high quality, nationwide postal service and to maintain a nationwide customer-focused network of post offices. Operational matters and the role of developing commercial strategies for the post office network are matters for the management and board of An Post and not ones in which the Minister has a statutory function. However, the Minister has a strong concern about the ongoing commercial position of the company and he regularly liaises with the company in this regard.

I refer to a plan for the future sustainability of the post office network. The Minister welcomed last year's report of the Joint Committee on Transport and Communications on promoting a sustainable future for the post office network which he found both positive and ambitious. The Minister agrees with the thrust of that report which looked at the configuration of the post office network, the importance of Government contracts and suggestions for extra business for post offices. The pivotal financial and social role of the post office in local communities was acknowledged. The desirability of channelling more Government business through the network is an issue which is often raised. However, any such developments would need to be in compliance with EU procurement obligations and this aspect was acknowledged by the committee in its report.

An Post has many strengths and has the largest retail presence in the country. The Minister has impressed on the company the need to further exploit its unique position in this regard. He has been supportive of its attempts to diversify its income streams and to win a wider range of commercial contracts offering higher margins. In the context of the public sector transformation agenda, the Minister will continue to engage with his colleague, the Minister for Public Expenditure and Reform, in consideration, as appropriate, of the post office network for transactional elements of the business of Departments and agencies. He has stressed to his Government colleagues that the network is ideally configured for over-the-counter transactions. Any such developments would need to be subject to public procurement requirements as appropriate. Having invested in the computerisation of all post offices, the post office network is well positioned to become the front office provider of choice for Government and the financial services sector. Overall, the Minister sees a strong future for the network by using its existing strengths to remain a significant player in the delivery of a wide range of services on a nationwide basis.

Willie Penrose (Longford-Westmeath, Labour)
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The Irish Postmasters' Union commissioned a comprehensive report prepared by Grant Thornton. The report outlined in detail the possibility of expanding the range of services provided by An Post post office network. It set out a compelling case for the new services contracts as identified. An Post has the capacity to facilitate additional services. The recommendation from the joint committee was that the post office network could assume responsibility for the processing of motor tax renewals and hospital charges as well as water charges, property tax, business rates, rents and other Government payments services and the potential of the post office network to deliver a basic payment account as part of the financial inclusion strategy. I ask if there is some innate opposition at Government level. All Ministers, when asked, are wholeheartedly committed to ensuring the viability of the post office network so I ask where is the problem.

There is an opportunity to make greater use of the post office network and we should set about seizing these opportunities. An Post has to be proactive and I acknowledge it has diversified into partnerships with AIB, One Direct and Aviva Insurance. The post office also facilitates payment of the property tax. It faces a challenge in the face of the significant decrease in letter and parcel post and the threat from electronic communications such as e-mails and texts. All the relevant Departments must recognise the social aspect of the post office network and this must be embedded as a core objective. The Departments should co-operate in the preparation of a comprehensive plan in conjunction with the board of An Post. I acknowledge the independence of the board and the need to comply with public procurement regulations. The Government should set about this work and report within six months. This would be a vital signal to the post office workers and the sub-post offices in rural Ireland because they feel threatened by the likes of letters from the Department of Social Protection indicating that payments for jobseeker's allowance and pre-retirement allowances will be lodged directly to bank or building society accounts. This is a silly policy. Clients should have the option of using a post office. I ask the Minister for Social Protection to ensure this option is available. Things wither and die if they are not used. This bureaucratic decision will mean that the post office may not have an opportunity to continue doing such business and continue to survive.

Fergus O'Dowd (Louth, Fine Gael)
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I thank Deputy Penrose for his views and I assure him that I will bring them to the Minister. In 2012, revenue earned from Government business amounted to over €179 million, consisting of mails income at €50 million; election and referendum, €4 million; Department of Social Protection, €59 million; NTMA, €54 million; television and dog licences, €12 million; and other revenue, €0.8 million. As Deputy Penrose mentioned, there have been significant arrangements between An Post and AIB, and with Aviva, as well as the facilitation for payment of the property tax. Following a competitive tender process, An Post has been selected by the Department of Social Protection as the provider of over-the-counter cash services for social welfare customers. Deputy Penrose has made very valuable points in his contribution. He pointed out the social and community importance of retaining the post office network and the strong bond that exists between the post office and its customers, in particular, older people. An Post has many strengths and it is the largest retail presence in the country. The Minister will continue to impress on the company the need to further exploit its unique position in this regard.