Dáil debates

Thursday, 17 July 2014

Ceisteanna - Questions - Priority Questions

Post Office Network

9:55 am

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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4. To ask the Minister for Communications, Energy and Natural Resources the actions he has taken to secure the future of our post office network; his position regarding the impact on local post offices of the use of electronic transfer for social welfare payments; and if he will make a statement on the matter. [31678/14]

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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What actions does the Minister intend to take regarding the future of the post office network? The network is under constant threat due to the impact of electronic transfers in the social welfare payments system. Will he give his opinion on the future of the post office network?

Photo of Alex WhiteAlex White (Dublin South, Labour)
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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 maintain a nationwide customer-focused network of post offices in the community. Proposals for a whole-of-government review of the scope for providing additional public services through local post offices were presented to the Cabinet committee on social policy at its meeting on 28 April last. In its initial consideration, the committee agreed to the proposal for a review of the scope for providing additional public services through the post offices. This process is under way and my Department is examining the initial responses received from other Departments with a view to engaging in further discussions with the relevant Departments, as necessary, with the aim of presenting a final report to the Cabinet committee in September. The impact of the use of electronic transfer for social welfare payments on local post offices is a factor to be considered as part of this process.

An Post has undertaken a programme of capital investment in the computerisation of the post office network, including the automation 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 for both electronic transactions as well as the more traditional over-the-counter transactions. Any such developments would be subject to public procurement requirements. I envisage a strong future for the network by using its existing strengths to remain a significant player in the provision of Government, financial and other services.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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There has been huge debate both inside and outside this House about the post office network and what it requires. We all support the post office network but despite that, the network across the country is dwindling. It is time for a fundamental shift in policy. Earlier we referred to the obligation on the ESB to maintain its network deep in rural communities, which is an obligation imposed on the company under statutory instrument and legislation. It is time we examined the memorandum of understanding for the establishment of An Post and its management and governance and told An Post that it must maintain the network. It must be provided for in statute that An Post must maintain the network in rural communities. Then it can go after the business to make those post offices viable. What is happening at present is that services are being withdrawn, piece by piece, from An Post and the post offices are becoming non-viable both for the postmasters or the postmistresses and An Post. We must fundamentally change the way An Post is established to ensure there is a statutory obligation on it to maintain the network. After that, it can pursue the business.

Photo of Alex WhiteAlex White (Dublin South, Labour)
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The Deputy makes some interesting points which I am sure will feature in the ongoing debate and consideration of this issue. As he correctly pointed out, it has been debated extensively in the Dáil. An Post has the largest retail presence in the country. Ireland has one of the most extensive post office networks per head of population in the EU. There are 1,147 active company and contractor operated post offices and 145 postal agents. A total of 65% of post offices are located in rural areas, bringing important local services to local communities in rural areas of the country. The Deputy mentioned that the number is dwindling. There have been some closures but it is interesting to note that although there were 197 closures between 2006 and 2010, from the end of 2010 to date only 17 closures have occurred. It is important to bear that in mind, but I accept the points the Deputy makes.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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I have studied this back and forth. There has been much talk about giving State business to An Post. The driver licence system should have been given to An Post and the terms of reference for the tendering should have been changed to ensure it did go to An Post. What should emerge from the whole-of-government report is that every State service should be geared towards An Post. Of the 17 post offices the Minister mentioned that have closed, I believe three of them closed in north Cork over the past six or eight months. We must fundamentally change how An Post is set up and governed. We might talk about putting Government services in An Post or making it a special office for Government services but unless we compel the State company, An Post, to maintain the services deep in the rural communities, that 65% of post offices will dwindle further over the years.

Photo of Alex WhiteAlex White (Dublin South, Labour)
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I accept the Deputy's point regarding the post office network and this issue being an important matter of public policy. However, we also live in a world that is characterised by public procurement rules, and we must live with those rules. I doubt that anybody is suggesting that such important rules should be bent or moved in a particular direction. I believe the two worlds, the world of the rules governing public procurement on the one hand and the important public policy consideration that the Deputy mentions on the other, can co-exist. How best to balance these imperatives is the issue the Cabinet committee on social policy is addressing. As I mentioned earlier, that Cabinet committee will return to this matter in the autumn. The Deputy should be reassured that the Government strongly believes in the continuing role of the post office network in providing important services in local communities.