Dáil debates

Thursday, 23 October 2014

Ceisteanna - Questions - Priority Questions

Post Office Network

9:50 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 his plans to secure the future of the post office network here; the impact that the Government's e-payment plan will have on post offices; and if he will make a statement on the matter. [40485/14]

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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My question concerns all issues relating to the post office network, which is at a crossroads according to the information I have received from postmasters and postmistresses around the country. Will the Minister outline his plans to secure the network's future?

Photo of Alex WhiteAlex White (Dublin South, Labour)
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It is Government policy that An Post should remain a strong and viable company, in a position to provide a high-quality postal service and maintain a nationwide customer-focused network of post offices in the community. The network stands 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. However, it would be wrong to ignore the significant challenges posed to the future of the post office network in the current economic climate while also taking account of changes in technology and general retail behaviour. The future of the post office will only be secured by its continuing to provide services that large numbers of people and business users want to use and that are sustainable in the long term.

10 o’clock

Action 6 of the policy document, Supporting Public Service Reform: eGovernment 2012-2015, states: "Public Bodies will continue to push out e-payment facilities appropriate to their customers’ requirements". In line with this, the Department of Social Protection has developed its payment strategy, which lays out a roadmap for a progressive movement towards increased use of electronic channels in the disbursement of welfare payments. The progressive change to the use of electronic transfer for social welfare payments is one factor being considered in the whole-of-Government review of the scope for providing additional public services through local post offices. This process is currently under way under the auspices of the Cabinet committee on social policy. An Post is aware that this review is ongoing and engagement with the company is being undertaken when and as appropriate. I have also discussed this matter recently with the Irish Postmasters Union, which was highly receptive to exploring avenues for securing new lines of business for the network.

10:00 am

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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The current position in respect of the post office network is that information is emerging that An Post intends to cut the remuneration packages for postmasters. Moreover, An Post appears to be playing a game in communities throughout the country. While I do not know what game it is playing, in the case of postmasters and postmistresses who are considering their future but who wish to ensure the post office will remain within their community, even though these post offices are viable, An Post will not give a guarantee that they will be tendered for or maintained. An Post is stating it is necessary to go through the consultation process and I fear this process may simply be a smokescreen or a box-ticking exercise. As I have stated in this Chamber many times previously, it is time for Members to accept the need for a public service obligation in order that the An Post network be maintained and the company should then pursue the business. Moreover, in those communities in which postmasters and postmistresses are considering their own futures, it is time for An Post to be upfront at the outset. It must agree to tender and to seek expressions of interest and that because the post office in question is viable, it will be maintained. It should stop playing this mind-game with communities nationwide.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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I will come back to the Deputy.

Photo of Alex WhiteAlex White (Dublin South, Labour)
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That is the second new public service obligation the Deputy has advocated since 9:30 a.m. Public service obligations of course must be sustained and must be paid for by somebody and whether it be the customer or the State, someone must carry the cost. That said, I understand the Deputy's point. I had a good meeting with representatives of the Irish Postmasters Union some weeks ago and they clearly were concerned about a number of issues such as, for example, the general move to e-payments because in their view, which they put directly to me, any reduction in the value of the social welfare contract would affect both their income levels and the number of viable post offices. The offices most at risk are the smaller rural offices. However, I emphasise again there is no Government plan to close post offices. I recall again that the number of post offices closed since the present Administration came to office is 17, whereas the number closed between 2004 and 2011 was 345.

The Government is taking this issue very seriously and it will be addressed by the Cabinet committee on social policy. It had an initial consideration of the network at its meeting on 28 April last. I am unsure when the next meeting is scheduled - I should have checked before coming into the Chamber - but I believe it will be within the next couple of weeks, during early November, when all these issues will be addressed.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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At the outset, the reason I used the phrase "public service obligation" is because I feel so strongly that both broadband and An Post's services should be available to every community and citizen in the State. I believe the State has an obligation to make sure these services are available, whether one lives a mile from O'Connell Street or in a remote rural area. The Minister has met representatives of the Irish Postmasters Union, which has rightly been advising postmasters and postmistresses on what is the perceived policy of An Post. Has the Minister met An Post? Has he put it to the company fairly and squarely that it appears to be playing a game with communities throughout the country in respect of their post offices? I refer to viable post offices that have transactions going through them and have a community to maintain them. It is time that An Post gave a commitment that it will seek expressions regarding tenders and will retain such a post office within a community. The Minister must talk to An Post and explain to it that if it is Government policy is to maintain the post office network, An Post as an agency of the State must continue that policy and deliver it. In addition, when will the whole-of-Government report that was commissioned by the Minister's predecessor come to a conclusion and when will Members have a discussion on it in this Chamber?

Photo of Alex WhiteAlex White (Dublin South, Labour)
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I have met representatives of An Post and I do not accept or certainly have no information available to me to suggest that a game of any kind is being played, as suggested by the Deputy. All Members wish to achieve the same outcome and want a service to be available as universally as possible nationwide. However, one must recognise the changes that have taken place in the pattern of living, of doing business and of economic activity at a local level in particular. Therefore one must try to match the compelling imperative of maintaining a post office network nationwide with the economics of the current position and this is what the Government is trying to do. The Departments and agencies of the Government must be involved in terms of the business being there for the post office network but I do not believe the post office can rely solely on that. There is an obligation all round for all stakeholders to ensure the maintenance of a viable post office network. This is what the Government intends to do and the Cabinet committee will report as soon as possible.