Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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105. To ask the Minister for Communications, Energy and Natural Resources if he will provide an update on the workings of the Post Office network business development group and when a report on its findings will be available. [23468/15]

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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As this question, which seeks an update from the Minister on the workings of the Post Office network business development group and when its report will be available, was submitted prior to publication of the report this morning I am sure the Minister's response will focus more on the findings of the report than on when it will be available.

Alex White (Dublin South, Labour)
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Postal services play an important communications role, serving the needs of domestic and business customers alike. However, the postal sector is undergoing systemic change with migration towards electronic communications, resulting in significant core mail volume decline year-on-year. It is Government policy that An Post 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 post office network has many strengths and can play an important role in the communications sector into the future. For example, it has the largest retail network in the country and was fully computerised some years ago. As a result, it can fill a vital role in the nationwide provision of over-the-counter services to the public, State services and other financial and commercial transactions.

In recognition of the changing commercial environment, I established the Post Office network business development group in January of this year to examine the potential from existing and new Government and commercial business that could be transacted through the post office network, as well as identifying new business opportunities for the network. I am firmly of the opinion that the work of the group is key to supporting the future sustainability of the network, which point I made to the postmasters at their annual meeting on 3 May last. The initial report of the group, published today, will now be opened up to consultation, the results of which will contribute to the final report in due course.

I envisage a strong future for the post office network, through utilisation of its existing strengths to remain a significant player in the provision of government, financial and other services.

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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I look forward to reading the report in detail. I understand that all Departments were party to the Post Office network business development group, including and, perhaps primarily, the Department of Social Protection. I have received correspondence from various post offices, the most recent from the post office in beautiful Easkey, County Sligo, which is on the Atlantic coast. The correspondence included a form issued by the Department of Social Protection, which states:

The Department recommends direct payment to your current, deposit or savings account in a financial institution. This is the best payment option for you, as you can receive your payment at a time and place that suits you. The account must be in your name or jointly held by you.

Alex White (Dublin South, Labour)
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I understand that the Department of Social Protection recently amended its old age pension application forms to reorder the list of payment options available to new beneficiaries, putting EFT payment first and relegating payment via the post office second. This is because electronic payment is often more convenient for recipients, as well as being cheaper for the Department to process. I understand that the revised form was sent to An Post for distribution at post offices and that this is a requirement under its contract with the Department of Social Protection. I further understand that this has attracted criticism from the Irish Postmasters Union. The form is for use by new recipients only so that the impact will not be significant, at least not initially given that the majority of new benefit recipients choose to receive their payments via EFT through the banking system.

I am advised that this move by the Department of Social Protection is in line with its move towards electronic payments, as there is a significant cost saving associated with such payments relative to over-the-counter cash transactions.

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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The Department of Social Protection payments constitute up to one third of the business of post offices and without that business, post offices will close. If people are not going in to do business, they will close. Did the development group consider the possibility of EFT capability within the post office network? I agree that we cannot be like Canute in holding back the tide with a rake. However, we must support this accessible network in delivering a public service. It does more than deliver post. It is a network of accessible offices in prime position to provide public, commercial and semi-commercial services, but it needs to be developed if it is to do this. Are we looking at ways and means of ensuring post offices within the network can carry out EFT transactions in the short to medium term?

Alex White (Dublin South, Labour)
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That is exactly one of the things we need to do and it is uppermost in our minds. The shift towards electronic payments, as recognised by the IPU, needs to be made to enable the post office network to compete with the banks and in order that the post office network can be as good in transacting this business as any other outlet. The Deputy is right in that regard. This illustrates the importance of the business development group and its interim report which was published today. Among the areas outlined in the report in terms of potential include over-the-counter transaction services for new products such as BillPay on behalf of various organisations and tax payment services for the local property tax on behalf of the Revenue Commissioners. New services for Departments could also be provided such as client identity authentication services, back office and outsourcing services such as those provided by An Post for the Revenue Commissioners, as well as banking and other financial services such as those provided by An Post on behalf of AIB. We want to ensure An Post can provide these services in an efficient way and in the way people nowadays want to avail of them.