Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

87. To ask the Minister for Communications, Energy and Natural Resources if he will provide an update on Government policy to maintain the existing post office network nationwide; and if he will make a statement on the matter. [31800/15]

Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am seeking an update from the Minister for Communications, Energy and Natural Resources on Government policy to maintain the existing post office network nationwide.

Joe McHugh (Donegal North East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for his question. The post office network plays an important role in serving the needs of business and domestic 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 remains Government policy that An Post remain a strong and viable company.

In recognition of the changing commercial environment the Minister established the Post Office Network Business Development Group, of which I a member, earlier this year. The group's remit is to examine the potential from existing and new Government and commercial business that could be transacted through the post office network. The group presented its initial report to the Minister in May 2015 and outlined, in summary, that the future of the post office network would be best secured by seeking out opportunities in the following areas: financial services, including basic banking for the unbanked, Government services, social capital and enterprise, and white labelling of financial and other products.

To gain further insight into these areas, a public consultation exercise was held from 16 June to 28 July. Interested parties were invited to submit their views on the initial report. A total of 16 responses were received, and a summary of these responses together with the initial report is published on the Department's website. It is clear from the responses received that there is a strong public desire to maintain the nationwide network of post offices. While An Post remains a trusted brand, with 1,132 active company- and contractor-operated post offices as well as 125 postal agencies, it needs to further diversify into areas such as financial services and continue to develop attractive products and services that customers want and need. The consultation responses will assist the group in identifying opportunities that can benefit the post office network and will inform the final report, which I expect to be submitted to the Minister later in the autumn.

Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for the reply. The post office network and its maintenance have been matters of debate or discussion in this Chamber for 20 years or more. I will be bringing forward legislation - I hope it will be taken in this Dáil session - that will change the memorandum of understanding of An Post to ensure there is a universal obligation for An Post to maintain the business network as it currently is. Anything else only amounts to paying lip service to the post office network. I have always said that unless we have measures enshrined in legislation to the effect that the post office network must be maintained, retail outlets in communities throughout the country will continue to dwindle. We have seen what the Department of Social Protection has done in recent times. In a debate in this House in early spring of this year, we were informed by the Minister of State in that Department that the letters in question had been withdrawn by the Department. However, all the new social welfare reforms encourage people to use banks rather than the post offices. The point I am making is that regardless of the rhetoric or goodwill that exists in terms of the post office network, if the Government continues to encourage the preference for banks rather than using the post office network, we are at nothing.

Joe McHugh (Donegal North East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

We had the debate in the House regarding the letters that went out. I believe we were in unison in that regard. The option of the banks was difficult-----

Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

They are still going out.

Joe McHugh (Donegal North East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There was a difficulty, and it was expressed on both sides of the House. The social welfare contract is the kernel of the matter and is critical to post offices at the moment. We have to look at the broad spectrum, including services that are available in other departments within counties.

Let us consider the consultation process. Deputies can see all the submissions on the Department's website. We should listen to the post office people themselves. A campaign is under way at the moment as part of which post office proprietors are inviting politicians in. I have met a number of them. In one particular town a postmistress came up with the idea of having a one-stop shop and tourism information outlet along the Wild Atlantic Way. We have to look at all the options. We have to look at footfall, but we have to look at the bread-and-butter issues as well, and the Government contracts are critical to that.

Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The post office network will not be maintained unless the social welfare service is the key anchor tenant of the post offices, for the want of a better phrase. It was stated previously that the encouragement to use banks rather than post offices would be withdrawn. Will the Minister of State take this matter back to his Department and make the case for withdrawing these statements in the vast majority of new social welfare forms which encourage people to use banks instead of post offices? Will the Minister of State do that? When the small tranche of legislation that I will introduce to ensure a universal network of post offices materialises, will the Minister of State and his Department accept it?

Joe McHugh (Donegal North East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Minister for Social Protection, Deputy Joan Burton, is clear on this. A communiqué went out in the aftermath of the sending of the letters. She has been clear in saying that no further letters will go out. That answers the first question.

The Minister for Communications, Energy and Natural Resources, Deputy White, will be looking at all legislation that comes before him in this House. No doubt we can have a conversation at that time.