Brian Stanley (Laois, Sinn Fein)
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23. To ask the Minister for Arts, Heritage and the Gaeltacht the progress that has been made in implementing the recommendations of the Kerr report; and the immediate actions being taken to preserve the post office network here. [32042/16]

Brian Stanley (Laois, Sinn Fein)
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I want to ask the Minister about the progress made in implementing the recommendations of the Kerr report and the actions being taken to preserve the post office network. We know that the current model has to change. Post offices must be made viable. I would like to hear the Minister's response to my question.

Michael Ring (Mayo, Fine Gael)
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The post office network business development group, chaired by Mr. Bobby Kerr, was established at the end of 2014 to examine the potential for new and existing government business and commercial business that could be transacted through the post office network, and to identify new business opportunities for the network.

The final report of the group was published in January of this year and made a number of recommendations to support the future sustainability of the post office network, including network renewal. On foot of this report, a post office network renewal implementation group was established to progress the recommendations arising from the report of the business development group.

The post office network renewal implementation group is independent and is also chaired by Mr. Kerr and includes representatives of An Post and the Irish Postmasters Union, IPU. The group has been examining issues such as the number and spatial distribution of post offices, branch modernisation, the streamlining of products and services, postmaster payments and contracts, and training and qualifications for post office employees.

Some of the issues under consideration are quite complex in nature. Both the Minister and I have met Mr. Kerr and members of the implementation group on a number of occasions over the past few months. The implementation group is nearing the conclusion of its work and its recommendations will be issued to the board and management of An Post in the next few weeks. It will be a matter for An Post to consider these recommendations and to bring their proposals to the appropriate Ministers for discussion.

Separately, I established the post office hub working group in July this year to identify potential models under which the post offices could act as community hubs, especially in rural areas. The group has recently concluded its talks and is currently finalising its report. In addition, my officials are also examining the potential for the post office network to deliver other services including motor tax and financial services. I intend to report to Government on these issues in the coming weeks.

Brian Stanley (Laois, Sinn Fein)
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I thank the Minister of State for his reply. I welcome the initiatives he mentioned. The Kerr group has come out with recommendations and they are being examined but time is of the essence. Unfortunately, the post office network is not in a good place. It is reckoned that 500 post offices are not economically sustainable and that has to change. The only way it can be changed is through broadening the range of services available through the post office network.

I welcome the hub working group as well. The Minister of State set out three recommendations in the House last week. The first two - the shared value post office system and the co-operative model - are well worth examining but there is a question over the mobile recommendation. I am not too sure whether that would work. However, the range of services needs to be broadened to make the post office network viable. What can be done immediately, given an interim solution is needed? If not, the network will lose more post offices.

Peadar Tóibín (Meath West, Sinn Fein)
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The post office network is probably one of the most important retail networks in the State. There are approximately 3,700 people working in it and 99% of all addresses are within 10 km of the network. It is massively important but a few weeks ago, Mr. John Daly, director of retail operations for An Post, appeared before my committee and he stated that 500 post offices are not economically viable. Using the yardstick of economic viability, they do not have a future. Another brutal statistic was reported in the past week. Only 37% of farms are economically sustainable. Those two statistics shed massive light on the damage that has been done to rural society in the past number of years. How can the Minister of State ensure that post offices become economically viable?

Michael Ring (Mayo, Fine Gael)
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The Government does not own the post offices. The network is operated by An Post and there are 1,131 post offices nationwide, 51 of which are operated by An Post. The remainder are run under contract to the company. The two working groups I mentioned are working to try to do exactly what the Deputies want. They are examining ways and means to sustain as many post offices as possible. The Government will not close post offices because it does not have control of them. That is up to An Post. Mr. Kerr has a report, which is almost concluded. He will make recommendations to An Post, which will then go to Government and the Government will then have to make decisions. Deputy Stanley is correct that there are a number of options on the table but it is like any process. I do not like some of the options that An Post and the IPU have and they do not like some of the options that I have put on the table for them. The negotiations are over and we are drafting a report and seeing whether we can reach agreement between An Post, the post offices and the Government. When we get the report, I intend to go to Government to see what we can do to help rural post offices to deliver other services, including motor tax and banking services. We are trying to do whatever we can. I am on the same side as the Deputies. I have commissioned a report and I am trying to do the best I can to keep as many as possible open.

Brian Stanley (Laois, Sinn Fein)
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I thank the Minister of State for his reply. The key concern is that while there is movement, the process could be dragged out, particularly when groups have to meet and draft reports. I take on board that the Government does not own the vast majority of rural post offices. It is important that the report and proposals of the implementation group are refined and agreed and then implemented as soon as possible along with the recommendations from the post office hub working group. It is essential that this be done quickly. There is a major opportunity because of the withdrawal of banks from rural areas. They have pulled out of small towns and even some sizeable towns in provincial areas. The banks are not providing face-to-face services, which is driving small business people crazy, not to mind creating difficulties for the elderly and people with disabilities, but this provides an opportunity. That gap needs to be filled and the post office network is ideally placed to do that and provide a community banking sector.

Michael Ring (Mayo, Fine Gael)
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Deputy Tóibín is a good chairman of the regional development committee and when An Post representatives appeared before it, they said they hoped to have the basic payment account open in the first quarter of next year. I welcome that because that is vital. It is important that the network has the cards and people will be able to use them. They are also talking about doing deals with other commercial companies but I will not go into that now. The delivery of services such as motor taxation will be vital. We will revive as many post offices as possible and put any other government business we can their way. An Post stated at the committee that 500 post offices are currently not viable. Everybody is working to try to make as many of them as viable as possible. I do not know how many we can save. I will do everything in my power. I am only trying to support the post offices in every way I can and I hope the post offices, An Post and the Government will all respond to see what we can do to save them.