Robert Troy (Longford-Westmeath, Fianna Fail)
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I will give one minute to my colleague, Deputy Eugene Murphy, if that is okay.

Bernard Durkan (Kildare North, Fine Gael)
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Is that agreed? Agreed.

Robert Troy (Longford-Westmeath, Fianna Fail)
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I welcome the opportunity to raise this issue on the floor of the Dáil and I thank the Ceann Comhairle for selecting it.

The future of the An Post network - both the post office network and the mail distribution network - has never been more uncertain. I will discuss the Athlone mail distribution centre in particular. It is regrettable that the responsible Minister is not present to answer questions, given the fear among staff in Athlone. I have met some of them and spoken with many more. The Athlone mail centre is ideally located in the heart of the midlands. It has excellent transport links to all parts of the country and is located in the same business park as DPD Ireland, which recently doubled its premises in size to form its national hub. That shows how ideally located the area is. The mail centre's 183 staff are extremely efficient, having won many awards for their work. Not only that, but they have been flexible. In the face of decreasing volumes of mail in recent years, they have collaborated to achieve significant staff savings.

I understand that consultants have been employed to examine the future of the mail distribution network.

The only centre those consultants have not visited is the mail centre in Athlone. I do not think that is fair or right. At the very minimum, I want to receive a guarantee today that those consultants will engage with the management and the unions representing the workers in Athlone's mail distribution unit.

Second, in regard to the An Post network, who is the responsible Minister? It was the Minister of State, Deputy Michael Ring, but, seemingly, he now does not want it and it is going back to the Minister, Deputy Denis Naughten. Is that true and, if so, when will the Minister take responsibility? Does the Government agree with the sentiments expressed by the CEO of An Post in regard to the number of closures needed? Does the Government feel the An Post network is an asset and, if so, is it going to invest in it? The Irish Postmasters' Union signed up to the Bobby Kerr report under the last Government. Its members are wondering when the recommendations of that report will be implemented, because we should be implementing them now, not analysing and discussing a new report.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I support Deputy Troy in bringing forward this matter and in regard to the strong case he has made. People are worried and concerned about the Athlone mail centre. When we lose our mail sorting centres in the counties, they go to the regions. That is fine and the regional centres are doing a good job, but if we lose that, it is a big concern.

I find it bizarre and unbelievable that, yet again, not one of the Ministers is present. The Minister of State, Deputy Finian McGrath, is a good replacement and he is well able to fight his corner. However, we have been told from the start that the Ministers, Deputies Humphreys and Naughten, and the Minister of State, Deputy Ring, had responsibility for different areas of An Post, yet not one of them is present. I understand people get caught up and have to go places, and that is acceptable, but we have three Ministers and not one of them would come in here to face the music this evening.

I have said before and repeat now that this is part of a collapse that has been deliberately allowed by the Government - it wants to get rid of 40% or 50% of An Post and it will then come in with a deal. It is unacceptable. It is not the way to govern. The Minister of State should tell us what is happening and whether we are going to have any postal service in a couple of months.

Finian McGrath (Dublin Bay North, Independent)
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I welcome the opportunity, on behalf of the Minister, Deputy Denis Naughten, to outline the position in regard to the post office network and I would like to thank Deputies Robert Troy and Eugene Murphy for raising this issue. The Minister sends his apologies. I accept the Deputies' point that many people are concerned and I will try to deal with the questions the Deputies have raised.

As Minister for Communications, Climate Action and Environment, Deputy Naughten, has responsibility for the postal sector, including the governance of An Post, to ensure the company is fully compliant with the code of practice for the governance of State bodies and the governance functions included in the statutory framework underpinning An Post. Day-to-day operational matters, including decisions in regard to the restructuring of An Post and the operation of the post office network, are matters for the board and the management of the company and not ones in which the Minister has any role or statutory function.

It is Government policy that An Post remains a strong, viable company, in a position to provide a high quality, nationwide postal service, and that it maintains a nationwide customer-focused network of post offices in the community. The post office network consists of just over 1,100 post offices nationwide. The post office network is a unique social, cultural and financial institution that makes a vital contribution to the Irish economy. That is the Government position. The post office is regarded as a dependable, trustworthy provider of choice to a vast number of our citizens for State services and other commercial transactions.

The Post Office Network Business Development Group was established at the end of 2014 by the then Minister for Communications, Energy and Natural Resources to explore the potential for commercial and additional Government services which could be transacted through the post office network. Following publication of the final report of this group in January 2016, two working groups were established to progress the recommendations of the report. These were the network renewal implementation group, chaired by Bobby Kerr, and the post office hub working group, chaired by the Minister of State, Deputy Michael Ring. On foot of the reconfiguration of Departments in July last, responsibility for the post office network transferred to the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs. Arrangements are now in hand to transfer responsibility for the post office network back to the Minister, Deputy Naughten's Department, under whose remit the corporate governance of An Post rests. Mr. Kerr submitted his report in December last. The final report of the post office hub working group was published in March and its recommendations will continue to be finalised between both Departments.

Colleagues in the House will be aware that An Post is operating in a very challenging environment and is facing a very difficult financial situation. The An Post AGM was held today and the company published its annual report and financial statements for 2016. The Minister has noted the fact An Post recorded an operating loss of €13.7 million for 2016. Clearly, this is a very significant loss and losses of this scale cannot be sustained.

An Post is carrying out a fundamental review of the company with a view to identifying the strategic changes and restructuring necessary to maintain the company on a sound financial footing, and that review is nearing completion. McKinsey is assisting An Post in this review but, as I stated, any decision in regard to the restructuring of An Post is a matter for the board and management of the company. The Minister, Deputy Naughten, is of course closely monitoring the situation and the Government will be briefed once a definitive strategy has been agreed. It would not be appropriate to comment further on this process at this time.

Robert Troy (Longford-Westmeath, Fianna Fail)
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It is unbelievable. The Minister of State said: "Arrangements are now in hand to transfer responsibility for the post office network back to the Minister, Deputy Naughten's Department". It is over 12 months since the Government was formed and this is being played like a football between the Minister, Deputy Naughten, the Minister, Deputy Humphreys, and the Minister of State, Deputy Ring. No one wants to take responsibility for the network which, as we have just heard from the Minister of State, is lionised as a fabulous network in which the Government has great pride. Yes, it is facing serious financial challenges but those challenges will not be addressed by the Government shirking its responsibilities.

The Irish Postmasters' Union signed up to the Kerr report so why is not being implemented? The question is very simple. Does the Government believe this is an asset? If so, is the Government going to invest in this asset - yes or no? Does the Government agree with the position of the CEO of An Post that we are facing the closure of up to 300 post offices across this country - yes or no?

With regard to the mail distribution centre in Athlone, to which the Minister of State did not refer in his reply, does he think it right and proper that this centre, which is ideally located in the centre of Ireland, is treated in this way? It is located in the same business park which DPD, an international courier company, saw as the right location in which to double the size of its operation and offer enhanced employment opportunities. Does the Minister of State think it right and proper that McKinsey consultants, which were looking at the future of the mail distribution system, did not even engage with the management of one of the most efficient units or with the unions representing the workers? Will he give a guarantee on behalf of the Government that, at the very minimum, those consultants will engage with the management and the unions there? I understand the Minister, Deputy Naughten, visited the centre yesterday, which is welcome, but the consultants need to visit too.

Finian McGrath (Dublin Bay North, Independent)
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I have listened with interest to the important points raised by both Deputies. I also welcome the fact the Minister, Deputy Naughten, visited yesterday. The post office network plays an important role in serving the needs of business and domestic customers alike. This is at the forefront of An Post's mandate. The post office network has evolved a social role in the widest meaning of the term and this is highly valued by local communities.

The Minister, Deputy Naughten, envisages a strong future for the post office network by using its existing strengths to remain a significant player in the provision of Government financial and other services. That is a commitment.

It has also been a long-standing policy that An Post should remain in a position to compete in a liberalised market and continue to provide wide-ranging services to urban and rural communities. I accept many of the points the Deputies made that there are opportunities available to An Post to develop new or enhanced product lines for the business. The fundamental review of the company being undertaken will form the basis of the significant restructuring required, but this will take time to deliver. I will also raise the issue relating to the consultants and the mail centre in Athlone. I will bring that strong message back to the Minister.

The Minister is cognisant of the challenges ahead, but is working with the company to ensure that An Post can maintain its sustainability and relevance to customers.