Timmy Dooley (Clare, Fianna Fail)
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37. To ask the Minister for Communications, Climate Action and Environment the implementation status of the Kerr report and the date by which the strategic plan for the network will be published. [49411/17]

Brian Stanley (Laois, Sinn Fein)
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40. To ask the Minister for Communications, Climate Action and Environment the policy in terms of progress towards changes in services available through the post office network or broadening services to maintain a viable network of post offices. [49250/17]

Timmy Dooley (Clare, Fianna Fail)
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The Minister will be aware of the report which Bobby Kerr was commissioned to write with the Government's blessing and possibly its financial support, with the acquiescence of the postmasters and with An Post. Bobby Kerr wrote a comprehensive report which was aimed at securing the future of the post office network. When the report was published, it was strongly supported in this House and the Government gave commitments here, both in writing and orally. Scarcely anything has happened on that report since. I note the Minister's announcement today and the Government decision, and in light of this, will the Minister give some indication as to where the recommendations of the Kerr report stand?

Denis Naughten (Roscommon-Galway, Independent)
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I propose to take Questions Nos. 37 and 40 together.

I wish to advise the House that the Government has today been briefed by me on the comprehensive strategic plan that An Post has prepared, the objective of which is to secure the long-term viability of both the post office and mails businesses and return the company to a sound financial footing.

The Government is fully supportive of An Post in its endeavours. Reflecting its commitment to sustaining a nationwide post office network and daily mails service, the Government has agreed to make available State funding of €30 million to enable An Post to move quickly in delivering on the vision of the plan, building on the momentum of actions taken this year. This funding will be provided in the form of a repayable long-term loan and is to be used to support the renewal of the post office network and the continued fulfilment of a five-day delivery service. To ensure its long-term success against the backdrop of an accelerated decline in mail volume and falling revenues, An Post is embarking on a significant transformation programme.

The current financial challenges facing An Post have been well documented and I have addressed this matter on several occasions in this House. They have arisen, in the main, from the decline in mail volumes and the move to electronic transactions in both the mail and post office network. This is a global trend and is not unique to the Irish postal service. I have taken a very proactive approach to An Post since becoming Minister for Communications, Climate Action and Environment. I acted quickly by introducing legislation to facilitate the repeal of the price cap mechanism when the drop in mail volumes accelerated in 2015 and 2016. This has resulted in an improved financial forecast for An Post for 2017 with a much lower level of losses now anticipated.

In response to the challenges facing the company, the board has overseen the preparation of a strategic plan for which it is ultimately responsible. It harnesses the company's existing strengths such as its nationwide reach, trusted brand and the relationship of postmasters with communities, both rural and urban. At the same time, An Post has recognised that it cannot and should not fight the digital agenda. It must be embraced and this is reflected in the plan, especially in the emphasis on growing the parcels business. For example, the company now offers Saturday and evening deliveries and has launched new product lines such as AddressPal and ReturnsPal, embracing the rising trend of online shopping. Enhanced banking services are becoming available through the post office network with the smart bank account. It is expected that further such opportunities will be available across the network, especially as high-speed broadband becomes widely available through the roll-out of the national broadband plan.

The Government has also committed to exploring the potential for extra Government business, including motor tax, to be channelled through the network. The local post office and local staff who deliver mail is still an important part of the fabric of local communities, especially in rural areas, and the Government recognises the importance of ensuring that this continues into the future.

Timmy Dooley (Clare, Fianna Fail)
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The question seeks to establish the Minister's vision for the future of the post office network. The Bobby Kerr report set out an action plan that did that to secure the future of the post office network. The only thing on which the Minister could be complimented is his knee-jerk reaction to An Post's calls for increased funds. On this occasion the €30 million of Government intervention by way of a loan is nothing more than a job loss announcement dressed up as some new departure. There is nothing in today's announcement to provide for the future security and viability of the post office network. The moneys that are being provided by way of a loan will be used to create a redundancy fund for those working in the mails business and will be used to pension off postmasters. I accept that postmasters who have come to the end of their working lives should be provided for at an appropriate level in their retirement, but that cannot be used as a ruse to close post offices. Post offices are more than the postmasters and postmistresses. They provide a valuable service to communities. If they are not financially viable in the short term, the State must intervene and provide State funds on a recurring basis to ensure the service is protected. That was what we needed to hear from the Minister today, in line with the recommendations of the Kerr report, but it was not there.

Denis Naughten (Roscommon-Galway, Independent)
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The €30 million which has been put into the company has been ring-fenced for the five day a week universal postal service in order that it continues to every address in the country and to support and develop services in the post office network. The nationwide reach of the post office network makes it uniquely positioned to act as a gateway to Government. In addition to the existing range of Government business, such as social welfare payments, and Passport Express, a new pilot initiative called Digital Assist will use the local post office as a digital gateway for Government business such as motor tax. That will be rolled out in ten post offices in different parts of the country initially and is in line with the recommendations of the Kerr report. The proposed strategy for An Post involves it being split into two distinct business units, An Post mails and parcels and An Post retail. Efforts to improve profitability will be targeted through growth, pricing and cost reduction strategies and are aimed at establishing a sustainable, modern and vibrant network for the future, capable of adapting to the changing environment in which it operates.

There are concerns about the closure of post offices and it is something that also concerns me. I am advised that An Post has not made any definite decision on post office closures, but the move to electronic transactions has affected the post office network.

Overall activity levels are down by 15% since 2013 and annual payments to some post offices have reduced by up to 20%. These reductions mean that the income model is becoming unsustainable, especially for postmasters operating smaller post offices.

I am extremely conscious of the value placed on local post offices in towns and villages across the country. While it is accepted that, in light of the ongoing decline in activity, the network must be renewed, it is also important that this is done in a controlled and transparent manner. Changes to the footprint of the post offices network, where they occur, should be a consequence of the modernisation process as opposed to its objective. In this regard, a protocol will be put in place to manage the modernisation of the network and the impact of postmaster exits on the local community. It is expected that this protocol would have regard to existing contract arrangements and become a blueprint for decisions on the future of the network, including the opening of new post offices as well as managing the future of a post office where a postmaster decides to take a redundancy package or otherwise to exit the business.

The protocol must also make provision to ensure that the existing business is effectively transferred in order to support the remaining network and local businesses and should take account of recommendations made by Mr. Bobby Kerr in his report. This protocol will be agreed between An Post and the IPU and these negotiations will be supported by an external facilitator.

An Post is entering into a period of significant change but this change is critical to ensuring the long-term success of our national postal operator and a sustainable post office network. Doing nothing is simply not an option. To the credit of the board, management and employees of An Post, the strategic plan sets out a positive vision for the company, positions it for the digital age and aims to put the company in a position where it can support sustainable jobs in both its mail business and post office network right across the country.

Alan Farrell (Dublin Fingal, Fine Gael)
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I will allow Deputy Stanley to come in for a minute and then Deputy Dooley to conclude.

Timmy Dooley (Clare, Fianna Fail)
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I do not think the Chairman can do that during priority questions.

Alan Farrell (Dublin Fingal, Fine Gael)
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The questions are grouped. I call Deputy Stanley.

Timmy Dooley (Clare, Fianna Fail)
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I do not think the Chairman can group them.

Alan Farrell (Dublin Fingal, Fine Gael)
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I can. I call Deputy Stanley. Unfortunately, it is only for concluding remarks. He has one minute.

Brian Stanley (Laois, Sinn Fein)
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Hold on now a second.

Alan Farrell (Dublin Fingal, Fine Gael)
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You were not here, Deputy. I am sorry.

Brian Stanley (Laois, Sinn Fein)
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I have a priority question.

Alan Farrell (Dublin Fingal, Fine Gael)
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Yes, but you were not here.

Timmy Dooley (Clare, Fianna Fail)
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I do not think you can group priority questions.

Brian Stanley (Laois, Sinn Fein)
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No.

Timmy Dooley (Clare, Fianna Fail)
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Through the Chair and on a point of order, to save the Deputy, I will just protect my corner first and then let him protect his. My understanding is that a priority question cannot be grouped. We are entitled to our time. If the Deputy has a similar question he is entitled to pursue it with the Minister. I have been around the House a while and I may be wrong on this, which is why I seek the clarification, but my understanding is that, when it comes to oral questions, a priority question is just that: it is a one-to-one between the Deputy and the Minister. The same applies to the next Deputy. Groupings, as I have always understood it-----

Alan Farrell (Dublin Fingal, Fine Gael)
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The Deputy has made his point. Thank you.

Brian Stanley (Laois, Sinn Fein)
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The normal thing would be for Deputy Dooley's question to be taken first. I am here for the second question. My question was listed and no issue was raised about it. With respect to the Ceann Comhairle, all I am expecting is that I get equal opportunity.

Alan Farrell (Dublin Fingal, Fine Gael)
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Unfortunately, Deputy, while I do not disagree with what Deputy Dooley has just said about priority questions, the fact remains that the questions are grouped. The Deputy was not here at the commencement of priority questions.

Brian Stanley (Laois, Sinn Fein)
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I was here before he finished.

Alan Farrell (Dublin Fingal, Fine Gael)
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The Deputy was not here at the commencement of the business.

Brian Stanley (Laois, Sinn Fein)
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I am not accepting that.

Alan Farrell (Dublin Fingal, Fine Gael)
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That is fine. I call Deputy Dooley to conclude.

Brian Stanley (Laois, Sinn Fein)
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I am not accepting that. My question-----

Alan Farrell (Dublin Fingal, Fine Gael)
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Deputy, it is not a matter for you to accept.

Brian Stanley (Laois, Sinn Fein)
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Mine is the second question.

Alan Farrell (Dublin Fingal, Fine Gael)
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The decision has been made. You can have a minute to respond to the Minister's response or you can take your seat and Deputy Dooley can conclude.

Brian Stanley (Laois, Sinn Fein)
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To be fair, having put in a priority question, I am allowed one minute-----

Alan Farrell (Dublin Fingal, Fine Gael)
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Let me clarify Standing Orders for the Deputy.

Brian Stanley (Laois, Sinn Fein)
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Can I clarify something with you?

Alan Farrell (Dublin Fingal, Fine Gael)
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Standing Orders allows six and a half minutes for the questions. The six and a half minutes have concluded. In fact, they concluded two and a half minutes ago.

Brian Stanley (Laois, Sinn Fein)
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And there is six and a half minutes for my question.

Alan Farrell (Dublin Fingal, Fine Gael)
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No, Deputy. The question was grouped.

Brian Stanley (Laois, Sinn Fein)
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It is a separate question.

Alan Farrell (Dublin Fingal, Fine Gael)
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A decision has been made and we have moved on from that decision.

Brian Stanley (Laois, Sinn Fein)
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I am sorry but it is a completely separate question. This is very unfair.

Alan Farrell (Dublin Fingal, Fine Gael)
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I note Deputy Dooley's remark, and I do not believe he is incorrect, but the point is that we have already done it.

Timmy Dooley (Clare, Fianna Fail)
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Can I propose a suspension of the House until we examine the facts?

Alan Farrell (Dublin Fingal, Fine Gael)
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It has been done before while I have been in the chair and while the Ceann Comhairle has been in the chair. I was present for it.

Brian Stanley (Laois, Sinn Fein)
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This is very simple. Questions are listed for priority.

Alan Farrell (Dublin Fingal, Fine Gael)
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I am giving the Deputy an opportunity to address his question.

Brian Stanley (Laois, Sinn Fein)
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We wait for five or six weeks to have them addressed. All I am asking for is my minute, a minute for the Minister to respond and a minute for me to come back in.

Alan Farrell (Dublin Fingal, Fine Gael)
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In fairness, Deputy, the Minister has given his entire response, which was two pages long.

Brian Stanley (Laois, Sinn Fein)
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That is not how I have seen it working here. The Chairman is deviating from the practice of the Ceann Comhairle and the Leas-Cheann Comhairle.

Alan Farrell (Dublin Fingal, Fine Gael)
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I am not deviating from practice.

Brian Stanley (Laois, Sinn Fein)
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You are. I have been here when questions were grouped.

Alan Farrell (Dublin Fingal, Fine Gael)
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The Deputy is wasting the time of the House.

Brian Stanley (Laois, Sinn Fein)
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All I am asking for is one minute to raise the question with the Minister and a minute for the Minister to respond. Two minutes is all I am asking for. It is very simple.

Alan Farrell (Dublin Fingal, Fine Gael)
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I will give the Deputy the minute-----

Brian Stanley (Laois, Sinn Fein)
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I am trying to be fair.

Alan Farrell (Dublin Fingal, Fine Gael)
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-----and I will ask the Minister to make a brief response.

Brian Stanley (Laois, Sinn Fein)
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A quick response.

Alan Farrell (Dublin Fingal, Fine Gael)
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If Deputy Stanley would like to take his minute, Deputy Dooley has a right to his minute after Deputy Stanley.

Timmy Dooley (Clare, Fianna Fail)
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Will I get my final round as well?

Alan Farrell (Dublin Fingal, Fine Gael)
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Then the Minister may make a final response.

Brian Stanley (Laois, Sinn Fein)
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And I will get a minute to come back in.

Alan Farrell (Dublin Fingal, Fine Gael)
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No. That will be the Deputy's concluding remark.

Brian Stanley (Laois, Sinn Fein)
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Okay. The clock shows 55 seconds now.

Alan Farrell (Dublin Fingal, Fine Gael)
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Yes, but we will give the Deputy the minute. We will not argue over five seconds.

Brian Stanley (Laois, Sinn Fein)
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My question relates to the changes in An Post and the expansion of services. As the Minister said, doing nothing is not an option. We totally agree with him on that. It is not an option. We believe that it has to be sorted. We have put forward a number of proposals. The Kerr report and the McKinsey report are sitting there. I note that the Minister announced a €30 million loan today. Will the Minister outline exactly how it can be utilised? I am not convinced I see an urgency with regard to putting in new services. The Minister said he wanted to see it become an interface with Government, which is to be welcomed. There are other areas that it could get into, particularly banking-----

Denis Naughten (Roscommon-Galway, Independent)
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Yes.

Brian Stanley (Laois, Sinn Fein)
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-----and linking in with the credit union where there has been a successful pilot scheme. However, we need to see that action ramped up in the coming weeks. I have told the Minister many times in this Chamber that we do not have time on our side when it comes to the post office network. We need to see improvements. If the services are not expanded, the reality is that many smaller post offices will be lost. We need to see action and the services expanded and a clear plan put in place, but I do not see that. What I see is the McKinsey and Kerr reports left hanging in midair. Today the Minister announced a €30 million loan to the company but I would have preferred to see the plan first and then the €30 million going into it. That is what we need to see. I am concerned about the post offices in the midlands and in County Laois which will close if further services are not put into them.

Alan Farrell (Dublin Fingal, Fine Gael)
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Thank you, Deputy. I call Deputy Dooley to make his concluding remarks.

Timmy Dooley (Clare, Fianna Fail)
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Will the Minister be straight with the House? I am not suggesting that the Minister is not normally but I think he could on this occasion. He speaks about the money and what it will do. There is a series of events that will have to take place, and the provision of ten digital gateways on a pilot basis will not use up €30 million. The Minister should come clean and talk about the cost reduction that will assist An Post into the future. He should explain what cost reduction really means, which is redundancies. This is not about improving services or coming up with innovative ways of driving people into post offices. A financial slide rule is being placed across the books of An Post and this is about eliminating people, cutting jobs and reducing access to the services of the post office. It is about making the organisation leaner and fitter to continue doing what it is doing but in fewer areas. We get the continuation of the five day universal obligation on the postal side. That is a given. There is nothing in this for people who depend on post offices in rural areas. It is quite the contrary, notwithstanding the glossy language on the periphery of the kernel of this.

Denis Naughten (Roscommon-Galway, Independent)
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This is about expanding the number of people who will utilise and depend on the post office in rural areas. Since David McRedmond became chief executive, we have already seen the expansion of the parcel service. We now have a service in Ahascragh and Elphin that is equivalent to what is available in Amsterdam or Edinburgh. A van travels six days a week to homes throughout this country delivering parcels and taking back returns. This provides huge opportunity, particularly for local businesses. In the new year, the company will launch a new initiative called eLocal.ie. Initially it will be a pilot in Mullingar, Ennis and Bantry. It will examine how those provincial towns can service the local community with an overnight delivery service using the An Post vans to do it.

On Deputy Stanley's point, it is about putting in more Government services and about putting in new and additional financial and banking services. As I have stated consistently, it is not about holding the tide back but about using technology, including digital technology, to provide new and additional services in An Post. The €15 million is specifically for the development of services within the post office network. There is €15 million to maintain the universal five-day-week postal service. It is specifically ring-fenced for that.

Deputy Dooley referred to the ten pilots for the digital assist mechanism. The funding in this regard is completely separate from the €30 million loan. The money to pilot the mechanism is funding that will be found elsewhere. It will be to enhance and show how Government services can be provided across rural communities and expanded right across the network.

Brian Stanley (Laois, Sinn Fein)
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May I clarify what the €30 million is being spent on? Could he give one or two sentences on the mail centres? What is the future of the centres? There are four of them. There are nearly 1,000 workers in them and they are worried about their future and what will happen.

Alan Farrell (Dublin Fingal, Fine Gael)
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The Deputy will have to submit a parliamentary question on that matter.