Noel McCarthy (Cork East, Fine Gael)
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133. To ask the Minister for Communications, Climate Action and Environment the measures his Department is taking, or plans to introduce in the future, to support the post office network; and if he will make a statement on the matter. [30269/25]

Charlie McConalogue (Donegal, Fianna Fail)
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I know from having spoken to the Deputy that he is very committed to the post office network and wants to see it developed. I thank him for raising the matter. As he is aware, the Government is committed to a sustainable An Post and post office network which, as we all know, is a key component of the economic and social infrastructure of communities across the country. The programme for Government states that the Government will continue to provide the nationwide network of post offices with funding to ensure their sustainability and enhance the value they bring to local communities. My Department is working to deliver on this and is engaging with relevant stakeholders on funding. In addition, my Department is working with Government colleagues to secure future funding in line with the programme for Government.

As the Deputy knows, €10 million per annum is currently being provided to An Post over a three-year fixed term, which is due to end at the end of this year. An Post then disperses this funding across the post office network, with all contractor post offices benefiting from the funding with the objective of securing their stability and that of the network. The funding is being paid monthly for each 12-month period. There has been over €23 million claimed by An Post for the period 2023 to the end of April 2025 for the network.

As we know, An Post is a commercial State body with the mandate to act commercially and has statutory responsibility for the State's postal service and network. Decisions relating to the network, including decisions relating to specific post offices, are operational matters for the board and management of the company and not an area in which I, as Minister of State, have any function. The postmasters' contract with An Post is a matter for postmasters and An Post and any negotiations are a matter for the parties. The role of Government is very important, which we recognise. We have recognised that with a €10 million investment.

The Minister, Deputy O'Donovan, and I are involved in the budgetary process in order to seek to renew that. We are very committed to making sure the contract is renewed and we do everything possible to make sure post offices stay open and are strongly supported across the country.

Noel McCarthy (Cork East, Fine Gael)
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I thank the Minister of State for his response. Post offices are vital social links in urban and rural communities. They support local economies by providing essential Government services. However, they need further support, as the Minister of State said. Recent increases in inflation and the minimum wage have unfortunately occurred at the same time as a decline in transaction-based income for postmasters. As such, the post office network seeks to stabilise the existing network and prevent post office closures, in particular in rural and disadvantaged areas. Increased investment would ultimately provide long-term certainty for postmasters across the country, while ensuring the availability of essential Government services to citizens in all social settings. What more can be done to support postmasters and the network?

Charlie McConalogue (Donegal, Fianna Fail)
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We will continue to determine how we can ensure we utilise and maximise the post office network in terms of providing face-to-to face services to local communities. As he knows, in many small villages post offices are the last remaining face-to-face service. They provide important services in towns of all sizes, in particular small towns. We want to make sure that we examine how we can utilise the network to the best capacity possible.

We also recognise the importance of making sure that post offices are viable and provide an economically viable income for postmasters. That is why over the past three years we have delivered €10 million per year. We are committed to making sure we renew that funding. We have engaged with the stakeholders and the budgetary process, subject to budgetary considerations, to make sure we continue to support post offices. I was glad to attend the Irish Postmasters Union annual conference recently and engage with it on its ideas. It is something on which Deputy McCarthy has very strong views which he has made very clear. I look forward to continuing to work with him and other Deputies to ensure we support the network.

Noel McCarthy (Cork East, Fine Gael)
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I thank the Minister of State for his positive response. I cannot speak highly enough of our post office network and the service it provides, in particular when compared with its European counterparts. However, I find it concerning that the Irish Postmasters Union warned this week at the Oireachtas communications committee that there could be significant post office closures if funding is not increased.

Taking this into account, and given the importance of the service, is the Minister of State satisfied with the current level of funding of €10 million annually for the national post office network, in particular in comparison with other EU countries? France and Italy have invested €2.6 billion and €1.3 billion, respectively, over the past four years, while Belgium has outlined investment of over €630 million over four years. Such numbers are greatly above the current funding commitment to the postal network in Ireland.

Charlie McConalogue (Donegal, Fianna Fail)
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We are very clear on the importance of Government funding and the three-year contract to make sure post offices are sustained. I have no doubt we would have seen closures over the past three years if it had not been for the Government stepping up to the mark. We are also very clear on the importance of us continuing to step up and support the network.

We have received a submission from the postmasters' union on the renewal of the contract. There are state aid considerations and that technical work is being worked through and fully assessed. It will involve engagement on the part of the Minister, Deputy O'Donovan, and I with the Department of public expenditure. We are very clear on the importance of the network and ensuring that it is supported, along with the importance of Government funding to support the network.

We will continue to liaise with the postmasters' union and An Post on this. The Minister, Deputy O'Donovan, and I will continue to work hard on the budgetary process and with Oireachtas Members, of whom Deputy McCarthy is very much at the forefront in this regard, to ensure the post office network is maintained and kept economically viable and sustainable.