Robert O'Donoghue (Dublin Fingal West, Labour)
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2. To ask the Minister for Communications, Climate Action and Environment if he will consider transferring certain State services, such as voter registration, motor tax payments, or cash collection, to An Post with a view to supporting its long-term viability, preventing further post office closures, reducing pressure on other public services and allowing people with lower levels of digital literacy skills to still have a place they can do their business. [52487/25]

Patrick O'Donovan (Limerick County, Fine Gael)
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The Government is committed to a sustainable An Post and post office network as a key component of the economic and social infrastructure throughout Ireland. The programme for Government commits to providing the nationwide network of post offices with funding to ensure their sustainability and enhance the value they bring to local communities. The Department is working to deliver on this commitment, engaging with relevant stakeholders in relation to the securing of a new mandate from the Government to continue funding at an enhanced level, while ensuring an adequate legal basis and compliance with state aid rules.

An amount of €10 million per annum is currently being provided over a three-year fixed term from 2023 to 2025 to An Post. An Post then disperses this funding across the post office network, with all contractor post offices benefiting from Government funding with the objective of securing the stability of the network.

It should be noted that An Post provides important services to its customers and key government services to citizens, including through commercial contracts with the Department of Social Protection and the National Treasury Management Agency, NTMA.

The report of the interdepartmental group, which was established to, among other things, examine the feasibility of additional Government services being contracted through An Post and the post office network, was published in 2022. None of the Departments or agencies involved were in a position to offer additional services for delivery by An Post. It is a matter for each Department or agency with responsibility for a service to consider how best to deliver their services. However, while I have no role in services outside of my remit, and cannot transfer such services to An Post, my officials and I will be happy to engage with Departments should they wish to transfer services under their remit.

The Government launched Harnessing Digital: The Digital Ireland Framework in 2022 and publishes annual progress reports. One of the aims of the framework is to ensure widespread access and inclusive digital public services, with a target of 90% of services to be consumed online by 2030. As we progress towards the target of 90% of applicable services consumed online, the framework commits to ensuring that those cohorts who are not in a position to engage online will be better served through a clear plan involving focused supports including skills, infrastructure and assisted digital supports, with consideration of the most appropriate service delivery channels and the development of appropriate and clear consents and protocols. There is potential for the post office network to be a key enabler, therefore, in the implementation of the digital Ireland framework.

Robert O'Donoghue (Dublin Fingal West, Labour)
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Post offices are far more than service providers; they are the beating heart of the community. They bring people together. Therefore, it is not just about posting a letter or paying a bill; it is about human interaction. In rural towns and villages, post offices often serve as the only local retail outlet, frequently integrating with shops and newsagents. This makes them indispensable in providing everyday goods and services that might otherwise be out of reach. Their presence fosters both economic activity and social cohesion, while also creating a mutually beneficial relationship with surrounding businesses. Post offices are more than just part of our infrastructure. They are anchors of community life; keeping people connected, businesses supported and towns alive. They need continued support from the Government. I am happy that the Minister is happy to engage with the postmasters.

Patrick O'Donovan (Limerick County, Fine Gael)
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We have engaged with the postmasters. I represent a rural community. I know probably as well as the Deputy the value of post offices. The earlier reply alluded to the fact that there is a digital risk with the growth in the number of services that are moving online. The reality is that mail delivery services have gone down dramatically. That poses a risk to the company and we have to be acutely aware of it. While everybody wants to move their services online, that comes then with a challenge to the organisation. The challenge to the organisation is to make sure it can compete, which it does, in other markets, including in parcel delivery in which it is doing a really great job. I understand, however, the context of what the Deputy is saying around it being a social asset as much as anything else. That is why the Government has over the past three years given €10 million in support, and that is why we have been engaged with the Irish Postmasters' Union, IPU. This is something we are considering in the context of the budget.

Robert O'Donoghue (Dublin Fingal West, Labour)
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It is good to hear that the Department is seeing this as a challenge to the organisation because that is key in all of this. I urge the Minister to support the IPU in its calls for €15 million in additional funding for budget 2026. This is just to keep them viable. It is to stop them closing their doors. However, what they really need is a long-term plan. As the Minister outlined with physical mail deliveries, that is a challenge. I refer to the 2018 contract. The are paid by their transactions, but their demographic is getting older. That means that even with inflation, what the postmasters are taking in is going down year on year and, therefore, what they ultimately need is a long-term plan to secure the sector. If the Department is willing to engage with them, that would certainly be a good start.

Patrick O'Donovan (Limerick County, Fine Gael)
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Any decision on offices and outlets is a matter for the company and has been since the foundation of the company, and they are commercial decisions. That being said, when I meet with An Post, and any time I have met An Post, its representatives are very keen to point out that what it has been doing in the recent past, by virtue of the fact that it has gotten significant financial support, is looking to see if there a viable alternative in the immediate area it is prepared to take on. Unfortunately, we have had situations where there have been closures and there have been alternatives, but those alternatives are not willing to take it on, which is their choice.

9 o’clock

They do not have to take it on but that means if a postmaster is retiring, and an office is closing and nobody else wants to take it on, inevitably, we are looking at closure. The reality is, however, that in the past number of years the number of closures has gone down. This is not just something that is unique to rural areas. We have seen a substantial number of urban offices close as well.

The Deputy is right that post offices do not stay open on the basis of sentiment; they stay open on the basis of transactions. There is no point coming to a public meeting to keep a post office open if you have not been in a post office for the past 12 months. That is the reality. Postmasters cannot operate on the basis of sentiment. They have to operate on the basis of transaction and loyalty from the local community.