Michael Kitt (Fianna Fail)

I welcome the Minister of State to the House and thank the Minister of State at the Department of Agriculture and Food, Deputy Browne, for his contribution. Having listened to the debate, I hope the management and unions in An Post will find a resolution to the difficulties in the company. I share the concerns of others that this matter be resolved.

I am concerned by the development of a two-tier postal service, particularly as regards rural areas. During my time in politics the closure of sub-post offices and post offices has been a constant theme. We have been misled by An Post and various Ministers. I was assured by Ministers 25 or 30 years ago when small post offices were being closed that people would be able to get stamps from the local postman. Post boxes were then introduced at the end of roads with the result that the service through which people in rural areas obtained stamps ceased.

More openness and transparency is required with regard to the future direction of the postal service. I am glad the Government is committed to the provision of a service. As a member of the European Union, Ireland is obliged to provide a frequent postal service and An Post meets this obligation by providing a good service. However, rural areas face the threat of more changes which will downgrade services and many postmasters believe changes are taking place too quickly.

The main issue for the trade unions is the €43 million loss suffered by the company in 2003. Only a few years previously the then chief executive stated An Post had made a profit of £1 million. We are entitled to know how a loss of the magnitude of €43 million occurred, who was responsible and who will be held accountable. These are just some of the many questions being asked by trade union members and they deserve an answer.

I am interested in the issues the Irish Postmasters Union wants addressed. Representatives of the union will visit Leinster House next Wednesday to meet public representatives. I hope there will be a large turnout for the meeting. The Irish Postmasters Union has called for funding to provide technology in the 400 post offices which are still paper-based. This is an important issue. The union also raised the gap between postmasters income and the legal minimum wage. I understand governments elsewhere, including in Britain, have addressed this issue.

The post office is a focal point in villages and towns. People want the contract by which social welfare benefits are paid at post offices maintained. They do not want to go to other outlets to receive benefits. It has been suggested that banks could provide this service, which is fine for those who wish to use banks. It is interesting, however, that Allied Irish Bank is the only financial institution which provides a service linked to An Post. Why do other financial institutions not provide this service?

The Irish Postmasters Union also raised the implementation of the Flynn report, which envisages post offices becoming one-stop shops for all Government services. I support the union's position on this issue.

Many contributors have raised the issue of marketing and the need to try to secure new business. I commend postmasters who have ensured the post office network gets involved in new business. Some people have got into processing photographs while others provide a photocopying service. Many have turned their post office into a type of comprehensive shop providing many services.

In that context, I find it hard to understand this constant downgrading of post offices to agencies, an issue to which other speakers referred. As recently as last April, a post office in Kiltormer was downgraded to an agency. It was a post office-cum-shop and was sold. The person who took over, of whom the Minister of State, Deputy Browne, is aware and who is from his area, is dealing with a very different business from the one purchased because of the changes made. Downgrading that post office to an agency was not the way to go, especially when there was a commitment for a post office. It was very unfair on the person who took over the business but who is doing a good job.

The other marketing issues revolve around Christmas and Easter when new opportunities could be availed of. The postal quizzes in which RTE is engaged are welcome. I recommended to the last Minister for Finance, Charlie McCreevy, and will to the current Minister, Deputy Cowen, that every village should have a lotto outlet which, in most cases, would be the post office. There are many outlets in the larger towns but there is none in some of the smaller villages.

When An Post makes decisions about closing post offices, it should not simply put a sign up telling people to go to the nearby village the following week to collect their pensions. That is not how decisions should be made. I am not saying every post office will continue to operate but in a village with a local supermarket or store, people should have the opportunity to take over the running of the post office. There are many questions to which we and the Communications Workers' Union want answers and I hope we get them.

Like other speakers, I believe An Post provides a great service, particularly in rural areas. The people who provide that service are very committed to it but are being undermined. As a Member who represents a rural area, I believe people in rural areas are being undermined when changes are made without any consultation. We find the post office has been downgraded or closed, there is no opportunity to reverse the decision because the die is cast and we are told we must go to the next town or village to do our business. That is not acceptable.