Mary Ann O'Brien (Independent) | Oireachtas source

I welcome the Minister to the House. I am delighted we are having this discussion on the sustainability of the Irish post office network.

Our post office network is undervalued and few people fully appreciate and consider the vital and important role it plays in Ireland's social fabric. Undoubtedly, with the rapid developments in new forms of instant communication, its importance has been diluted somewhat. Nevertheless, it remains a significant player in the functioning of Ireland's communications infrastructure. I would like to draw attention to the following facts. An Post is a major commercial organisation, providing a wide range of services, encompassing postal, communication, retail and financial services. It is one of Ireland's largest companies, directly employing over 10,000 people through its national network of retail, processing and delivery points. Each week, 1.7 million Irish citizens visit the network of over 1,050 post offices nationwide. Each day, some 2.5 million mail items are delivered to 2.1 million businesses and residential addresses.

These details illustrate the fact that our postal network is extremely vibrant, whether concerned with the servicing of Irish business needs or assisting people in their daily tasks, particularly people in remote, isolated areas of the country. However, the current Government's attitude to our postal network needs close scrutiny. The Minister will tell me that the Government's position on the network is clear, as it has vowed to protect it in its programme for Government. This is of little comfort to me. Perhaps I am becoming increasingly cynical about the promises and commitments offered in politics by governments and parties. I judge people and governments by their actions rather than their words. For this reason, I am deeply concerned for the future of our postal network.

In the past, I have spoken in this Chamber about the lifeblood of local communities right across the country, focusing my comments on small businesses in the main. However, I feel that 400 post offices right across the State symbolise and are at the heart or our communities. We must strive to protect them. As we are aware, post office income is based on each transaction processed on behalf of clients and customers. This brings me to my main concern if the Government presses ahead with its drive for all social welfare payments to be delivered electronically by the end of 2014. This will decimate the income of post offices as the social welfare contracts account for 35% of post office business. Such a move will result in post offices being forced to close as they will no longer be viable. This will be a catastrophe for the network and communities, both urban and rural. This move would see the lifeblood ripped out of communities who depend on their post offices for saving money, paying bills, buying postal orders or stamps, obtaining dollars or sterling commission free, using passport express and paying Garda fines and many other expenses. I am not being dramatic here, just pointing out that this is what will happen in a few years if we do not think clearly now and make the right move.

Leaving business aside, post offices are also an important point of social contact for many vulnerable and elderly citizens. The closure of some post offices would lead to people having to travel long distances to obtain services such as those I have outlined. Some will travel, others will not and some will simply not be able to travel to another post office. At a time when our not so kind-hearted banks are closing branches right across the country, in a drive to encourage people to bank electronically so as to enable banks cut costs and boost profits, the Government must proceed with extreme caution when it comes to any decision which may lead to post office closures, which ultimately results in less consumer choice and increased social isolation.

I am all for creating sustainable businesses and the environment to allow this happen. My passion to see the post office network protected is not based on a false, nostalgic postcard picture of a lovely post office. My vision is based on a sound and tested business model for the network. It is an added plus that this will have a positive social impact. The Minister might well ask what this vision is. Senators will be glad to know that the Government could not make this all happen with the stroke of a pen, but it could be done with not much more than that. Simply, the Government needs to direct more government business through the network. I welcome the analogy Senator O'Brien made with Citroen in France - EU procurement rules how are you. The French approach with Citroen works well.

The recent report by Grant Thornton found that if motor tax renewals alone were diverted through the post offices, this would save taxpayers some €60.6 million. Other services which could be directed to the post office network include: over the counter payments for water charges, local authority rents, driving licence renewals, electronic signing-on, the updating of the register of electors and credit union transactions. The options and choices for protecting the post office network are vast. There is no excuse for us arriving at a situation where there is widespread closure of post offices or any further dilution of the network. It is time for the Government to act and to live up to its promise in the programme for Government to protect the postal network.