Seanad debates

Thursday, 4 July 2013

Promoting a Sustainable Future for the Post Office Network: Statements

 

12:25 pm

Photo of Trevor Ó ClochartaighTrevor Ó Clochartaigh (Sinn Fein) | Oireachtas source

Tá céad fáilte roimh an Aire. Seanfhocal eile sa Gaeilge ná, "Mair a chapall, agus gheobhair féar" - live horse and eat grass. That is also important in the post office scenario and it is important that we sustain them. Mar fhear ó Chontae Mhuigh Eo, agus as iarthar na hÉireann, tuigeann an tAire an tábhacht atá ag baint leis na pobail tuaithe agus cé chomh riachtanach agus atá oifig an phoist i lár na bpobal sin. The post office network is a key natural and rural resource so we should not measure its success primarily on financial measurability. The socio-economic impact of a post office must also be taken into account. I take a certain amount of umbrage with one of the suggestions made by Senator Quinn, namely, that we look at privatisation of the post office service. I hope we do not. If we go down that route it will sound a death knell, particularly to rural postal services.

It is important that the post office network is seen as more than a commercial entity. It serves an important social role in communities throughout the country. Obviously there are problems in the network, with falling revenues, branch closures and a high dependence on the single contract with the Department of Social Protection. Based on an analysis of the staffing systems, the network has the capability of easily facilitating additional services, something we would all like to see. Currently, turnover is derived from the three main sources outlined, traditional mail service, Government contracts and financial services. Banking accounts for 3% of revenue, social welfare 29%, NTMA saving contracts 27% and traditional post 16%. Taken together, this means social welfare and NTMA contracts account for 56% of total revenue so it is obvious we need to diversify, if possible. There is a high dependence on State-related contracts for survival and therefore the State's role in maintaining postal services and the network is very important.

In terms of strength, the network is Ireland's largest retail network, with more than 1,100 post offices in the country. It has a very strong brand and is a household name, with positive customer perception.

It is a household name with positive customer perception and a large customer base. It enjoys a considerable goodwill and trust and also provides community and social centres. Those who work in the system possess impressive local knowledge. It has the capacity to handle additional businesses. However, it also has certain weaknesses. It is heavily dependent on State contracts and its offerings are inconsistent. Its financial performance has been varied and it has faced restrictions on marketing. The remuneration system is possibly outdated and inconsistent.

Other Senators have suggest potential sources of income, such as motor tax, court services and fines, local authority charges and ticket sales. In my area of Connemara, the Courts Service's decision to close the administrative office of the local court left people asking how they might pay fines locally. This could be an opportunity for An Post. Reference was made to EU legislation and the fact that competition rules may make it more difficult for An Post to tender for certain contracts. Can the EU also offer benefits, such as some kind of communications or information disseminating element that could be done through the post office network? For example, the EU has established information points in libraries so that people can find out about the service it makes available. Could we tap into the EU for potential contracts for the dissemination of information or services?

I am concerned that An Post is urbanising services. Our current debate is about its office but postal staff provide an extremely important resource. In the hinterland of Galway city, An Post is pushing to urbanise services by not replacing retiring staff in rural areas within a radius of ten to 15 miles of Galway. It is important that post masters and delivery staff are based in communities.

Complaints have been made about the lack of communication with communities in regard to changes. The Government should be rural proofing any policies that are introduced. We have tabled a Private Members' motion on this subject. If, for example, the Minister for Social Protection was required to rural proof all of the policies she introduced, the closure of rural post offices might be prevented because they would be in a better position to retain the social welfare contracts. I urge the Minister, Deputy Rabbitte, to publish the criteria for analysing the viability of post offices. What makes a post office viable from the Government's perspective? If the Department of Social Protection proceeds further with electronic payments, 400 post offices could be in jeopardy.

Will the most recent proposal on post codes be sent to open tender and will they be GPS based? Most of the private delivery companies use GPS systems. It was indicated in previous discussions on the matter that the Minister did not intend to go down that route.

Tá na hoifigigh poist, na máistrí poist agus na daoine atá ag obair sna seirbhísí poist iontach tábhachtach. Tá sé tábhachtach iad a choinneáil faoi scáth an Stáit, go dtabharfaidh an Stát gach tacaíocht dóibh agus go mairfidh agus go méadóidh siad.

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