Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

I thank the Senator for giving me the opportunity, on the same evening as the sustainability of the post office network is being debated in the Dáil, to address in this House the concerns raised by the Irish Postmasters Union, IPU, about the viability of the post office network. The post office has a unique standing. Its social role is highly valued, perhaps most highly in rural Ireland, where 64% of the network serves 38% of the population. I was disappointed to read recent headlines asserting that 557 post offices were to close. The impression is given that somewhere, somehow, the Government has announced a plan to shut down post offices. There is no such plan. In fact, as the Senator said, although 197 post offices were closed between 2006 and 2010, only 17 closures have occurred since 2010.

An Post has not escaped the challenging environment brought about by the economic collapse in 2008. More challenging still are the diminishing mail volumes due to technological advances. Of course, as a network of commercial enterprises, the post office network is also subject to EU competition law.

From where did the headlines about post office closures emerge? The origins are a consultancy report that presumes the loss of the social welfare contract, worth €50 million to An Post, and calculates that such a loss would, in the worst case scenario, lead to the closure of 557 post offices. However, the point is that An Post did not lose the social welfare contract. In fact, it won it in a tender process as recently as last year. The Irish Postmasters Union is prudently asking about what the situation might be in 2019.

There is every reason to be optimistic about the new opportunities that lie ahead for the post office network in the digital age. The retail network has actually grown in the past five years, even as the mail business has been contracting sharply. The over-the-counter business today offers very different services from what was offered in the past, including foreign exchange, passport, bank agency and tax payment services. These services are provided in a competitive environment for customers who can choose to do business in other ways. The professionalism of the postmasters, the unions and the board and management of An Post has served the network well through the years. An Post is a trusted brand and has the largest retail presence in the country, with over 1,100 outlets nationwide reaching almost 1.7 million customers.

While operational matters and the development of commercial strategies are for An Post, as a shareholder, I have a strong interest in and concern about the sustainability of the company. This is backed by the commitment in the programme for Government to ensure the sustainability of the post office network. I am, therefore, pleased to announce that the Government has agreed to a whole-of-government consideration, encompassing central and local government and the wider public service, of the nature and extent of services that can be provided for the public using the post office network as a "front office of government". This will afford an opportunity to have an holistic review of the range of services which could be provided by the post office network and could perhaps yield synergies among the various agencies.

There is no doubt that further challenges will present in the years ahead. I am convinced, however, that An Post possesses the capacity and drive to adapt to the changing needs of customers, as well as the necessary commitment and resolution to continue to develop the post office network. In doing so, it will have my active support and that of the Government.