Rose Conway Walsh (Sinn Fein) | Oireachtas source

I acknowledge the role the post office has played thus far in the life of rural Ireland. It is not acknowledged enough how absolutely vital it is in certain areas. Sinn Féin recognises this but also sees an enhanced role for the post office network far into the future. In our document, A New Deal for the West, we put the local post office at the heart of our plans for communities. We want to see a range of services provided at post offices. They should be given the ability to sell insurance, process motor tax, offer single payment accounts, provide banking services and process the payment of bills to local authorities. They are positive moves that Sinn Féin supports. Years ago, when I lived in London, they were things that were automatically done through the post offices. When I hear that emergency legislation is needed, I think successive Governments have been asleep at the wheel. We should never need emergency legislation on this. It is a crazy idea. We know people's tastes and we know the trends and what people need. As someone who lives in rural Ireland, emergency legislation to ensure the survival of post offices is crazy. We support most of the recommendations of the Kerr report and want them to be implemented speedily.

The main thrust of the Bill involves removing the cap on a price increase to postal services currently set out by the communications regulator. We accept the need for an increase but believe the removal of the cap will lead to uncertainty and remove a vital check on any potential increases. In its submission to the Joint Committee on Communications, Climate Action and Environment, ComReg stated it was very worried about the liquidity position of An Post.It has gone from having a cash balance of €350 million in 2008 to having just under €40 million at present. While ComReg was at pains to stress its independence regarding whether to support the legislation, the figure mentioned points to serious financial problems at An Post. It seems the Government is intent on allowing prices for postal services to greatly increase rather than investing in the network.

I am concerned that removing the price cap and significantly increasing the price of postage before the development of an enhanced An Post service will jeopardise the viability of the company further. By lifting the cap on postal pricing, we are told it is expected that the increase in the cost will be in the range of 12% to 38%. It is certain that an increase at the higher end of the scale will dissuade people from using the postal service.

Putting our post offices in danger means that older people, especially in rural areas, will be forced to rely on the kindness of family and friends or on the public transport system to access services in other areas once their local post offices have closed. Given the many difficulties affecting the public transport system, this creates even more concern for people who rely on their local post offices to access services. Put simply, Sinn Féin would prevent any further closures or downgrading of the network by negotiating a comprehensive review of derogations from the postal services directive to increase minimum standards of universal provision and also to increase obligations to communities regarding, for example, accessibility and protection of branches from closure.

There is a problem with just repealing section 30 of the 2011 Act and removing the cap ComReg can currently impose. ComReg can set a range, currently from 60 cent to 75 cent. Removing this power is a negative move. We believe there should be freedom to increase charges but ComReg needs to play a role. The Bill removes ComReg's role, which is counterproductive and will push more customers away. This is particularly the case given the price increase that has been mentioned. The Bill does not simply raise the price cap but gets rid of it completely.

The general secretary of the Irish Postmasters Union has expressed concern that the price increase will reduce the volume of business and threaten postal services. Justin Moran of Age Action addressed a meeting of the Joint Committee on Communications, Climate Action and Environment in January and stressed that the big increases will affect older people most. They could be doubly hit, not only by the increase in the cost of the postal services but also by the removal and closure of local post offices. Mr. Moran argued that the increase will have a disproportionate affect on older people because they are more likely to use postal services. It noted that only 3% of those aged over 75 years used electronic mail. The repeal of the pricing cap also represents a weakening of the power of the regulator. ComReg's role will become one of a spectator or commentator at best. Uncontrolled price increases may bring a temporary solution to the financial problems of An Post, but these will only get worse if customers are lost and the company finds it hard to maintain its existing post office network. If ComReg is removed from the process, I fear that any increases will become uncontrolled and unsustainable.

The postal service industry in Ireland had a turnover in 2015 of approximately €540 million. An Post's losses in the same year amounted to €25 million, the bulk of which, as we learned yesterday, can be attributed to international mail delivery and the registered mail service. An Post receives only 44 cent per standard letter item for international mail. Domestically, however, postal services are almost breaking even.

The consulting group, McKinsey, has been hired to conduct a strategic review and advise An Post on the future of the business. It is surely premature, therefore, to implement price hikes. While Sinn Féin accepts it is necessary to take action, it is wrong to remove the role of the regulator and its ability to impose a cap on prices before the McKinsey report has been published. I understand the report is due in April or early May.

Although An Post and the broader postal service network in Ireland are separate entities, they cannot be viewed in isolation from one another. The post office network must be considered in any examination of postal services. The financial health of the postal network and the well-being of the corporate structure of An Post are related. On many occasions we have asked the Department of Social Protection to stop sending letters to people encouraging them to manage their social protection payments through banks rather than post offices. It is vital that this function remains.

The recent pilot scheme between post offices and credit unions was deemed a success in terms of joint loans and payments made to either institution at branches of both. There is no reason this trial run could not have been extended to 1,130 branches across the State. The local post office is an essential component of the cluster of businesses needed in any small town or village.

The purpose of the Bill is not to permit price increases but to sideline the Commission for Communications Regulation. We complain a great deal about the inactivity of regulators. This legislation sidelines and removes a regulator from the pitch, which will result in ComReg becoming a spectator or, at best, a commentator. We believe this is the wrong approach.