Seanad debates

Wednesday, 4 October 2017

Commencement Matters

Post Office Network

10:30 am

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent) | Oireachtas source

It is Government policy that An Post remains a strong, viable company in a position to provide a high-quality, nationwide postal service and that it maintains a nationwide customer-focused network of post offices in the community. However, the An Post group lost €13.7 million in 2016, with the core mails business losing more than €30 million. The An Post network has just over 1,100 outlets, extends nationwide and reaches almost 1.7 million customers. It is the Government's front-of-office provider of choice for many of citizens and is seen as a trusted, local, reliable and friendly service. The four big strengths of An Post are its strong brand, the fact that the organisation is trusted by the public, particularly older people, its nationwide network and guaranteed delivery and collection five days a week, 52 weeks a year. These strengths have been built upon over the years by the postmasters and postmistresses in conjunction with An Post.

Given its nationwide reach, the company brings vans and postal workers to every single premises in Ireland five days a week, 52 weeks of the year. This is a valuable service, particularly in rural areas and for rural-based businesses. To protect this service, I repealed the cap on the price of a stamp because, despite advice to the contrary, I believe that a five days a week service is an asset to be developed, not undermined. The Government is fully committed to a sustainable post office network and sees it as a key piece of financial and social infrastructure for both urban and rural areas. Part of the strengths of the An Post brand and one of its selling points is that it reaches all parts of the country and can be accessed by anyone. I expect this to be a cornerstone of any future strategy for the company and indeed the post office network.

An Post has entered a period of structural change and decline in activity mainly due to the impact of e-substitution on mail volumes and post office transactions. The environment in which the post office operates is changing and the network needs to change to thrive, particularly with the move to digital transactions. This involves harnessing existing strengths, such as its trusted brand and the relationship of postmasters with individual communities, to build the network of the future. There will be opportunities to develop new or enhanced product lines for the network and I am keen that this would include the concept of "digital assist", whereby the post office would become a default option for the provision of Government services for those who are not comfortable in the digital space.

The post office plays an important role in serving the needs of business and domestic customers alike and this is at the forefront of An Post's mandate. I am acutely conscious of the value placed by communities in both rural and urban areas on services provided by post offices and am concerned to ensure that the needs of those communities continue to be met. The Government remains fully committed to a sustainable post office network, which it sees as a key piece of economic and social infrastructure for both rural and urban areas.

In response to the challenges it is facing, a strategic review of An Post including the post office network, which will identify the changes and restructuring necessary to maintain the company on a sound financial footing, was initiated and is nearing completion. All opportunities are being assessed by An Post in the context of the strategic review. Until such time as the review is finalised and assessed it is not possible to comment further. The Government will be briefed once a definitive strategy has been agreed.

On the issue of the driver licence, there were issues at the time of the tendering process in respect of the criteria that were used and the bid that was made by An Post. It is hugely frustrating, not just in counties like Mayo and Kerry but in my own county of Roscommon, where people have to travel to Roscommon town to avail of this service. It is a service that can and should be provided in the post offices. This contract will be coming up for renewal. There are many more services. The example we have given in the past is motor tax, which is only one of a myriad of services that could be provided. I am one of only five Members of the Oireachtas who made a submission to the Kerr report. Very few Deputies and Senators did so. I specifically focused on that point in my submission. I am determined to see it delivered upon.

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