Seanad debates

Wednesday, 30 May 2018

Community Banking System: Statements

 

10:30 am

Photo of Terry LeydenTerry Leyden (Fianna Fail) | Oireachtas source

I thank the Minister for being present for this debate on postal services and particularly local post offices, which are very close to all our hearts. As a former Minister of State at the Department of Posts and Telegraphs in 1982, I had a very close relationship with the postmasters' union and the post office system. Since that time, unfortunately, too many post offices have closed. In County Roscommon alone, post offices have closed in Kilteevan, Dunamon and Ballymurray. I could go through a list, which is unfortunate.

The agreement reached between the postmasters' union and the Department is welcome. If there is a very attractive deal, I want to ensure postmasters do not take it on themselves to close a possibly viable office in a rural area on the basis of the agreement. An Post should ensure the office structure would be retained. It is a danger with agreements like this, although I welcome that the agreement has been made. I know the Minister is making great efforts to enhance the role of viable local post offices and the location of offices. Nevertheless there are circumstances where a postmaster might decide for his or her own reasons to avail of this attractive package, although it might not be in the best interests of the area the branch serves.It must be possible for An Post to refuse to agree to a request from a postmaster or postmistress to close a viable office. Technology has allowed Seamus Boland and Sinead Dooley from Irish Rural Link to tune into this debate. I commend the Houses of the Oireachtas on having a facility to broadcast debates live on the Oireachtas network. Irish Rural Link has made a good submission. I understand the Minister is responding well to its proposal to offer a banking structure in local post offices.

There is great trust in the post office. It is a guaranteed system. It has reached a stage where many people with small savings will literally have to pay for the banks to retain and secure their money. The current interest rate on savings is about 0.25%, although I understand An Post offers a better deal. In the past, the post office service encouraged young people to save. It may not go through the same process used in the past when, under a stamp system, a stamp was issued and a person built up savings. I encourage young people to save. The school system should encourage them to get into the saving habit. The best way to save is through their local post office because people will get a welcome from the postmistress or postmaster, whereas banks are nearly all automated and customers have little contact with staff at the front desk. Sometimes I wonder if I am being charged for discussing my accounts at the front desk.

I also welcome the decision of the Minister for Employment Affairs and Social Protection to renew the contract with An Post. The previous Government had a tendency to encourage people to have direct transfer of their pensions to commercial banks. I could never understand this and I am delighted the Minister for Communications, Climate Action and Environment and his colleagues have grasped this issue. As the Minister stated, the contract has been renewed.

In respect of the pilot scheme that is being launched, the Minister made the point that one in seven people does not have access to the Internet. He knows from being a Deputy for Roscommon-Galway-----

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