Micheál Carrigy (Fine Gael) | Oireachtas source

I concur with Senator Dooley's comments on the staff throughout the network being classified as front-line workers during the pandemic. Sometimes that can be forgotten.

I welcome the Minister of State here to discuss the sustainability of the post office network, which is very important. Why should we support the network? Because the network is at the heart of communities in rural and urban areas. It has a proven track record in the delivery of services and as a brand, it has one of the highest recognition levels in the country. In a 2020 Red C poll, 91% said it provided a valuable service, 86% supported the Government providing it with financial supports to maintain the network and 86% said that they wanted more State services available in their local post office.

I should have said at the beginning that I am a postmaster myself and a member of the Irish Postmasters Union, IPU. My family took over the office in my local village in 1972, when my late mother took it on. I succeeded her in 2012. I will give a brief history of the cuts that I have taken myself after taking over in 2012. We lost the four postpersons attached to our office despite having been given assurances from An Post that that would not happen. With that came a 12.5% reduction in wages and no compensation for that. Last January there was a further 10% reduction in wages and I expect another 10% cut in July and a downward spiral in the coming years. We are contractors who bear all the expenses - rent, light and heat, rates etc. and we do not even get a pen - we provide everything for the business. The July reduction is due to expire because the 2018 agreement between An Post and IPU, which was supported by the Government, is coming to the end. I also have a small shop with my business which I purchased in 2007 to co-locate in an effort to maintain the business into the future.I anticipated there would be difficulties ahead. I employ seven part-time staff, and if my office goes, will my business survive? It would be difficult to do so. It is not only the seven staff who would be affected because other businesses in my community would be affected by the lack of footfall. People would not be coming into the village. They would be more likely to head to Longford town, seven miles away.

The post office is not just a business. It is a vital cog in our community. We have been open throughout the pandemic and, along with the postal network, have played a major role in our community. Our value has been immense and recognised. Based on a model that was used in the UK to calculate the social value of the network, post offices in Ireland are estimated to be of a value of €550 million. The UK Government between 2010 and 2018 invested £2 billion in a network transformation programme and a network subsidiary payment, which was designed to cover the operating costs of rural offices that may not be profitable but are required for the system and to protect the local economy.

A Grant Thornton report of last year stated:

The Irish Post Office Network is at a critical juncture. The financial viability and sustainability of the Network is challenged like never before in its history.

The president of the Irish Postmasters' Union stated around the same time that:

A Post Office PSO needs to be sanctioned this year and implemented by mid-2021. We do not have time to delay and do not need any further evidence. The level of closures next year is potentially so significant as to mean a collapse of the Irish post office network as we know it.

That is where we are at. There has been talk in recent months of the closure of Bank of Ireland, Ulster Bank and AIB. I remind people that in 2009, when the financial crisis hit the country, we bailed out these financial institutions that are now closing down. The only bank that was not supported was Postbank, which was owned by An Post. It had no debt and 200,000 customers but was not supported and had to be closed down. We did not receive any help then but we need it now. As postmasters, we are not looking for money for nothing. We want to maintain levels for the next three to five years, allow those who wish to retire to do so, reduce the size of the network and try to bring it back to profitability.

I welcome the recent Grant Thornton report being sent to NewERA. I also welcome the offline services report which recommended a coherent approach to the delivery of offline services which has led to the establishment of the interdepartmental group co-chaired by the Department of the Environment, Climate and Communications and the Department of Public Expenditure and Reform. I am confident the Minister of State will present a strong case for a funding model to be put in place.

I welcome that the Government remains committed to a sustainable network as a key component of the economic and social infrastructure in both rural and urban areas. Our programme for Government is committed to it. Our recently launched rural future initiative states the post office plays a central role in the delivery of public services. We have identified our town centre first approach as a key pillar to reinvigorate our urban centres throughout the country. I believe there is an opportunity here, and if we want to revitalise our towns and villages, we need to maintain the network. We need other services to survive, and if footfall is reduced, it will make it more difficult for ancillary services to survive. If we do not have those services available, will we get people to move back into town centres? I believe not. If the services are not there, people will not move back. I believe the post office network is key to the success of the urban and rural regeneration fund. It should be about not only upgrading derelict buildings but also building communities.

We need immediate action to address the current and impending financial crisis. We need to follow through on the programme for Government which states the network has untapped potential to do more and to make a further, significant contribution across many areas of public, business and community life in Ireland. An Post can emerge as a central hub for a wide variety of valuable community services, but to fulfil that vision, we must not only put the services in place, we must financially support the network. I have spoken to the Minister of State and her officials on a number of occasions and I am confident she understands the issue and will work towards a viable solution.