Charlie McConalogue (Donegal, Fianna Fail)

I thank the Members for the invitation to speak on such an important topic. I welcome the postmasters’ representatives to the Visitors Gallery.

As we know, the post office and postal network play an integral role in the economic life of our country and in facilitating delivery from SMEs and other businesses to consumers. However, I also recognise that post offices have an important social role, providing invaluable support for some of the most vulnerable in our society through the provision of social welfare payments, free postage to care homes and many other valuable services. The Department and the Government also recognise there are challenges regarding the network. Uncertainty regarding global trade is one of the many challenges facing the post office network, given that the network facilitates trade, and I am aware that postmasters are likely to be feeling the effects of this uncertainty. The network is undoubtedly also impacted by the continuing decline in mail volumes and the growth of digitalisation. It is not only nationally, but internationally, that mail and post office businesses are experiencing long-term structural challenges. Additionally, previous issues relating to the cost of living, in particular the effect of inflation and higher energy costs, have been felt by many small and medium enterprises, including the postmasters, and global events continue to cause challenges in this regard.

The Government is committed to supporting Ireland's post office network. As part of this commitment, the Government is currently providing An Post with €10 million in funding per annum over a three-year fixed term from 2023 to 2025. An Post disburses this funding across the post office network, with all contractor post offices benefiting from the Government funding, with the objective of securing the stability of the network. Over €25 million has been claimed for the network by An Post for the period from the start of 2023 until May last.

In addition, the current programme for Government recognises the need to support Ireland's post office network. Under the programme, the Government will continue to provide the nationwide network of post offices with funding to ensure their sustainability and enhance the value they bring to local communities. I am working with Government colleagues to secure future funding in line with this commitment and, in that regard, I await the outcome of the national development plan and budgetary processes. Pending the outcome of those processes, my officials will address the next steps in facilitating funding, namely, ensuring proper consideration of state aid provisions and ensuring an adequate legal basis for the payment of the funding.

We should be aware that the Government support does not mean that all post offices will stay open, but it is our objective to make sure that, from a Government point of view, we do everything possible to maintain the footprint of post offices throughout the country. The programme for Government recognises this and commits to the Government partnering with An Post and local communities to identify and preserve heritage post office buildings that are no longer in operation. We have a protocol in place, working in the first instance with the Department of Housing, Local Government and Heritage, to discuss possible options for buildings to which post offices may have been relocated, which we have seen instances of across the country recently.

Equally, it is important to remember that this support aims to protect and nurture a sustainable and commercially viable post office network. It also aims to ensure access to important services across the post office network for citizens. Any support must, therefore, be utilised to allow time and space to enable new commercial initiatives and services to be developed. An Post fully understands the Government position, and a sustainable, viable and customer-focused post office network is a key strategic priority for the company. An Post has statutory responsibility for the post office network and, accordingly, it must actively explore opportunities to develop new or enhanced product lines for it. We want to have a sustainable post office network that is available to all of our citizens, both urban and rural, in the medium and long terms.

The network is a core strength of An Post and the continued development of the network and its services is a vital component of its sustainability. Part of the strength of the post office brand, and one of its selling points, is that it reaches into all parts of our country. Equally, we must recognise that post offices are commercial entities and, as with any business, they need to continue to develop relevant commercial strategies to attract customers, drive footfall and generate growth. Supported by the Government, An Post must ensure its commercial viability and the continued fulfilment of its mandate to provide a mail delivery service and ensure a viable post office network.

There can sometimes be a focus on the provision of particular services across the network or supports being put in place, but no one measure in isolation is going to provide the long-term sustainability of the network.All stakeholders will need to continue to work together. The public must also be encouraged to use the services available through the post office network to support their local post office and help ensure its future. Postmasters have a crucial role in the future of the network. I recognise and thank all postmasters and postal workers for their hard work, dedication, input and co-operation to date, and for their role in enabling the ongoing transformation of the network. Their support is needed as An Post seeks to win new business or bolster existing business and to explore opportunities to develop new or enhanced product lines.

I welcome again the opportunity to engage with Seanadoirí today and to continue the work I am determined to lead out on, working and facilitating discussions between all parties, including An Post, postmasters and the Government, to ensure the post office network maintains a special role in our society. This is also the case to ensure we bring a conclusion, in as timely as fashion as possible, to the renewal of the three-year commitment, which will run out at the end of this year. We all recognise the importance of maintaining it and I commit to ensuring it is delivered. I look forward to working with all Senators in pushing it through and getting a good outcome in the budgetary process to make sure we continue to see strong post offices in every parish in the country. Go raibh míle maith agaibh. I look forward to the debate.