Charlie McConalogue (Donegal, Fianna Fail)

-----I often get called McMonagle or McGonagle but it is probably the first time that Dylan has been named McConalogue. I wish him the very best. We are very proud of him in Donegal. It is a wonderful achievement. I congratulate him and look forward to recognising his achievements at an appropriate time. I also wish him well as he heads to Japan.

I know from previous engagements the importance that all Seanadóirí place on the post office network nationally. That is reflected here again today by providing this opportunity for statements. I am sitting beside Senator Comyn and I see on the table in front of her a letter with a stamp on it, which is good to see. That is just happenstance and not deliberate, I believe. I look forward to hearing the comments and contributions from the floor.

As we will all agree, the post office and the postal network combined play a really important role in all of our lives. They play an important social role by providing invaluable support for some of the most vulnerable in society through the provision of social welfare payments, free postage to care homes and many other valuable services as well. They play an integral economic role in facilitating delivery from SMEs and other businesses to consumers, and they are now playing a role in the circular economy, with the growth of consumer-to-consumer services such as Vinted. However, the Government also recognises that there are challenges for both the network and postal services. Uncertainty regarding global trade is one of these challenges. As the network facilitates trade, I am aware that postmasters are likely feeling the effects of this uncertainty. I would like to specifically recognise An Post's work to date in respect of continuing the flow of post to the US despite the recent uncertainty due to the change in its customs rules.

The network, undoubtedly, is 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, issues relating to the cost of living and the effects of inflation and higher energy costs have been felt by many small and medium enterprises, including the postmasters. Global events continue to cause challenges in this regard. The structural changes in the postal sector are being considered at European level. The European Commission is expected to bring forward proposals for a new EU delivery Act next year during our EU Presidency. This initiative is aimed at modernising the EU regulatory framework for postal and parcel delivery services. Currently, a call for evidence in respect of this proposal is open. I encourage all stakeholders to contribute to that.

The Government is currently providing An Post with €10 million funding per annum over a three-year fixed term from 2023 to the end of this year. An Post disburses this funding across the post office network, with all contracted post offices benefiting from the Government funding with the objective of securing the stability of the network. This is seen in the over €28 million claimed by An Post for the period 2023 to date to support our post office network. That funding was put in place under the previous Government. However, as we know, the Government strongly recognises the need to support Ireland's post office network. Under the programme for the Government, it outlined a commitment to provide the nationwide network of post offices with the funding to ensure sustainability and enhance the value post offices bring to local communities. The last time I engaged with Senators, all Members were strong and forthright in advocating for that. I was delighted to be able to secure continued funding in line with that commitment to continue to provide our post office network. In the most recent budget and in the national development plan, I secured €50 million per annum to support our post office network, subject to agreement with An Post and postmasters and further Government approval.

A mandate for this enhanced funding will now be brought to the Government for that approval. My officials are progressing the next steps, as required, such as ensuring proper consideration of state aid provisions and an adequate legal basis for the payment of the funding. However, we should be aware that Government support, despite the significant increase in funding, does not guarantee that all post offices will stay open, but it is our objective to support them in every way possible to ensure as many as possible stay open. Closures can happen at times for a variety of reasons, such as retirement or for personal reasons. The intention is to avoid, where possible, such decisions being necessary or being taken as a result of economic hardship or challenges.

Senators raised the issue that sometimes when a post office closes or relocates, it can leave a heritage building without a use in the heart of a community. The Government has been conscious of this. The programme for Government recognises it as well and commits to the Government partnering with An Post and local communities to identify and preserve heritage post office buildings, of which there are many across the country, which reflects the fact that post offices have always been at the heart of communities. We want that to continue to respect the historical value of any buildings that are no longer being used for post offices by exploring potential new uses. Working with the Department of housing and local government we want to ensure there is strong engagement to make sure they stay within the community.

It is also important to remember that this support to the post office network is to protect and nurture it as a sustainable and commercially viable network. It also aims to ensure access to important services across the country for our citizens. Any supports 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's position. A sustainable, viable, customer-focused post office network is a key strategic priority for the company.

An Post has a statutory responsibility for the post office network. It must actively explore opportunities to develop new and enhanced product lines. We want to have a sustainable post office network that is available to all citizens, both urban and rural, now and in the medium and long term because that network is a core strength of An Post. The continued the development of the network and services is a vital component of its sustainability. Part of the strength of the post office brand, and one of its key selling points, is that it reaches into every community and all parts of the country. Equally, we must recognise that post offices are commercial entities. 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 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 for 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, support their local post office and help ensure its future.

I encourage my Government colleagues to consider the impact of digitalisation and substitution of services on the network because it is important that, as technology develops, we explore new and innovative ways of working. However, it is also important that we ensure that those who, for whatever reason, do not want to access Government services online can still access such services in person. My officials and I are ready and available to work with other Departments in respect of delivery of services through the network.

Postmasters have a crucial role to play in the future of the network. I recognise and thank all 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 or bolster existing business to explore opportunities for development and to see new or enhanced product lines come in place, it is key that it works in collaboration with postmasters to maximise every potential opportunity. I welcome the ongoing discussion between all parties, An Post, postmasters and the Government to ensure the post office maintains a special role in our society. In that vein, I thank the Acting Chairperson and Senators for the opportunity to discuss the network and how we can ensure it stays at the heart of Irish life going forward and that it continues to provide the essential service that it has always done, on a consistent basis and in all communities, over the years ahead.