Seán Kyne (Galway West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank Senator Devine for raising this important issue which I, as Minister of State in the Department, am taking on behalf of the Minister, Deputy Naughten.

As Minister for Communications, Climate Action and Environment, Deputy Naughten, has responsibility for the postal sector, including the governance of An Post. The Minister is acutely conscious of the value placed by communities in both rural and urban areas on services provided by post offices and is concerned to ensure the needs of those communities continue to be met.

Reflecting its commitment to sustaining a nationwide post office network and daily mails service, the Government has made €30 million available in State funding to An Post, €15 million of which will be used to support the renewal of the post office network and €15 million of which will be used for the continued fulfilment of a five day per week mails delivery service. This, in turn, will secure the future of mail and post office services for local communities throughout the country in both urban and rural areas. In addition, the company proposes to invest €50 million in growing and modernising the network over the next few years.

As part of its strategy for modernising the post office network, An Post has established a dedicated business unit within An Post called An Post Retail. An Post recently announced its plans for a modernised post office network. The vision centres around the availability of new services in a modernised, revitalised network. Such services will include a better range of Government services, financial services and e-commerce services for shoppers and small businesses. The announcement by An Post is supported by an agreement reached with the Irish Postmasters' Union, IPU, executive following three months of intensive negotiations, which has subsequently been endorsed by 80% of IPU members.

The announcement represents a positive first step in reinvigorating our national post office network and making it a viable service that meets the needs of communities across the country, particularly in rural areas.

Given the challenges it is facing, the company will have to pursue an ambitious agenda across its various business areas and there is likely to be significant change and new business models implemented in the coming years. This should be viewed positively as it will result in a solid, sustainable business future. Enhanced banking services are becoming available through the post office network with the smart bank account. It is expected that further such opportunities will be available across the network, especially as high-speed broadband becomes widely available through the roll-out of the national broadband plan.

As part of its consideration of the financial position of An Post, Government agreed that further opportunities for Government business through the post office network, particularly the payment of motor tax, should be explored. While Government policy is to offer Government services online, there is always likely to be a segment of the population that is not comfortable or proficient accessing online tools or services. The post office network is the obvious choice as the "offline gateway" for citizens with its nationwide network and existing strong relationship with offline citizens.

Department officials have engaged with An Post and other relevant stakeholders, such as the Office of Government Procurement, the Office of the Government Chief Information Officer and other Departments to assess how additional Government business might be channelled through the post office network. Discussions have been positive in this regard. The Minister, Deputy Naughten, along with the Minister for Rural and Community Development, Deputy Ring, the Minister for Employment Affairs and Social Protection, Deputy Regina Doherty, and myself, are actively engaged in this to ascertain how we can bring more Government services into the local post office network. We are determined to ensure that is happening while also remaining cognisant of the need to adhere to public procurement procedures.

The first practical step that the Government is taking is the digital assist pilot programme. Under that programme, post offices will provide access to a wide range of Government services. Government funding of €80,000 has been secured, through the Minister for Rural and Community Development, Deputy Ring, for the roll-out of a pilot digital assist scheme. Ten post offices will be equipped to help citizens with online Government interactions. The ten pilot schemes will be located in rural post offices and will be in place later this year.

The affiliation with the Department of Employment Affairs and Social Protection remains a significant feature for the future of the post office network. In April 2018, the Minister for Employment Affairs and Social Protection renewed her Department's contract with An Post to provide pensions, child benefit and other social welfare payments in cash at post offices. Last year's contract amounted to €51 million for 33.6 million payments, and the value of the 2018 contract is expected to match that. This reaffirms Government policy which sees the post office network as a key piece of the country's financial and social infrastructure, particularly in rural areas.Accordingly, A Programme for a Partnership Government commits to actively encouraging payment at post offices. All avenues are being explored to ensure that services available to the post office network are enhanced so that we have a strong, customer-focused network. The contract has been renewed. It was agreed, along with the Department of Employment Affairs and Social Protection, in 2013 for an initial two-year period with an option to extend annually up to 2019. That is welcome news.

Maire Devine (Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State. There is some €15 million for growing and modernising the network. Who makes the decisions on the priorities and where this €15 million will be invested? Does the Minister have any influence over that? The Minister of State says people are not proficient or comfortable in accessing digital services online at home and he is providing some training within ten pilot post offices in rural areas. The point also needs to be made that a significant amount of those people who are not comfortable with online tools actually prefer human interaction. It is an important part of the fabric of communities, building resilient and stronger communities, and battling isolation. Perhaps the Minister of State cannot give me an answer on my local post office in St. James's Street, Dublin 8. Will he ask the Minister if he could make inquiries into this? It is historic. For that to go would spell the death knell of many more post offices.

Seán Kyne (Galway West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank Senator Devine. I will certainly ask the Minister. I know the commitment reached by the Irish Postmasters' Union, IPU, and approved by 80% of its members, included that An Post will open up to 20 new offices in communities of 500 or more currently without a post office, with a post office for every community of over 500 people within 15 km of 95% of the population, and 3 km in urban areas. St. James's Street post office may fit into that. I am not sure.

Maire Devine (Sinn Fein)
Link to this: Individually | In context | Oireachtas source

No.

Seán Kyne (Galway West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Senator is shaking her head. I will ask the Minister to revert about that post office. I would not have the facts. It was not brought to my attention. The digital assist is a positive. It is a pilot but, subject to it working, I see no reason that would not be extended to many other different areas. As I said, funding of €80,000 has been provided. The proposed pilot locations are to be agreed between An Post and the IPU, which is positive. I will revert on the issue I have raised.

I accept the importance of the post office network and that there are people who prefer the social interaction that the post office provides. I have listened carefully to the Senator's views. It is Government policy that An Post remains strong and that the network remains strong. The agreement reached between the IPU and its members would be that there would be no compulsory closures of post offices. We are committed to a high-quality, nationwide service in both rural and urban areas. I think all Members would aspire to having maximum coverage of the country, providing an important service for communities across the country.