Seanad debates
Wednesday, 22 May 2024
Nithe i dtosach suíonna - Commencement Matters
Postal Services
10:30 am
Victor Boyhan (Independent)
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Our next and final Commencement matter is in the name of Senator McDowell and it relates to Rathmines post office.
Michael McDowell (Independent)
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I am grateful to the Minister of State for taking this operation today. The background to this matter is a letter that I received on behalf of the Belgrave Residents’ Association regarding the proposed closure of Rathmines post office and its transfer of services to another location in the area which is, as yet, unknown. The matter is the subject of much disquiet in the locality. At a Green Party meeting on May 2, the Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, said that no decisions had been made on Rathmines post office. Later, at the same meeting, he said that the service would remain in the same building. However, letters sent to the Minister by the residents’ association have been replied to by the Minister of State at the Department of Transport, Deputy Jack Chambers, who is responsible for postal policy. On 10 May, the Minister of State replied:
In accordance with section 8.22 of the Code of Practice for the Governance of State Bodies, all State bodies are required to seek the approval of the relevant Minister and the Minister for Public Expenditure, National Development Plan Delivery and Reform in advance of any material acquisition or disposal of lands, buildings or other material assets.
The public affairs manager of An Post had replied to residents’ queries on April 18 stating, “as soon as the new Postmaster is in situ, we intend to place the building on the market.” An Post further stated: “All services currently provided in Rathmines post office would be provided in [what it described as] “a bright, modern, purpose fitted post office nearby.” Residents wish to know exactly where this new location is. What I am asking is whether Minister for the Environment, Climate and Communications has indicated his approval to the sale or disposal of the art deco building in Rathmines. As the Minister of State will appreciate, this is a purpose-built art deco building. It was built to be a post office and the suggestion that services are going to be located to somewhere else or that they are going to be located in the same building is not satisfactory.The Minister, Deputy Eamon Ryan, has asked a number of Ministers to deal with this on his behalf. He asked the Minister of State, Deputy Rabbitte, to deal with the matter in the Dáil. On that occasion, the Dáil was informed that:
In accordance with section 8.22 of the code of practice, all State bodies are required to seek the approval of the relevant Minister and the Minister for Public Expenditure, National Development Plan Delivery and Reform in advance of any material acquisition or disposal of land, buildings or other material assets proposed by a State body. An Post is aware of the requirement for compliance with the code of practice. An Post has indicated that the change in business model of the six offices will not in any way alter the range or extent of the services offered by An Post in those locations.
Is Rathmines the location or is it the existing post office that is the location? Nothing is clear about that. The one thing that has been absent in all of this is the very simple question of whether the Minister has given approval for the disposal of the Rathmines post office by An Post. A simple yes-no answer should be forthcoming to that.
Ossian Smyth (Dún Laoghaire, Green Party)
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Before I start my reply, the answer is "No".
I welcome the opportunity to outline the position on the matter on behalf of the Minister, Deputy Eamon Ryan and the Minister of State, Deputy Chambers. Both the Minister and Minister of State are very aware of the impact of decisions relating to changes in An Post operations have on communities and individuals in both rural and urban areas.
An Post is a commercial State company. It has a mandate to act commercially and, as such, day-to-day operational matters, including decisions in relation to the size, distribution and future of the network are matters for the board and the management of the company and not ones in which either the Minister or Minister of State has a statutory function. The Minister has responsibility for the postal sector, including the governance oversight of An Post to ensure that the company is compliant with the code of practice for the governance of State bodies, and the governance functions included in the statutory framework underpinning An Post.
In line with its ongoing transformation, An Post has announced that it is converting six post offices from An Post-operated to contractor-operated and one of these is the Rathmines office. That post office will join the mainstream of national post offices in that more than 90% of the country's 900 post offices are operated by contractors. It should be noted that fewer than 40 post offices throughout the State are run directly by An Post.
In accordance with section 8.22 of the code of practice, all State bodies are required to seek the approval of the relevant Minister and the Minister of Public Expenditure, National Development Plan Delivery and Reform in advance of any material acquisition or disposal of land, buildings or other material assets proposed by a State body. An Post is aware of the requirement for compliance with the code of practice and An Post has not submitted any consent request to the Minister regarding the Rathmines post office premises. An Post has indicated that the change in business model of the six offices will not in any way alter the range or extent of services offered by An Post in these locations.
An Post has over the past number of years been transforming its business by delivering new products and new formats in the way it operates and this includes, among other things, diversifying and growing the financial services products it provides for individuals and small and medium-sized enterprises, SMEs, to include loans, credit cards, more foreign exchange products, local banking in association with the major banks, and a full range of State savings products. An Post is providing agency banking services for AIB and for Bank of Ireland across its network of post offices.
The Government's objectives for the An Post network include harnessing the opportunities presented by e-commerce and the digital economy and delivering a sustainable, nationwide post office network, offering a range of e-commerce, financial and government services. The Government agreed that an amount of €10 million per annum will be provided by the Department of the Environment, Climate and Communications over a three-year, fixed-term period to support the postmasters with funding to be dispersed across the post office network. Funding is being paid monthly for each 12-month period and more than €12.2 million has been claimed by and post to the end of March 2024 for the postmaster network.
The programme for Government recognises that a modernised post office network will provide a better range of financial services and e-commerce services for its citizens and enterprise as part of our commitment to a sustainable, nationwide post office network. The overall €30 million in funding that is being provided to support a sustainable post office network is in line with this commitment.
Michael McDowell (Independent)
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I looked very carefully the text of the Minister of State's speech, which states that Rathmines post office is being converted from An Post-operated to contractor-operated, but the question I asked is about whether the building is going to be closed. I also asked, to use the phrase that was used by An Post, if another premises will be opened, which will be "a bright, modern purpose-fitted office nearby". Is that is in contemplation - yes or no? The Minister for the Environment, Climate and Communications told a public meeting that was hosted by the Green Party that the post office service would be delivered in the same building. The reply I have been given today suggests that a contractor service will be delivered in Rathmines, but I want to know very clearly whether it is proposed to close the Rathmines post office building as a post office and relocate its service to somewhere else in the Rathmines area, whether that is nearby or otherwise.
Ossian Smyth (Dún Laoghaire, Green Party)
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The question is whether the Minister has consented to the sale or disposal of the An Post post office in Rathmines. The answer is that An Post has not sought such approval and would need it. It would need consent, it has not asked for it and, therefore, the Minister has not granted it.
The Senator went on to ask about what the plans are and whether An Post will continue to operate a postal service within that particular building. The Minister believes he cannot intervene in matters that we as an Oireachtas have given An Post a statutory responsibility to fulfil. An Post has an independent board with a clear mandate, and it would be inappropriate for the Minister to comment further on operational matters relating to proposals for specific post offices.
An Post plays an important role in serving the needs of business and domestic customers alike. An Post advises that this is at the forefront of its mandate. The board of management works to maintain the company's sustainability and its relevance to customers into the future. The Minister and the Minister of State, Deputy Chambers, their officials and the Cabinet colleagues are working to support the company to this end. The Minister and the Minister of State, with departmental officials, will reflect on concerns that have been outlined by the Senator.