John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context

Question 187: To ask the Minister for Communications, Marine and Natural Resources if he has in the course of his recent discussions or correspondence with An Post ascertained the number of post offices closed or threatened with closure in the past 12 months; if such proposals are likely to enhance the scope and scale of the postal services and thereby their viability; and if he will make a statement on the matter. [34516/05]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

The development and continued viability of An Post and the post office network is, in the first instance, a matter for the board and management of An Post. As clearly set out in An Agreed Programme for Government, this Administration and the board of An Post are committed to the objective of securing a viable and sustainable nationwide post office network. Notwithstanding the commercial remit of An Post, there is clear Government recognition of the social benefits of maintaining the nationwide post office network.

Accordingly, An Post development strategies for the network continue to take full account of these social benefits. The An Post network comprises the single largest number of retail outlets in the country. In the European context, Ireland still has the highest number of post offices per head of population. In recent years some network restructuring has been undertaken. This activity is in line with similar trends across Europe. In addition to the post office network, An Post has established 2,864 Postpoint outlets in retail premises of which 600 can be used for bill payment. Specifically, as regards the closure of post offices or sub-post offices, it is only when a suitable candidate for a vacancy cannot be found or where there are no applicants, that an office is closed.

I understand that since 1 November 2004, 17 post offices closed and were replaced with postal agencies providing core post office services including social welfare payments and the sale of stamps. In the same period a further 18 post offices closed and no longer provide a service because no suitable applications were received following advertisement campaigns for these contracts. In these instances customers were re-directed to other post offices in the local vicinities. In addition, there are a further 12 post offices that are temporarily closed and for which the company is currently advertising or for which contracts are in process.

It is the Government's objective to maintain the largest, economically sustainable post office network possible. The challenge for all stakeholders in An Post is to generate sufficient profitable business to maintain the network at its current size. While the Government will support the network in any way it can and has demonstrated its commitment in a tangible fashion, with a €12.7 million capital injection in 2003, the way forward is for An Post to enhance existing services and, building on existing strengths to develop new product offerings.

The network has a high footfall and to capitalise on this advantage it is essential that existing and new services are developed to meet customer requirements. The network also has the capacity and potential to deliver more private business especially in financial services and opportunities are actively being pursued by An Post in this area. Indeed, on foot of substantial investment in computerisation, a significant amount of extra business has already been obtained for the network in terms of banking and utility business. At present 95% of An Post's business is conducted through automated offices.

Also underway is a new pilot scheme to automate a total of ten smaller post offices. This will allow the company to determine to what extent, if any, further investment in automation might be justified. The results of this project will be evaluated at the end of the trial period. I have also asked the company to ensure that any strategy for the development of the company should ensure the long-term viability of the post office network and in this light, An Post is currently working on a new initiative which could see the development and expansion of the range of financial services that it can deliver through its network of post offices.

If successful, it could lead to a significant increase in post office business and contribute to the viability of the network.