Peadar Tóibín (Meath West, Sinn Fein)
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33. To ask the Minister for Arts, Heritage and the Gaeltacht her views on the estimate by An Post that 500 post offices throughout the State are unsustainable. [37403/16]

Michael Ring (Mayo, Fine Gael)
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As the Deputy is aware, the post office network is operated directly by An Post, which is a commercial State body. There are 1,131 post offices nationwide, 51 of which are operated directly by An Post, with the rest being run under contract to An Post by postmasters and postmistresses.

In the course of a recent appearance before the Oireachtas Joint Committee on Arts, Heritage, Regional, Rural and Gaeltacht Affairs on 9th November 2016, a representative from An Post indicated that 600 post offices are required to satisfy the company’s contract with the Department of Social Protection, leaving approximately 530 offices which would not be required to deliver this, their largest, contract. These offices would not be considered sustainable by An Post.

While commercial and operational decisions are a matter for the Board of An Post, the Government would ideally like to see the maintenance of a full national network of customer-focused post offices in the community.

The postal sector is undergoing significant change both nationally and internationally, with the increased use of electronic communications leading to a 38% decline in core mail volume for An Post from its peak in 2007. In recent years, there has also been a 17% decline in Department of Social Protection payments and a 20% reduction in Billpay transactions, both of which have been key revenue lines for the post office network.

The Government is committed to working with all stakeholders to find solutions to the sustainability of the post office network in the changing business environment in which they are operating. This end, the Post Office Network Business Development Group, was established to examine the potential for the delivery of additional Government services through the post offices and to identify new business opportunities for the network.

Following the publication of the Group’s report in January of this year, two further Working Groups were established to progress its recommendations. These Working Groups are currently finalising their reports. In addition, my officials have been examining the potential for the post office network to deliver other services, including motor tax and financial services.

I intend to report to Government on these matters in the coming weeks.