Thomas Pringle (Donegal, Independent)
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1304. To ask the Minister for Communications, Climate Action and Environment his response to the Irish Postmasters Union withdrawing from negotiations on the future of the post office network; the way in which he plans to secure the future of the post office network going forward; and if he will make a statement on the matter. [36045/17]

Denis Naughten (Roscommon-Galway, Independent)
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As Minister, I am disappointed that the negotiations between the IPU and An Post have broken down as I had been hopeful that progress could be made by both parties. The An Post Group lost €13.7 million in 2016 with the core mails business losing over €30m. The financials reflect the fact that An Post has entered a period of long term structural decline in its mails business mainly due to the impact of e-substitution on mail volumes. The same trend is apparent in the post office business which, in turn, has impacted on the level of income available to IPU members. These difficulties prompted the various reviews of the network in recent years which aimed to set out a series of measures to secure the future of the network.

The scale of the financial challenges facing An Post has necessitated a fundamental review of the company, including the post office network, in order to devise and implement a strategy to secure a sustainable future for An Post, it’s employees and postmasters.

Naturally, the outcome of the review will impact on the extent to which the recommendations contained in the various reports on the network can be implemented.

We all agree that transforming the postal business will be difficult and will require tough decisions but the new changes will be designed to make An Post fit for a future where the organisation can be confident, robust, begin growing again and be a winner in the digital world. Government policy is to offer Government services online and, in time, it is likely that this will represent the default option for accessing services. For the foreseeable future, however, a segment of the population is not comfortable or able to access services digitally. I believe that 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. The post office network can play a role in simplifying back office functions to facilitate better and more efficient processes.  The potential is there so it is imperative that it is harnessed.

While decisions on restructuring An Post and the operation of the post office network are operational matters for the board and management of An Post, I am monitoring the position closely and hope that a pragmatic approach that will ensure the long-term sustainability of An Post and the post office network can be agreed.  The Government will be briefed once a definitive strategy has been agreed but until such time, it would not be appropriate for me to comment further on this process.