Written answers

Thursday, 26 November 2020

Department of Communications, Climate Action and Environment

Post Office Network

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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166. To ask the Minister for Communications, Climate Action and Environment the steps being considered by his Department to protect the post office network; if he will introduce new services to the post office network to increase footfall; and if a sustainability plan will be forthcoming from his Department with regard to the post office network. [39439/20]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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The Programme for Government recognises that a modernised post office network will provide a better range of financial services and e-commerce services for citizens and enterprise, as part of our commitment to a sustainable nationwide post office network.

While it is long-standing Government policy that postal services will not be directly subsidised by the Government, we remain fully committed to a sustainable post office network as a key component of the economic and social infrastructure in both rural and urban areas.

The importance of the post office network has been clearly demonstrated throughout the pandemic where we have seen a range of initiatives through our post offices which have helped support local communities, the elderly and vulnerable.

An Post put in place a Strategic Plan, covering the period 2017 – 2021, in response to the structural challenges faced by the postal sector. In order to implement the Plan, the cost of which was estimated to be in the region of €150m, the Minister for Finance provided a loan of €30m to the company in December 2017 to support the renewal of the post office network (€15m) and the continued fulfilment of a 5 day per week mails delivery service (€15m).

As part of the delivery of the plan the company was split into two distinct business units, An Post Mails and Parcels and An Post Retail.

An Post is transforming its retail network by delivering new products and new formats. This includes, among other things, diversifying and growing the financial services products it provides for individuals and SMEs to include loans, credit cards and more foreign exchange products, local banking in association with the major banks and a full range of State Savings products. Two new dedicated sub-brands, An Post Money and a new business-to-business brand, An Post Commerce, were launched. Investment by An Post of €50 million in the network is designed to encourage communities to use the enhanced services in their local post office.

Government believes An Post has untapped potential to do more and make a further significant contribution across many areas of public, business and community life in Ireland. With an evolving mandate An Post can emerge as a central hub for a wide variety of valuable community focused services. We will work closely with An Post to see if there is scope to channel additional services through the network. All options will be considered fully and efforts will be redoubled to give effect to our commitment to ensuring a sustainable and viable post office network.

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