Bríd Smith (Dublin South Central, People Before Profit Alliance)
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296. To ask the Minister for Finance if his Department is reconsidering allowing post offices to become community banks, permitting them to provide all financial services and facilities that banks currently do but with increased advantages and value for communities and ensuring the survival of these important service providers into the future; and if he will make a statement on the matter. [55463/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The role of the Department of Finance in relation to the provision of financial services by the post office network relates primarily to payment services. As Minister for Finance, I have authorised An Post to provide these services under the Postal and Telecommunications Services Act 1983 (Section 67) Order 2016.

An Post is a body under the aegis of the Department of the Environment, Climate and Communications. Responsibility for all other matters related to the post office network is held by the Minister for the Environment, Climate and Communication, Mr Eamon Ryan, TD.

However, I am aware that An Post has begun transforming its retail network by delivering new financial products. These 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 in 2019. An Post invested €50 million in the network to encourage communities to use the enhanced services in their local post office.

The Government is committed to a sustainable An Post and post office network as a key component of the economic and social infrastructure throughout Ireland. This commitment can be seen in the recent agreement by Government that €10 million/annum will be provided to An Post from within the existing capital provision of the Department of Environment, Climate and Communications, over a three-year fixed term 2023–2025. This funding aims to ensure access to important services of social value across the post office network throughout the State.

These include banking services, social welfare and state savings, together with SME services and support.  Currently 900 Post Offices are providing these essential services nationwide, acting as an important community-based provider, in relation both to access to credit and to basic financial services.

As the Deputy may be aware, on 23 November last, I published the terms of reference for a broad-ranging review of the retail banking sector in Ireland. This review will consider retail banking services in a broad sense, including those provided by An Post. The review team is well advanced in drafting the report, which I expect to be delivered to me later this month as scheduled.