The report produced last week under the chairmanship of Mr. Phil Flynn has profound implications for the future of the post office network. It paints an alarming picture suggesting that post offices are technically bankrupt and that, unless immediate action is taken, many post offices, particularly sub-post offices, will face early closure.
The post office has traditionally played a central role in the fabric of Irish life. It is not merely a place in which one posts letters, collects social welfare payments or pays the television licence. For many people it is a vital point of contact with the rest of the community. Rural Ireland has suffered the serious disintegration of much of its infrastructure. Railways have been closed and the number of bus routes reduced. The bank network is diminishing and village shops and pubs are closing. Against that background, the collapse of the post office network would be a body blow.
Post office services in Dublin are also in crisis due to rising rents and staff shortages. While there has not been any formal closure of post offices in recent years, the network has reduced through natural wastage. When an office closes, it is difficult to get anyone to take it over, primarily due to an inadequate remuneration system.
The seriousness of this situation must be recognised. The current position is a recipe for disaster. The Flynn report points out that the network stands to lose more than £83 million in a no-change scenario. A secure future for the post office network requires the consolidation of existing business and diversification into new areas. It is also essential that the network's social dimension is recognised and we must ensure that any EU directive which may impact on the network does so.
I welcome the Minister's recent announcement that post offices are to take over some of the payments currently operated by bank branches. However, it is disappointing, given the urgent need to find new business, that An Post has not yet introduced any new savings product to take advantage of the scheme provided for in the recent Finance Act which is due to come into operation in May. All the major banks and financial institutions are already heavily promoting new savings products. If An Post wishes to get a share of this business it is essential that it moves now.
Following receipt of the Flynn report, the Minister announced the establishment of an interdepartmental working group to consider its implications. I hope this is a genuine attempt to find a solution to the plight of the post offices, not simply an effort to kick an awkward problem to touch until after the next general election. The Government has stated that it will not permit any further post office closures but it must source business to ensure these offices remain open and viable.
Members of the public find it difficult to access a variety of services. Why can more of these services not be made available to post offices? Why should every post office not have an Internet link available to the public? The Money Advisory Bureau, MABs, is playing an important role in helping people on low incomes with their budgets. Could we integrate the MABs into the post office system? These are just some of the potential areas of new business that might be looked at, and I am sure there are many others.
There has been much discussion in recent years about the future of the post offices. Meanwhile, the problems have mounted. It is time for decisions. I urge the Minister to put a deadline on the deliberations of the interdepartmental committee. It must report urgently and appropriate decisions must be made.
