Deputies Frances Fitzgerald and John Gormley have given notice of their intention to raise the matter of the closure and threatened closure of local post offices in Dublin.
Adjournment Debate. - Post Office Closures.
I am glad of the opportunity to raise this issue because of the imminent closure of the post office at Sandymount in Dublin. This follows either the closure or the threatened closure of a number of post offices in Dublin. In Dublin South East alone that includes Merrion and Baggot Street. Donnybrook and Terenure have been under threat and some post offices have closed for a number of months and then reopened. We have a very uncertain picture as far as the service is concerned for local people.
The proposed closure of the post office in Sandymount has caused much concern and disappointment in the locality. This post office is central to the local community, particularly the elderly. Senior representatives of An Post have confirmed that there is a slight extension to this service in Sandymount but it is unlikely to go on beyond January. I ask the Minister to outline what is Government policy in relation to these post offices. The nearest alternative post office to Sandymount is in Ringsend. There is a crisis in public transport in the area and it can take a long time for people to complete their business in different post offices.
There seems to be a high demand for post office services. If one goes into any of them, there are long queues. Last Saturday I was in both Rathmines and Ranelagh post offices and there were queues of 15 or 20 people waiting half an hour for services. We must ask the Government what their proposals are on the staffing of post offices.
There seems to be difficulty getting people to staff the post offices and I wonder why that issue has not been addressed in the past year. I ask the Minister if there are any plans to put together a realistic strategy to address the problems that exist. It appears that employment in the post offices is not seen as a viable option for members of the local community. An Post says that there is little profit for those who choose to run post offices after they have paid their staff and overheads. Surely there should be an incentive plan to encourage local people to be involved and make it financially viable to run these services.
This is a valuable local service and I ask the Minister to outline what plans are in place to ensure that local post offices in the Dublin area survive.
Due primarily to pressure from the Green Party and from other groups, the Sandymount post office will remain open until January. However, it is essential that the long-term future of the post office is secured. The post office is vital for the village of Sandymount where we have seen dramatic changes over the years including the destruction of the church, the disappearance of the fish shop to be replaced by a dingy pub and cutbacks in public transport which have resulted in the loss of certain bus routes.
If we lose the post office, it would be a serious blow to all of us who enjoy the village, but particularly to our senior citizens who are the most frequent users. This is why I have campaigned so vigorously for its retention. I have spoken to the Minister and senior members of An Post. At the moment, An Post has agreed to staff the post office until January but in the long-term we need a permanent postmaster. I hope that when the premises is sold the new owners will apply for the job, understanding the significance of the post office for Sandymount.
The Celtic tiger has brought unforeseen difficulties. The price of property has escalated and it is increasingly difficult to find quality staff. This could present a problem for the new owners. The post office section of An Post is running at a deficit. It has argued that it is operating a commercial enterprise and not a social service but I believe An Post and the Government have a responsibility to our communities. I remind the Government of its slogan at the last election that it would put people before politics. If it is to do so, it is essential that the network of post offices which are so vital to our villages are retained. It should not be that the mighty buck and the bottom line dictate policy all the time.
I thank Deputies Fitzgerald and Gormley for raising this matter. May I point out that the present policy is that there should be no post office closures? However, vacancies within the network arise as a result of illness, death or retirement. In such cases, An Post advertises the post at least twice and actively, canvasses for suitable persons to fill the positions. It is only when a suitable candidate for a vacancy cannot be found that a post office is closed on a temporary basis pending an application from such a person.
In February last year the Minister requested Phil Flynn to carry out a review of the sub-post office network in the context of the Government's explicit commitment to the retention of the rural sub-post office network in the White Paper on Rural Development and given the fact that regional and rural development are cornerstones of this Government's economic and social development policy.
Mr. Flynn's terms of reference were two-fold. First, to review the financial and business environment of the sub-post office network which included sub-post offices in Dublin and, second, to examine options and make recommendations on the sustainable development of the rural sub-post office network against the background of the obligation of An Post to provide a nationwide service.
The facts outlined in the report are stark. The company operates a network of 1,914 offices. This is the highest per capita in the EU. Ninety-seven of these are staffed by the company and 1,117 are sub-contracted offices. A significant proportion of these sub-offices are loss making, with a very small volume of transactions. The post office division made a loss of nearly £3 million in 2000 on a turnover of £3 million. Due to increasing costs and falling margins, further significant losses are projected by the management of An Post based on current tariffs and the existing network structure, rising from £12 million this year to nearly £28 million in 2004. Total losses over the four-year period 2001-04 are forecast at nearly £80 million. These projections have been independently verified as accurate.
Finally, the post office division is dependent on just three contracts for 80% of its revenue; they are the Department of Social, Community and Family Affairs for welfare payments, the National Treasury Management Agency for savings certificates and RTE for licence fee collection. These customers are held on their short-term contracts, all of which are either currently or shortly up for renewal. The implications of the report for the network is clear. The current situation which I have briefly outlined is unsustainable and threatens the continuation of the existing level of services as well as the future viability of An Post. The Government and the Irish Postmasters' Union agree that remedial action is urgently required to ensure the future of the network and the widest range of quality services to its customers.
The Flynn report outlined a wide range of scenarios, options and recommendations to guarantee the future viability of the network. In light of the report the Minister announced on 4 April last that the Government had decided to establish an interdepartmental group to assess options for the long-term viability of post office services. The group's report, published in July, provides the framework for the development of a viable post office network service which meets the requirements of both the customer and the operator. In the context of the report the Government has agreed that short-term actions by An Post need to focus on the pilot introduction of postal agency arrangements and second, that in situations where it is impossible to continue a post office service on an agency basis a Government services outlet network should be developed, having regard to the availability of already existing equivalent community-based or statutory services, to meet the needs of the community within each county.
In addition, the Government agreed to increase the share capital of An Post by 10 million on the basis that this would facilitate the implementation of the overall package of reforms, in particular through payment of the increase for sub-postmasters recommended in the Flynn report which has been implemented by An Post this month. The increase in share capital is subject to clearance by the EU Commission as it may constitute a State aid. We have, therefore, made a submission to the EU Commission for clearance under the State aid regime. The Minister has also met representatives of the Commission to press Ireland's case for an early and positive response to our request.
The Minister also established a partnership forum, chaired by Phil Flynn, to oversee the developments in the network. The IPU, An Post and the relevant Departments are participating in the forum and the Minister is confident it will make a constructive input into overcoming the difficulties faced by the network.
The Minister's five minutes have concluded but if the House is agreeable the Minister will be allowed to continue. In recent times Ministers have come into the House with scripts that obviously cannot be delivered in five minutes – eight, nine and ten-page scripts. The Chair intends to write to the Departments to ask them to provide Ministers' speeches of five minutes' duration or less.
There is fierce pressure on the poor Ministers.
Members will appreciate that it is grossly unfair to the staff of this House, particularly at this hour of the night, to keep them here longer than is required by the Standing Order.
It used to be the other way around.
I apologise, a Leas-Cheann Comhairle.
It is easy to overlook the positive side of developments in the network. Business has grown more than 34% for An Post since it was established as a commercial State company. Prudent investment in automation has equipped the company to be at the forefront of the electronic payments revolution. This is reflected in the agreement with the banks earlier this year in relation to bill-pay facilities and recently with the TSB for counter payment services.
A further very positive development for the network and especially for the rural customer, given the number of bank branch closures, was announced by AIB today. The bank is to link up with An Post in a joint initiative which will see a thousand post office outlets becoming agents for the bank from July 2002. AIB personal customers will be able to lodge cash to and withdraw cash from their accounts using their local post office.
I refer to one of the first commitments the Minister gave, when appointed in June 1997, concerning the post office network. She promised that there would not be a forced closures of post offices. The position has not changed since then. The Minister and the Government remain committed to a viable and competitive post office network. The Minister fully appreciates the work undertaken by postmasters and post-mistresses over the years in terms of providing excellent services to the customer, particularly in rural areas. The Government is committed to ensuring that the public service ethos offered by the post office network will remain.