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Postal Services.

Dáil Éireann Debate, Tuesday - 30 November 2004

Tuesday, 30 November 2004

Questions (28, 29, 30, 31, 32, 33, 34, 35)

Seán Ryan

Question:

73 Mr. S. Ryan asked the Minister for Communications, Marine and Natural Resources the efforts he has made to resolve the dispute between unions and management at An Post; if failure to resolve this dispute will result in serious disruption to the country’s postal service during the Christmas 2004 period. [31270/04]

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Pat Breen

Question:

154 Mr. P. Breen asked the Minister for Communications, Marine and Natural Resources if he has satisfied himself regarding the future of An Post and the need to ensure industrial peace at same over the Christmas 2004 period; and if he will make a statement on the matter. [31206/04]

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Written answers

I propose to take Questions Nos. 73 and 154 together.

I am pleased to say that the Labour Relations Commission has facilitated an agreement between An Post and the Communications Workers Union on appropriate arrangements to deal with the Christmas post. It is good not only for An Post customers but also for the climate of industrial relations in the company that agreement has been reached because further complex and contentious industrial relations issues remain to be resolved in An Post.

The critically important objective of restructuring the company remains an imperative. All parties have agreed that change in the company is necessary, if it is to be financially viable and well positioned to meet the competitive challenges, which can be expected to intensify during the months and years ahead. In this regard, an exhaustive process of negotiation between An Post and the Communications Workers Union has taken place, under the auspices of the Labour Relations Commission during 2004. While some progress has been made, there are still many points of disagreement between the company management and the union.

The challenge going forward is for both sides to redouble their efforts to agree to put in place and to manage the changes necessary to enable An Post to thrive in an increasingly competitive marketplace. Ultimately, it will be to the benefit of An Post and its employees, as well as its customers and the community at large, if agreement on much needed change can be secured. In such circumstances, An Post will be enabled to continue to deliver the kind of service, which is essential for a modern competitive economy.

Pádraic McCormack

Question:

74 Mr. McCormack asked the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the need for the continued operation of post offices in both urban and rural areas having regard to the important network of services provided thereat; and if he will make a statement on the matter. [31190/04]

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Bernard J. Durkan

Question:

77 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources his views on the need to ensure the viability of An Post; his further views on the necessity of the essential network of services provided by An Post with particular reference to the post office system; if he has given directions or intends to so do in this regard; and if he will make a statement on the matter. [31196/04]

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Michael Noonan

Question:

113 Mr. Noonan asked the Minister for Communications, Marine and Natural Resources the extent to which he has identified services most likely to be complementary to the post offices and the postal services generally; if he has considered the way in which such services might best be incorporated in those already provided by An Post with particular reference to the future of the service; and if he will make a statement on the matter. [31188/04]

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Dan Neville

Question:

115 Mr. Neville asked the Minister for Communications, Marine and Natural Resources if he has considered or issued any directives in regard to investigating the possibility of extending the range of services available through the post offices or the postal services generally having particular regard to the need to enhance the viability of the service in the future; and if he will make a statement on the matter. [31187/04]

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Olwyn Enright

Question:

155 Ms Enright asked the Minister for Communications, Marine and Natural Resources if he will take the necessary steps to ensure the continued existence of post offices in both urban and rural areas having particular regard to the vital nature of their services; and if he will make a statement on the matter. [31189/04]

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I propose to take Questions Nos. 74, 77, 113, 115 and 155 together.

The Government and the board of An Post are committed to the objective of securing a viable and sustainable rural post office network as set out in the programme for Government. An expression of that commitment is the Government's approval of an equity injection of €12.7 million for An Post to facilitate the modernisation of post offices. The equity injection was paid to the company in 2003 and has helped drive the ongoing modernisation of the network. It may be useful, at this stage, to illustrate the current strength of the network in that there are 1,000 automated post offices, 475 non-automated post offices, 160 postal agencies and An Post has established 3,000 postpoint outlets in retail premises of which 600 can be used for bill payment.

There is widespread recognition that the best strategy to sustain the network is for An Post to continue adapting to its customer needs within the financial constraints in which it now finds itself. The future of the post office network has been subject to a number of studies and reviews in recent years and many of the recommendations made have been implemented. The post office network at present has a high volume of people passing through the premises, a recognised brand name and a countrywide retail network. The priority for all stakeholders is to maintain and increase the amount of business being done through the network in order to secure its future. In addition, the post office network is geared to future opportunities with the majority of offices now computerised and already computerisation has brought benefits with increased technology-dependent financial business.

As part of the development strategy, An Post has secured additional business for the network, including bill pay facilities for the ESB, phone top-ups through their postpoint service and a contract with the AIB under which the bank's customers can access their accounts through the network. Further opportunities from both the public and private sectors are being actively explored by the company with a view to bringing on stream additional services at the post office counter, where possible.

The main business developments in 2004 in relation to the post network include the collection of payments for Garda fines, Barclaycard credit card payments, Tele 2 bill payments and the sale of Dublin City Council commercial bin tags. In addition, a number of additional lines of new business are currently actively under discussion or consideration.

The post office enjoys a strong relationship with the sections of the population who are currently unbanked, including social welfare clients. With the rollout of eGovernment services, the post office network is ideally placed to capitalise on opportunities arising in this space, especially in the area of e-payments.

Parallel with these developments and under an agreement between the Irish Postmasters Union and An Post, the conversion of sub-post offices from a fixed contract to an agency basis, whereby payments are linked to transactions, is being implemented on a voluntary basis. The key requirement, that a service is provided locally, is being met by the new agency.

The long-term future of the post office can only be secured by meeting the demands of customers. In this regard I have asked the Irish Postmasters Union and An Post to work in partnership with a view to securing existing business and to pursue new business opportunities as they arise. As outlined above, that strategy is being followed with some success by the company.

The overarching objective going forward continues to be the retention of post offices services, in as many locations as possible, in the manner which best meets consumer needs whether services are provided via post offices, postal agencies or the postpoint network.

Thomas P. Broughan

Question:

75 Mr. Broughan asked the Minister for Communications, Marine and Natural Resources the position at An Post with regard to the restructuring of the company; if he has had discussions with An Post management over its proposal to offer staff a 5% pay increase in exchange for agreeing to major restructuring at the company; if the link between pay and pensions will be maintained; and if he will make a statement on the matter. [31245/04]

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The critically important objective of restructuring the company remains an imperative. All parties have agreed that change in the company is necessary, if it is to be financially viable and well positioned to meet the competitive challenges that can be expected to intensify during the months and years ahead.

As outlined previously to the House, An Post management and the main union in An Post, the Communications Workers Union have been participating in exhaustive negotiations under the auspices of the Labour Relations Commission aimed at reaching agreement on restructuring measures to address the company's financial situation. After seven months of negotiations, a set of proposals was produced. These included a 5.35% productivity increase over 30 months in return for substantial changes in work practices. It is my understanding that the CWU is currently balloting members on proposals which emerged from the negotiations. It would not be appropriate for me to comment further on proposals currently under ballot.

The challenge going forward is for both sides to redouble their efforts to agree to put in place and to manage the changes necessary to enable An Post to thrive in an increasingly competitive marketplace. Ultimately, it will be to the benefit of An Post and its employees, as well as its customers and the community at large, if agreement on much needed change can be secured. In such circumstances, An Post will be enabled to continue to deliver the kind of service, which is essential for a modern competitive economy.

With regard to the link between pay and pensions, it has been the practice of An Post and across the public sector to grant pension increases in line with pay increases to serving staff. I am informed that the terms and conditions, including those regarding the matter of increases, as enshrined in the An Post superannuation scheme 1990, are based on those that prevailed in the former Department of Posts and Telegraphs. Notwithstanding this position, I have expressed my concern to the board and management of An Post about the situation in relation to pensioners. The board of An Post has now agreed to a proposal to pay a pension increase, subject to my approval and to that of the Minister for Finance, who has overall responsibility for public service pensions. A response is awaited from the Department of Finance. When that response is received, my Department and the management of An Post will address the situation as a matter of urgency.

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