Dáil Éireann Debate, Thursday - 17 July 2014
11. Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources the policy focus and the discussions he has had in relation to the provision of enhanced services from the post office network; and if he will make a statement on the matter. [31296/14]
View answerI suppose there is no issue that is more debated in Ireland than the future of our post offices. This question goes to the kernel of the dilemma we face as we try to make our minds up on this issue. Some people see State companies as ordinary companies that happen to be in State ownership. Other people see them as a way of providing the community with vital services that would not otherwise be provided by the public sector. What is the Minister's view of where we should go with the post offices? How will he develop them as public service offices?
It is Government policy that An Post should remain a strong and viable company that is in a position to provide a high-quality, nationwide postal service and maintain a nationwide customer-focused network of post offices in the community. Proposals for a whole-of-Government review of the scope for providing additional public services through local post offices were presented to the Cabinet committee on social policy at its meeting on 28 April last. In its initial consideration, the committee agreed to the proposal for a review of the scope of additional public services in the post offices. This process is under way. My Department is examining the initial responses received with a view to engaging in further discussions with Departments as necessary, and with the overall aim of presenting a final report to the Cabinet committee this September.
I see a strong future for the network if it uses its existing strengths to remain a significant player in the provision of Government, financial and other services. Securing the future viability of the post office network in the longer term will entail the network continuing to modernise, as it is doing, to provide the services its customers require. Of course any such developments will need to be subject to competition and public procurement requirements as appropriate. I do not doubt that we will return to this issue in the House, particularly on foot of the work being carried out in the Cabinet committee on social policy.
I thank the Minister for his reply. First, we will not be able to do justice to this issue this morning but has the Minister had even preliminary discussions with his colleague, the Minister for Social Protection, to ensure that the social welfare contract will remain with post offices? That is the anchor, and it can be done by demanding that whoever provides that particular social welfare service has an office on offshore islands and in every rural community. I do not see Tesco or Aldi making that bid.
Second, does the Minister envisage new public services being provided through post offices during the remainder of his term? For example, there was talk of making licences available and so on. Does he see that happening?
Third, the Minister mentioned An Post but post is a declining business. Fewer people use the postal service because of e-mail. Does the Minister see these as post offices with adjunct services or the nearest local delivery point of a range of public services into the future, with the postal service being only a small part of a big package of services?
I have had only the most preliminary discussion on this issue with the Tánaiste and Minister for Social Protection but I have no doubt I will have an opportunity to discuss this matter further with her in the period ahead.
I do see opportunities in respect of the post office network but like any other sector, those opportunities must be sought, developed and brought forward. That is what An Post needs to do and, I am sure, that is what it will do.
The Deputy mentioned the Department of Social Protection cash contract. He will be aware that in June 2012, An Post was selected as a supplier for over the counter cash services for social welfare payments as phase 1 of that payment strategy. On foot of the AIB decision to close a number of branches, an extended range of AIB services is now available through post offices in the locality of those closures. An Post and Aviva have completed an arrangement whereby An Post has taken over Aviva's retail business. In respect of local property tax, An Post was selected by the Revenue as one of three approved payment service providers.
There are opportunities, therefore, for business development. For example, in 2013, Government revenue earned by An Post amounted to €175 million as between social protection - €58 million; the National Treasury Management Agency - €54 million; mails income - €49 million; election referendum - €2 million; TV and dog licences - €11 million; and other - €0.8 million. There are opportunities.
Does the Minister see the post office network as just another competing bidder for contracts or as the State provider of a range of local services into the future? The figures the Minister gave are interesting in that the postal part of An Post is no longer the main income source. Philosophically, where is the Government on this? Does the Minister agree with me that An Post should be the nearest point of contact with as many State services as possible or should it be one of a range of bidders that might win State contracts and might provide those services? That is a fundamental question, and I am very interested to know which side of the fence the Minister stands on regarding it.
I have encountered a number of fences in my first few days as Minister so I do not propose to jump on either side of any fence for the moment regarding these matters other than to agree with the Deputy that there is a tension, although describing it as a tension is a bit strong. Historically, there is the public service remit that we all understand, and then the commercial world and public procurement context in which we all must live. An Post, no different from any other organisation, lives in that world where there are these different imperatives.
I have outlined the many opportunities with regard to Government revenue but An Post cannot rely solely on Government business. Given the challenges facing An Post its key focus will be to secure new revenue sources based on services and products across the board that offer higher value in local communities. Those are issues we are looking at and which the Cabinet Committee on Social Policy examined, and I look forward to returning to them in this House in terms of debate.
We lost some time at the start of Question Time but we have time for one more question. Question No. 12 is in the name of Deputy Seamus Healy.
