I propose to take Questions Nos. 562 and 577 to 580, inclusive, together.
As Minister for Communications, Climate Action and Environment, I am responsible for the postal sector, including the governance of An Post to ensure that the company is fully compliant with the Code of Practice for the Governance of State bodies and the governance functions included in the statutory framework underpinning An Post. Operational matters are matters for the board and management of An Post. As Minister, I do not have a statutory function in respect of such matters.
It is Government policy that An Post remains a strong, viable company in a position to provide a high quality, nationwide postal service and that it maintains a nationwide customer-focused network of post offices in the community. However, the environment in which the post office operates is changing and the network needs to change to thrive particularly with the move to digital transactions. This involves harnessing existing strengths such as its trusted brand and the relationship of postmasters with individual communities to build the network of the future. The post office plays an important role in serving the needs of business and domestic customers alike and this is at the forefront of An Post’s mandate. The Government is fully committed to a sustainable post office network which it sees as a key piece of financial and social infrastructure for both urban and rural areas.
The Programme for a Partnership Government envisaged that An Post, the Irish League of Credit Unions and other interested stakeholders would be asked to investigate and propose a new model of community banking, based on overseas models, which could potentially be delivered, inter alia, through the post office network. This issue is being dealt with by officials in the Department of Community and Rural Development who have been working actively with the Department of Finance over the last number of months to progress these commitments. A public consultation process, seeking views on the community banking model, was launched in early March and ran for four weeks. Officials from both of those Departments also met with the Sparkassen Foundation for International Co-operation in relation to the German Sparkassen model, in particular, and obtained detailed information from that organisation. The Department of Community and Rural Development is currently finalising a report on the merits of establishing a local public banking model in Ireland.
The fundamental review of An Post, including the post office network, which will identify the strategic changes and restructuring necessary to maintain the company on a sound financial footing, is nearing completion. All opportunities are being assessed by An Post in the context of the current strategic review. The recommendations of the Post Office Hub Working Group, which includes the community banking proposal, will continue to be progressed between my Department and the Department of Community and Rural Development. Naturally, the outcome of the review will impact on the extent to which the recommendations contained in the various reports on the network can be implemented.
Until such time as the review is finalised and assessed it will not be possible to comment on the level of funding that may be required. Government will be briefed once a definitive strategy has been agreed.
