Austin Currie
Ceist:12 Mr. Currie asked the Minister for Tourism, Transport and Communications the terms of reference he has given to the NESC in relation to the viability plan for An Post; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - An Post Restructuring.
Bernard J. Durkan
Ceist:15 Mr. Durkan asked the Minister for Tourism, Transport and Communications if he will outline his intentions to reverse proposals for sub-post office closures; and if he will make a statement on the matter.
Pádraic McCormack
Ceist:17 Mr. McCormack asked the Minister for Tourism, Transport and Communications if he has any plans to close sub-post offices throughout the country; and if he will make a statement on the matter.
John Browne
Ceist:47 Mr. Browne (Wexford) asked the Minister for Tourism, Transport and Communications , if, in view of the disastrous effects on rural Ireland and some urban areas that the withdrawal of post offices and the downgrading of some post offices will have on communities, he will consider bringing in an outside team of accountants and experts to investigate the whole operation of An Post including (a) operations, (b) losses and (c) future viability, with a view to reporting within six months in which time no decision on any suggested closures would take place.
Michael Bell
Ceist:48 Mr. Bell asked the Minister for Tourism, Transport and Communications if his attention has been drawn to the Green Paper issued by the EC which sets down proposals for the postal services in the community; if he will outline his views on the proposals being made by An Post to close 550 post offices and downgrade 27 head post offices which will have a serious effect on both national and EC cohesion of the postal services; and if he will further outline his views on the EC policy proposals that poor performance areas of the community's postal services affects other parts of the infrastructure causing loss of cohesion of the community.
John Bruton
Ceist:58 Mr. J. Bruton asked the Minister for Tourism, Transport and Communications when NESC had the matter of An Post referred to them; the terms of reference given to NESC for the study; the date of commencement and deadline for conclusion for the study; the reason certain aspects of the An Post plan were excluded from the study; and the reason the Government themselves were not capable, within their own resources, of appropriately identifying the social role of An Post without the involvement of NESC.
Mary Coughlan
Ceist:61 Miss Coughlan asked the Minister for Tourism, Transport and Communications if he intends to take any action to prevent the closure of 550 sub-post offices in Ireland, as proposed recently by An Post.
I propose to take Questions Nos. 12, 15, 17, 47, 48, 58 and 61 together.
On 20 February 1991 I announced that the National Economic and Social Council (NESC) were being invited to conduct a study of two aspects of An Post's proposals to return the company to profitability. On 25 February I formally sought NESC's assistance in conducting the study. The broad terms of reference for the study are to assess the socio-economic implications for rural communities of An Post's proposals for the closure of a large number of sub-post offices and the provision of roadside letter boxes, including an examination of alternative possibilities for increased revenue at the sub-post offices, hardship alleviating measures and other options. The intention is that the study would be completed, if possible, within a period of six months.
The main reason I decided to approach NESC was that the council are a forum for the discussion of the principles relating to the efficient development of the national economy and the achievement of social justice and I considered that they would be a valuable source of advice in regard to the social implications for rural communities of these two proposals of An Post.
I would like to compliment NESC on the speedy and positive way in which they responded to my request. They have set out the principles which should apply to the study of An Post proposals as follows:
First, in view of the importance of the efficient operation of commercial State-sponsored bodies, such as An Post, there should be full transparency of the financial flows between the State and State owned companies. This required the separate identification of the commercial and social functions of public enterprises, such as An Post, with the financial cost of pursuing the relevant social objectives explicitly identified in the accounts. The council consider that it is important that the social objectives are explicitly costed at the outset of the accounting period rather than equated with the financial shortfall at the end.
Second, the council have recommended that current public expenditure should not increase in real terms in the period up to 1993. This forms an integral part of the strategy for economic development which the council have proposed for the decade ahead. Accordingly, if the case is made for the subsidisation of the activities of the commercial State-sponsored bodies to pursue a social objective, or if agencies such as the Department of Social Welfare are to secure a particular level of service from a State-sponsored body such as An Post, the cost of such subsidies or services should be met within the constraints of that strategic approach to public expenditure.
Third, there is a need for co-ordinated planning for both agricultural and rural development, seen as separate but related objectives. The council consider that, while the disadvantages of remoteness cannot be completely removed, nonetheless the provision of appropriate communication facilities and social services, geared to the needs of people living in remote areas, has a high priority in a social policy perspective. In general, such an approach would require intensive area based studies to examine the possibilities for closer co-ordination of the services provided in rural areas, as a background for formulating more broadly based strategies. The general theme of rural development is one to which the council propose to return in their future work programme.
I will be arranging as a matter of urgency for the undertaking of the study based on the principles set out by NESC. NESC will be available to advise on an ongoing basis on any problems that might arise in applying the principles. An Post's proposals will be further reviewed in the light of the findings of the study.
I do not see need for a further specific study of the remaining aspects of An Post's recovery proposals or of the entire operations of the company which will be the subject of intensive negotiations between management and unions in the normal manner.
An Post have assured me that their proposals to retitle a number of their own post offices will have no effect on the range and quality of either mails or counter services to customers.
The European Commission is currently drafting a Green Paper on postal services. The paper, when finalised, will be a discussion document and will serve as a basis for the preparation of proposals for Community measures. As there are, as yet, no formal Commission proposals in the postal area it would not be appropriate for me to express any views at this stage. I should add that there is little, if any, prospect of EC funds being made available to meet trading losses of postal administrations.
Is the Minister who is in charge in favour of closing rural post offices?
Yes or no?
I must again refer the Deputy to his Private Members' motion and he should ask himself the same question.
Deputy Brennan is the Minister, answer the question.
Deputy Farrelly, supplementaries at this stage are confined solely to the Member who tabled the question.
The Government will do what they have to to restore An Post to financial solvency. However, I am not prepared — I have publicly made this clear many times — to engage in such a wide-ranging measure as the massive nationwide closure of sub-post offices without the most detailed study possible——
Not until July.
I am sure that the Deputy would do the same. I again refer him to his motion in this House which asked me not to proceed with them.
What about the postmen?
I am glad the Minister keeps referring to my motion. If I were in his position I would take decisions; he is putting off decisions until after 27 June. Will he agree that that is a cowardly way to proceed——
Does the Deputy want to close them?
The Minister is proceeding in a politically expedient way. In view of the crisis, worsening every day, in relation to An Post, will the Minister come clean and admit to the House the real reason he is not prepared to take decisions?
The Deputy wants it both ways——
The Minister wants it both ways.
On the one hand, Deputy Currie is tabling motions asking me to prevent the closure of sub-post offices but on the other hand he is expressing the view that he would act courageously — whatever that means. Will the Deputy clarify whether he would close them?
When I am on that side of the House I will answer questions.