On the costs associated with the severance package, the figures produced by An Post indicate that if 600 offices were to be let go — I stress that the company gave no indication that this was its intention — this would involve a once-off cost of €22 million.
The premises operated by our members are mostly owned by the postmasters or rented from their owners. An Post makes no contribution towards the cost of these premises per se. The cost of the premises, however, whether owned or leased, is built into the overall remuneration per transaction.
Our members engaged in an effort to promote business some 12 or 18 months ago. We met several prospective clients who we believed might be interested in doing their business through the post office network. We then engaged with members of management and asked whether, if we could get several blocks of business at a price that would be beneficial to us, they would allows us to access the network. The answer was an unequivocal "No". It was their prerogative alone to generate business and to determine what business was done by An Post. It was their ball and they alone would play with it. They made this absolutely clear. We envisage the serious selling of insurance and banking products to be confined to a major issue in 250 to 300 offices. All 900 automated offices will have the ability to provide an automatic bank account, including deposits and withdrawals. The other 400 manual offices will be able to introduce customers to the range of products available and refer them to someone centrally who will process the application for health or travel insurance or a mortgage. Someone qualified will then talk directly to the customer. The postmaster or postmistress, even in a small office, will receive a commission as if he or she has done the selling directly.
A severance package has been in place for three and a half or four years, although it officially terminated in July 2004. We believe it has exhausted itself, as very few are indicating any desire to participate in it. It is not all that attractive. The most unattractive part is that salaries are so low. We have 35 people being paid the princely sum of €8,200 a year for providing a premises and a person behind the counter full time and carrying all the other costs of running a business. How can anyone expect someone to provide a premises and run a business on €8,200? There are 35 offices doing so. Probably more than half the offices receive less than €23,000.
That is the essence of our problem. An Post has enjoyed our services for so little and for so long that it will not come around to the view that reality must be faced and that the cost base on which we operate is far higher than the money it pays us. During the Ryan report we tried to get it to conduct a review of the cost base with us using outside professionals to ensure we would all have figures from which to work. It stated it was not interested in the cost base, since, as far as it was concerned, if John Kane left his post office the next morning, it could get three others to take it on for the same benefits paid to him. It was that cynical.
