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Seanad Éireann díospóireacht -
Wednesday, 27 Feb 1991

Vol. 127 No. 14

An Post Cutback Proposals: Motion (Resumed).

The following motion was moved by Senator Cosgrave on Wednesday, 20 February 1991:
That in view of the requirement placed on An Post in its memorandum of association to meet the social and household needs of the State, as well as its industrial and commercial needs, and in view of the decision of the management of An Post to implement certain changes particularly the closure of 550 post offices, Seanad Éireann instructs the Minister for Tourism, Transport and Communications to issue a direction to An Post under sections 110 of the Postal and Telecommunication Services Act, 1983, to refrain from changes which would have the effect of damaging the social fabric of rural life and increasing the isolation of individuals and disadvantaged groups in society, until such time as it has prepared and published a revised viability plan which the Minister certifies to Seanad Éireann is fully in compliance with the social obligations of An Post under the said Act.
Debate resumed on amendment No. 1:
To delete all words after "That" and substitute the following:
"Seanad Éireann supports the Minister for Tourism, Transport and Communications in his recent decision to engage in talks with An Post in relation to the Company's Viability Plan and urges him to take full account of the economic and social role of the sub-Post Office network.
—(Senator Cassidy.)

Last week when I was speaking on this topic I mentioned some aspects of the proposed plans from An Post and I also referred to the Minister's response. What I want to deal with this week is those aspects which were lacking in his response.

The response from the Government has dealt merely with the non-employment aspect. They have not addressed the fact that 1,500 jobs are to be scrapped. Why did the Minister not consider it necessary to refer that matter to the NESC for examination? He has referred to the issue of the closure of post offices, and the other issues to them.

I said last week that since An Post were set up as a private company almost eight years ago the work force in both An Post and Telecom have proved themselves to be adaptable, pliable and ready to meet the needs of a modern, electronic age. The have proved time and again that they were ready to accept recommendations and proposals from management. They have been co-operative in the extreme but they have now been dealt a killer blow by management with this set of proposals. It is not good enough.

I referred last week to the need for a European postal service which would be uniform in its delivery, efficiency and effectiveness. Ireland is on the periphery of Europe. Ireland, because of emigration, etc., and its history will always, to use the language of commerce, import more letters than it exports. In that sense, the Irish postal service will to some extent subsidise European and other postal services. That is the nature of the postal business. I am not addressng that issue. At Community level recently it was considered very important that the Community would be prepared to resource, support and finance a Community postal service, paying particular attention to those services on the periphery. I want a response to this point. I want to hear from the Minister what attempts the Government will make to ensure that Europe, which is demanding a uniform, effective and efficient postal service will support, pay for and resource the Irish postal service to some extent. They have indicated that they are prepared to examine that. That offer should be taken up by the Government in the context of the present review of An Post's proposals.

The union dealing with the postal workers have asked that this matter be referred to the ESRI. I note that the Minister intends sending it to the NESC. I did not know that the NESC had the resorces to address this kind of problem. They are simply going to buy in support services and consultants when they could have got them in the ESRI. That in itself is ineffective and smacks a little of a dog in the manger attitude — just because the union has proposed something the Minister decides to do something else.

This should be considered in a number of other contexts, for example, we were discussing an hour ago the Programme for Economic and Social Progress and the Government's commitment to job creation. It must also be looked at in the context of rural Ireland. How much more do we have to see? We have seen the attacks on hospitals and schools. We are now looking at an attack on post offices. Shortly there will be no small farmer left in the country. This is part of a plan to raze rural Ireland and destroy the infrastructure of rural communities.

The post office is an essential part of rural life and it should be seen as such. Those who look at An Post from their ivory towers in the centre of Dublin and talk about savings here, killing jobs there and closing offices, are unaware of the realities of life as they exist outside the Pale. The Government should consider that. This is the reality: nobody cares any more. We are not taking a close look at the impact this will make on rural Ireland. The Government should refer the whole plan to the NESC and not just two-thirds of it. They should also assess the impact of the job losses. The Government should address the social aspect of the postal service and see that it is taken into consideration. We should address the social impact of An Post's proposals, how they will affect the rural infrastructure and the intricate sets of relationships in small rural communities — the importance of the arrival of the post as a means of making contact in a community which is badly under-resourced in terms of social workers and other social contacts. The reality is that the postperson in many parts of rural Ireland is doing a job that will have to be done by somebody else if we take away the postal service. If post boxes are put at the end of lanes there will be no contact with the people. That social aspect must be looked at. It is easy for us in the centre of the metropolis to forget about what life in the country is really like. We should address that aspect. We need a social audit to assess the damage that is likely to be done to the social structure of rural Ireland as a result of the implementation of the swingeing cuts proposed by An Post. They are not acceptable. They are a slap in the face to a group of the most pliable, accommodating, supportive and co-operative workers. They have responded to change.

The Senator's time is up.

I thought the Chair would not interrupt me when I was supporting his part of the country.

Acting Chairman

I appreciate the Senator's support but I must abide by the rules.

We need to have a drastic re-assessment of where we are going. We need to look at the social aspects, carry out a social audit of what we are about to do and then make our decisions on that basis.

It is always a pleasure to hear my colleague, Senator O'Toole, in full flight defending rural Ireland. Long may it continue.

I was in Leitrim last Sunday and I heard the Senator criticise the local football team.

We are like the Arabs; we fight among ourselves but we do not like outsiders criticising us.

The Minister in his reply to this House last week responded in the spirit in which the motion and the amendment was put down. Obviously the outcome of the deliberations of the NESC report will be of great interest to rural Ireland. It is important that this House should put on record that this viability plan — I use the word "viability" advisedly when it comes to a body like An Post — and the threatened closure of 550 sub-post offices is, as has been said and as should be repeated as often as possible, a threat to the existence and viability of rural Ireland. I often wonder if there is some hidden agenda on the part of semi-State bodies to wipe out the west of Ireland. Are there people, as Senator O'Toole said, who sit in ivory towers in the metropolis, look at figures and do not relate them to human beings?

It is a marketplace economy which the Senator's party supports.

Acting Chairman

Senator Mooney, without interruption.

It looks as if I will have to call on the protection of the Chair throughout my short contribution and no doubt the Chair will rise to the occasion. Senator Kiely comes from the same part of the country as Senator O'Toole, he will be able to speak his language and put him in his box.

Acting Chairman

The Senator should refrain from provoking their interruptions.

No matter what part of rural Ireland one comes from, whether Kerry, Limerick or Leitrim, people feel increasingly powerless. They feel threatened, isolated and frustrated by the democratic process. This is a real danger. It is something that has crept in over the past couple of decades. Viability plans such as those proposed by An Post are nothing new to rural Ireland. There have been all sorts of viability plans proposed by semi-State bodies down through the years, all of which were to save rural Ireland or for the general good. Ultimately they turn out to be a damp squib and more and more people leave. This proposal is the thin end of the wedge.

I could not help but chart my own existence as a small boy in Drumshanbo in County Leitrim up to the present day in terms of the threatened and actual withdrawal of services from my small community. In the late fifties it was the branch railway lines. The economic experts of the day told us if the railway lines were closed down viable road transport for freight would be provided and there would be an increase in bus transport so that we really would not miss the trains at all. The closure of the station in Drumshanbo cut many of us to the quick. Even though it is 32 years ago I still remember it as if it were yesterday such was the impact it had on my young life.

Don't forget the canal.

The next pillar of rural society — Senator O'Toole will appreciate this — was the national school. National schools located in rural parts of the country were done away with. Schools where, dare I suggest, the education one received was in some cases superior to the education many children are receiving in our central schools today. The people who taught in those schools were usually of the community or were related to members of the community, they were heavily involved and made a contribution to the area and to the overall general education of the young people in their charge. They were small schools but their size and intimacy created a pride and an identity with the parish in which they were located. Now the children are taken by bus away from their natural environment.

We had the closure of indigenous industries. Recently in my part of the country the Arigna coalmines were closed, despite protestations and an entire community rising up in anger and saying "stop". John Healy often said: "nobody shouted stop". The people of north Roscommon and Leitrim shouted "stop" and did so for the past number of months. Yet, nobody seems to be listening.

In recent times there was a subtle attempt to reduce manpower at rural Garda stations. In Drumshanbo, for example, we had three gardaí and a sergeant. Now only one is living there. This latest blow at the already stricken heart of rural Ireland is really too much for ordinary people to accept. Now we face An Post and their viability plan. I compliment the Minister, Deputy Brennan, and acknowledge the presence of Deputy Lyons, Minister for State. He comes from a mix of a rural and urban constituency and will fully appreciate much of what I am saying.

Many of the things we are saying about this plan have been said before but they need to be repeated. There is need for a root and branch investigation of the activities of An Post. Allegations of mismanagement have been made, especially in Dublin. I have before me a letter I received from representatives of the staff in the Carrick-on-Shannon post office from which I quote: "The ironic part of the plan for the post office in the provinces is that due to mismanagement of budgets by the company in the Dublin region the company has incurred losses almost equal to the total company loss for 1990." I would like to ask the Minister, a number of questions he may answer if An Post condescend to give the answer considering the attitude they adopted towards an invitation to the Oireachtas Joint Committee on Commercial State-Sponsored Bodies. One wonders whether they are the people in the ivory tower.

Can the Minister give a breakdown of the figures for the Dublin region and the provinces in relation to income, turnover and expenditure? Allegations have been made that the overtime bill in the Sheriff Street sorting office is somewhere in the region of £20 to £30 million. I have not been able to get a specific figure. Is it true that the company allowed wholesale featherbedding especially in the Dublin region in relation to staffing and failed dismally to exercise their obligation to make An Post a viable entity? Figures seem to suggest that when An Post was first created as a separate entity they had £29 to £30 million of a surplus. That does not compare well with the massive debt they now have and which they suggest they will continue to have unless they take this action.

Senator O'Toole and others touched on the discussions at European level calling for an equitable distribution of the postal services throughout the Community. Our location and demography should entitle us to some assistance with that. We are grateful to the communication workers union for taking the trouble to put together a submission in relation to the viability plan. In the context of policy proposals in Europe under the heading of "possible need for community to invest in cohesion", they state that poor performance of any part of the Community's postal services affects other parts of the infrastructure, causing loss of cohesion in the Community. I was astounded to read — I hope it is not true, although it was not rebutted — in one of the newspapers last week that a faceless civil servant in Brussels, when asked about the possibility of money being given to ensure the viability of the rural postal service in Ireland said in effect: "We will not support lame ducks; if the post office cannot pay for itself that is their problem not ours." That is some friend to have in Europe. We are told we are a very important part of the European Community, that we have a contribution to make, our peripherality will be taken into consideration and we will be given more structural funds, that because we are such decent people we will not be allowed to go down the tubes.

We are facing a real crisis when it comes to pass that semi-State bodies charged with certain responsibilities can, seemingly without even having half a sleepless night, come up with proposals that will wipe out the identity of entire regions. That is the core of my argument. It is not just directed at An Post but at any semi-State body or agency which is within the public domain. They have a moral obligation to ensure that there is an equitable balance between city and country. Those of us who live west of the line, or outside the old Pale, have every reason to be angry, frustrated and annoyed when we see the steady erosion of the services we took for granted.

Put at its simplest, if you as a family person were considering locating in a part of Ireland that attracted you because of its environment, or because of its ready access to larger centres, would you not have second thoughts if over a period of years you saw the community lose its Garda station, post office, national school and all other State agencies? Unless you wanted to be a hermit you would not live in a community like that. Many of these communities were, and should be, permitted to be, viable and strong with a very real sense of identity and pride. I am not a great man for remembering quotes from books I read, no more than I am at being able to tell jokes. I wish I had that ability. Senator O'Toole has a wonderful ability for doing that.

I just tell the truth.

In Knocknagow the one line I remember is when Matt the Thrasher went out to play it was for the good of the parish. That was the ultimate. I had nothing to do with medals, power or glory, but for the good of the parish. At the end of the day that is what rural Ireland is about. That is the real Ireland, not the one that has been portrayed here and is often portrayed in the national media. I fully support the efforts of the Minister to ensure that An Post are put back in their letter box and told that their plan is not on.

I came to the unfortunate conclusion as we entered 1991 that rural Ireland is being abandoned, either by design or mismanagement and no longer counts. Many important infrastructures are under serious threat. Rural Senators have already outlined some of them — schools, Garda stations, railway stations, the health service, a county road system that is in the last stages of utter collapse due to lack of finance, housing needs put on the back burner, emigration which is sucking the blood from rural Ireland, unemployment which is like a cancer and a serious agricultural crisis facing us in the near future which will wreak havoc.

Our social conscience is being privatised by the semi-State bodies. People no longer count. It is bookkeeping and financial rectitude that counts, not the people or their right to a living or to a service. If the An Post plan is put into operation it will be the final act which will cause the disintegration of rural Ireland. It must be scrapped and not just until after June. The Minister must give a commitment to put the whole plan before the NESC. Do the planners understand the full implication of this plan on rural Ireland? Do they appreciate that rural Ireland exists or do they think Ireland ends at Newlands Cross?

I want to make it very clear that rural Ireland is entitled to the same industrial and economic opportunities and service as the city of Dublin. I do not want to create an urban rural divide but it seems as if the eastern seaboard is all that counts. We are repeating history in that those inside the Pale will survive but outside the Pale, forget it.

I attended meetings last Friday and Monday and the more we thought about the plan the more we realised that the group of people who devised it would be entitled to the GUBU award of the year. For the sake of £1½ million, they were putting in jeopardy the jobs of 1,500 people and wiping out 550 sub-post offices. Go down the road and see the Palace of Versailles where £17 million was spent to upgrade Government offices. I appreciate that is worthwhile but go down to Newtown or Garrykennedy in my constituency and tell them that they are going to lose their post office for the sake of £1½ million and that 1,500 jobs will be lost. If they go to the Spring Show in May and visit Merrion Street, they will see the coloured lights and will not know whether they are in the White House or in Buckingham Palace. One must relate the cost of providing that office to the cost of other services. I regret that that must be put on the record.

I strongly support the motion. The plan is an act of economic lunacy. We in rural Ireland endeavour to attract industries to our different towns and villages because nobody else will do it for us. The Chair comes from rural Ireland and he knows that if the service is withdrawn from a village or town, industrialists will not locate there. We are in the process of welcoming the decentralisation of the Revenue Commissioners to Nenagh; 200 staff are going to be transferred there. Perhaps some people might not like to see tax offices in their area but we are delighted to welcome them. It will be a boost for the economy. They are expected to create at least 50,000 letters per year. Where is the sanity in decentralising one service while at the same time downgrading a post office that was built only 15 years, one of the most modern post offices in the country? It will not be enough for the Minister, Deputy Brennan, to take this back to the drawing board, he will have to get the plan and tear it up. He will have to pick a mixed team, a rural team, not a team from Dublin only, to draw up a plan.

We take pride in our capital but there is more to Ireland than the City of Dublin and I hope and pray that the Minister will live up to the firm commitment he has given. I attended North Tipperary County Council meeting yesterday and we were at one on the matter, politics aside. We said that if the plan was introduced it would be the final nail in the coffin of rural Ireland. The post office is a major piece of infrastructure that we have to defend and I for one repeat my call on the Minister who is a rural man himself, coming from County Galway. We are fighting for survival in rural Ireland. We are looking beyond 1992 and it happens to me that the people in rural areas will not have a say in what happens to their country.

How could anyone suggest putting a mail box at the end of a five mile road in rural Ireland and expect people living on that road to come down every day, in hail, rain or snow, to check the letter box? A pensioner or a person looking for an invalidity pension might have to come down to the end of a boreen — a boreen that is linked together with potholes. I firmly oppose it and I can assure you, a Leas-Chathaoirligh, that rural Ireland is up in arms over this proposal. It is no good saying that it is going to be adjourned. It will have to be scrapped and redrafted with a firm commitment to the survival of services such as the postal service in rural Ireland.

I am rather loath to come in at this point following on from my colleague from North Tipperary, Senator Ryan, because it may appear to be political interference. Senator Ryan knows where I stand on this issue. In a sense, this discussion is superfluous in view of the decision made by the Minister last week when he instructed An Post to defer any decisions until such time as the NESC would review the situation. Minister Brennan coming from a rural area as he does, would understand the position in rural Ireland in relation to post offices. I agree with all the other speakers who say that to implement the plan as proposed by An Post under present circumstances and in its present from would have a disastrous effect on rural Ireland.

It is important for people in the Dublin area to understand exactly what the post office means to the large number of villages and small towns in the country. With modernisation and the closure of a number of small schools, the post office in the small village, together with the local pub and church, has become the focal point for people who live in rural areas. We may all have had the experience when traversing the country of getting lost in a by-road and of being happy to see the post office because you know that you would get friendly attention and advice and direction there. It is the place one always heads for.

Post offices in rural Ireland also fulfil a very important function for people receiving social welfare benefits. The local postmistress or postmaster, or people who work in post offices, know the areas in which all the old people live and if, for any reason, the pension was not collected on a particular day the word would go out and neighbours would be asked to check that everything was all right. From that point of view alone, apart from the professional services they give, the social functions of the post office is extremely important. That has to be acknowledged and recognised. I am delighted with the Minister's decision.

One could question the motives behind An Post's proposal. Times have changed and modern communications have put the present difficulties of An Post into perspective. Many jobs performed in the post office a number of years ago have gone by the board because in business terms the fax machine has virtually done away with the ordinary business letter.

One would have to ask why An Post did not get involved in other types of financial services. The building societies were quick to move in and to press for the opportunity to diversify when they felt that the brief they had started with was being eroded by competition from other sources. Why would An Post, rather than closing down many of those vital links that are so important to rural Ireland, not introduce other financial services and compete with commercial institutions such as building societies, banks and so on? They have access to small savings and many people would hope and expect that they would cater for people with small sums to invest.

Reference was made this morning to money lending. A state agency like An Post could perform an important service for the small saver by diversifying, giving them the opportunity to do all their financial business with the post office. They are many decisions that could be taken to improve the services and viability of An Post rather than a blanket decision to close a certain number of post offices throughout the country.

To blame a specific Minister or the Government is unfair because the whole idea of semi-State bodies is that they should be autonomous as for as possible. You cannot tell people that they are an autonomous body who may draw up policies and implement them without interference and then say that they may draw up whatever policies they like but that they will not be allowed to implement them. There is a distinction to be made between a Department and a semi-State body. Having said that, one recognises that the Minister had a very difficult decision to take when he saw the blueprint for bringing An Post out of very extreme difficulties.

One must recognise the fact that An Post are in serious difficulties. The amount of money An Post lost last year and are expected to lose this year is enormous. Closure of a number of post offices throughout the country would result in very small savings in terms of the overall financial structure of An Post. However, the social effect of such a decision would be enormous.

I want to compliment the Minister again on his intervention at a very timely stage. Lest anyone would assume that this is a ploy with a view to the local elections, if they are going to be held in June I hasten to add that if so the Minister would have instructed An Post not to reveal this until after the local elections. I think we will have to nail that one. The fact that the Minister has intervened at this stage shows he is concerned about the situation irrespective of whether elections are held in June or at some other time.

If the House is agreeable, I would like to share my time with Senator Jackman and Senator Hourigan.

This proposed rationalisation plan by An Post can only be part of the continuous threat to rural Ireland, which has been devastated by depopulation arising from emigration, and other problems. It is being devastated by the closure of many small shops and by the continuous threat to them posed by supermarkets. It is being devastated by the closure and rationalisation of schools and by the ratinalisation of the co-operative movement.

In my own constituency the implications of An Post's proposal are quite horrendous. Apart from the ghastly plan to get rid of sub-post offices and to introduce green letter boxes, it is proposed that Cootehill Post Office be changed from a district office to a sub-office; that Belturbet office be changed from district office to sub-office, although Belturbet has much unemployment already. It is proposed that the status of the offices in Carrickmacross, Clones and Castleblayney be changed. It is also proposed that both Cavan and Monaghan be reduced from head offices to district offices. That will depress the commercial life of those towns and will add to unemployment and break public morale. It is a ghastly and unacceptable proposition.

I ask the Minister to reply to the following point. The Minister, Deputy Leyden, and his colleagues speaking in Boyle, County Roscommon, the other night stated categorically that the proposals to introduce sub-post offices and green boxes had been vetoed and were now history. This would be very good news if it were not at variance with what the Minister, Deputy Brennan, said in the House last week. Was Minister Leyden right when he said in Boyle that the proposals were permanently vetoed or was he misleading the people of Boyle? That would be horrendous if it were the case.

My essential proposition to the House is that the proposals to close the sub-post offices are a grievous threat to rural Ireland, are most unacceptable and must be blocked. I am not so sure that Senator McKenna, despite his idealistic naivete, is right to rule out the local elections as a consideration. I would be of a more cynical frame of mind and would be of the view that the local elections are a factor in it.

You are a cynical person, Senator.

I would want an assurance from the Minister that the position will not alter in a post-local elections situation. Essentially, I rest my case by saying that this poses a grievous threat to an already threatened rural community. It presents the horrible spectre of increased unemployment and the potential emigration of post office workers. It is important that at every opportunity we voice our horror at it. I look forward to a specific commitment from the Minister at the end of tonight's deliberations that the matter is history at this stage and that it will never come to fruition because nothing less than such a commitment would be adequate for this House.

I thank Senator O'Reilly for giving me five minutes of his time. It is interesting that when we were debating the Programme for Economic and Social Progress today that the whole emphasis of the Senators who spoke was on the plight of the voiceless and the unemployed. What I find extraordinary is that employment is being wiped out here; instead of creating jobs we are actually getting rid of them and it is something I feel will be raised again and again when we are talking about rural development and the creation of employment. In the PESP we found there was little or no vision for the creation of those jobs. What we have are closures: 48 of those 554 closures are proposed for urban areas and what surprises me, and I think Senator McKenna would agree, is that 12 months ago the Minister requested that this rationalisation take place. Local elections were to be held last year, now it is supposed they will be this year. There is no doubt that management are opposing political pressure and we do not accept that this proposal was not a ploy to force the situation. Fianna Fáil councillors at the Limerick County Council meeting were under no illusion that this had to be done so that it would not become a local election issue.

What surprises me is that NESC or the ESRI were not used at the beginning when this rationalisation was supposed to take place. They ought to have been commissioned before the chief executive and the board were directed to rationalise. It was then that we needed to be told the social implications. In the PESP we have a business plan which does not take any account of social obligations; in paragraph 89, page 60, of the PESP there is the following quote: "non-commercial obligation to be clearly defined and taken into account in assessing company performance." The blueprint was there to ensure that the social aspect would have been considered before the plan was implemented.

Regarding the Pale and its existence, we may as well redraw the map of Ireland to ensure that everybody knows of the existence of the Pale. We outside the Pale are being asked to pay for the inefficiencies and soaring costs of the Central Sorting Office in Sheriff Street. That is how I see it. I will not go into the closure of schools or the cuts we heard of in the news this evening which are going to devastate the rural parts of this country.

In those rural areas you have entrepreneurs, despite the assumption that all entrepreneurs are urban based. Those entrepreneurs were the people who kept the post office, developed it into a thriving business, employed people, functioned as social centres and as true integrated rural development centres. We talk about integrated rural development but it means nothing at the moment. What exists is integrated rural development through those post offices. They are not just a rationalisation for costs; we are retaining a culture and a communications centre. As one of the Fianna Fáil Senators said a moment ago, they are true communication centres. We will be very vigilant to ensure that something is done about the £16 million, which will turn into £24 million if rationalisation does not take place. I find it hard that the economists cannot find £1.5 million elsewhere. It could be found without interfering with the sources of employment and with the social fabric of this country. I hope that in the new plan there will be a balance in relation to anything that is so important to us throughout the country.

To make the best use of my time I do not intend reading this long motion tonight for the consideration of the Seanad. From listening to our colleagues it is obvious that there is full agreement that the plans proposed by An Post should be left aside. It is a very roundabout and costly way of saving a small amount of money. In order to save £1.5 million one is talking about the destruction of 1,500 jobs and the closure of 550 post offices in rural areas mainly. That is not the whole story. Linked in very closely with these developments will be many people who will be indirectly affected.

I agree totally with what Senator Mooney said earlier. Any diminuition of the kind of scenario he outlined would be very serious. One of the last vestiges we have to times past is the rural post office and if we are now to close them, in addition to the various other closures that have been referred to, it would be very serious. In rural Ireland it would cause devastation of the entire community.

I am very pleased with what the Minister has directed to be done before any further move, which is that there should be a thorough investigation by the NESC of this whole operation. In the light of the resolution which we have put before this House this evening, we are asking that this plan be left aside until such time as the NESC have prepared and published a revised viability plan which the Minister certifies to Seanad Éireann. The Minister has undertaken to come before this House with a commonsense plan and I would accept that rationalisation is necessary. There is no point in burying our heads in the sand. Things cannot go on now as they did 50 years ago. We do not, however, have to devastate and destroy the whole social fabric and base of society in rural Ireland. I would appeal to the Minister to make certain that the team who prepare the next plan are people with a clearer and more positive understanding of life in rural Ireland and of the importance of various amenities. Too often people in ivory towers believe that they know what is good for the Irish nation, for the Arignas or anywhere else. It is not long since we were discussing Arigna here. It is regrettable that while we do have a fair measure of success in job creation, we are eroding that success very seriously by these proposed closures which are massive and numerous.

I appeal to my colleagues here to vote en bloc for this motion to express solidarity. I appeal to the Minister to come forward with a properly thought out plan that has rationalisation to the fore and which does not resort to cheese-paring nor destroying rural Ireland. We know from a tourist point of view that maintaining rural Ireland is essential so that our economy does not merely survive but can progress further down the road. I wish to say much more but I will conclude by asking that we all express our solidarity by uniting on this motion calling on the Minister to do the correct thing when the time comes.

This motion on An Post is one of the most important motions to come before us for some time. It is not simply a matter of the post office; it is a matter of our whole attitude towards State services, particularly in rural areas. I have no doubt that the policy regarding the closure of rural post offices is one of long standing. The sequence of events to achieve such a management aim are to run it down, reduce the service, let it die, make it unviable and then, when it is totally unviable, say that we have no option but to close.

Everything in this plan lacks imagination. The plan smacks of people who knew what they wanted and were determined to get it. There are a few fundamental questions we should ask the people who drew up this plan. It is intended to downgrade Ballinrobe post office to a sub-post office and there is talk about closing 550 sub-post offices throughout the country. I look around my local town of Ballinrobe and I see three of the associated banks maintaining offices there. I also notice that despite the saving and staff cuts brought by computerisation over the years, the two major banks have had to extend their offices and increase their staff since 1974. Banks are not charitable organisations so the charge cannot be levied that they did this for national or altruistic reasons. What they did was broaden the range of services on offer; they tackled their problems with imagination and found that the major workload reductions achieved through computerisation were more than offset by increased demand for their services.

Let us look at the situation with An Post. During the same period they proceeded to run down the Post Office Savings Bank. They adhered to totally outdated work practices. They made it totally unattractive for someone to invest in the local savings bank through An Post. Up until a few weeks ago one could not withdraw in excess of £50 from a sub-post office without the book having to be sent to Dublin, thus necessitating a delay in getting it back. The sum has now been increased to £100.

In the case of stamps, there was a more ingenious method of ensuring that sub-post offices did not get credit for the sale of stamps. What they did in that case was quite simple; any large user of stamps was approached by Ah Post and asked to take a franking machine. The result was that instead of your stamps being recorded in the local post office the sale of those stamps was recorded in the main post office maybe 20 or 30 miles away. To give a very simple example of how significant this type of operation can be, I noted, according to the report, that the 970 smallest post offices earned between £2,800 and £6,000 per annum. I live in a village that boasts two shops, two pubs, the church, the school and a very small vocational school. When I asked my local postmistress what her earnings were, without giving away any State secrets, she told me they were in excess of this £6,000 limit. The reason was quite simple; we made it our business locally to defy all the cajoling of An Post. The local business people did all their business in the local post office and we kept the business there. But we were doing the job that An Post should have been doing. Despite their best efforts we kept the business where it was most convenient.

I accept that An Post is in dire financial circumstances. That is quite obvious. But again, it is quite obvious if you read the report — and the report is totally disingenuous — that this happened not because of the cost of rural post offices but because overhead costs soared in the period from 1986-90. The fact is that none of these extra costs was incurred in rural Ireland. The reality is that the local postman is not earning much more in excess of what he was earning at that time. Therefore, that is not where the loss is incurred and that is not where the blow should fall.

The other thing about this report is that since sub-post officers are paid by the piece and the total payment made to 500 of them is in the region of £1.5 million what saving will be made because, when they transfer the business from one post office to another they will, in turn have to pay extra fees to the post office that gets the extra business. The only possible saving that could be made is in the long term in terms of capital in the cost of computerising and equipping sub-post offices. Sub-post offices are great value for money. £2,500 to £6,000 a year for the 970 smallest of them. The reason, of course, that the sub-post offices are willing to work for this meagre funding quite obvious; it is for the same reason that people seek an agency for newspapers. It is because the profit is not from the post office or the provision of the facility, the service, the building, the heat, but from the business that that normally generates in a local shop. So, it would seem from a management point of view that there is no financial justification in the proposal and that it was a "copout" to achieve aims that would just make life more simple for top management having to manage fewer outlets.

The second thing I would draw attention to is this proposal regarding roadside mailboxes. Many people have accepted these voluntarily and, if people accept them, I have no quibble with that. But there are also many people who do not want them. Let us take the situation of a pensioner without a car living a mile or a mile and a half up a boreen. Monday morning comes and that pensioner is wondering if there is a letter in the post. He or she trots the mile or the mile and a half down to the little box, opens it and there is nothing there so he or she trots all the way home. The same happens on Tuesday and Wednesday and so on through the week. I have no doubt that if there is a cost overrun in that and if it could be proved that there would be very significant savings in changing the present system of daily deliveries to every house it could be done. If they deigned to consult with rural communities rather than having these experts come round our areas in a covert manner and becoming annoyed that anybody should know they were there measuring the roads for the boxes, I have no doubt that a much more equitable and better system could affect the same cost savings and still provide the basic service the people want.

There is also a proposal to downgrade many of the regional post offices. From a mail delivery point of view, I cannot quibble with this as it is about time we reformed the whole method of mail distribution. I am not totally convinced in the long term that it is going to be as efficient, as is stated, to abandon totally the railways but, that may be something for another day. However, I could see, just as I pointed out in the case of the banks, that the staff who will now be reallocated from these post offices could — and I am sure the post office workers would be willing to give this flexibility — be put at other work which would provide the public with a much better service. Because, at the end of the day, the consumer has to be the overriding interest of the workers, the management and the Government regarding An Post.

I said recently that I could see a whole lot of new roles for An Post in the future. I could see that they could accelerate out of their problems rather than back themselves into a corner. They could make all these cuts and come back here — as I would foresee they would if they implemented this plan — in five years' time trying to make more cuts because they were still totally unviable. They can accelerate out of this with a little imagination. There are very obvious areas in which this can be done. They could, for example, start providing a whole plethora of social welfare services on an agency basis for the Department of Social Welfare. A very obvious first step would be to remove from the Garda their involvement in regard to signing the dole on a weekly basis in rural Ireland and let them get on with the work they should be at, police work. They should not be made a type of super social welfare officers signing dole forms each week.

The second thing they could do is provide a comprehensive banking service that would be particularly convenient for old age pensioners, where there would be a one-shop situation. Again, we looked to the banks to see if this was viable. I brought my point home at a meeting the other night when I said there is enough money there, money that is going to the Associated Banks, which could be going into the post offices and be at the disposal of the State if conditions were made attractive. I brought it home like this: the banks, not being altruistic, do not run services for social convenience but they find it convenient to run travelling banks at great cost, considering the staff costs they have compared to a sub-post office into the most isolated spots to collect the money because they know that the total accumulation of that money is very large. If there was a competitor and a realistic alternative, if there was a system whereby the social welfare recipient could make his banking and his receipt of money on the same day I have no doubt they would opt for the convenience of post office banking. It would be there five days a week. Many a person would tell you in the small hamlets and villages of Ireland about the queue outside the travelling bank every week to do business, to pay the ESB bill and the phone bill.

Unfortunately I have not got enough time to go into other aspects but in passing I will mention other areas where services could be provided. For example, there is the whole question of paying local authority fees, on car tax, passport forms, etc. I would have to say there is only one thing in this plan that makes sense to me. I accept that in this day and age we are looking towards equality of service and equality of cost throughout the State and therefore, I cannot quibble with one proposal in the plan that is, one day delivery to everybody. That makes sense because in this day of fax and whatever, most people will accept that that is a reasonable proposal.

Molaim an tAire as an gcéim a thóg sé an NESC a chur ag athbhreithniú an phlean seo. Bhí misneach aige é sin a dhéanamh. Bhí jab aige len a chinntiú nach sáróidh an bhainistíocht é, ach tá muinín agam go mbeidh sé in ann chuige ar ball.

Senator Cosgrave is due to wind up the debate as he introduced the motion. I think he has no objection to my going a little into his time if that is necessary. I will be as brief as possible.

Acting Chairman

I will have to call Senator Cosgrave at 7.45 p.m.

7.50 p.m. will do.

I never thought we would be here debating the closure of so many post office. May I say that the general public view of this proposed action by An Post to reduce their workforce by 1,500 and to close 550 post offices throughout the country is the greatest display of an uncaring attitude we have seen by any public body in a long time. It would appear that An Post are far more intent on making profits than giving a service. I do not think that was ever intended when the service was handed over by the Government to them. They may have got warnings to pay their way in so far as it was possible but I do not think the Government ever envisaged a withdrawal of the service we have known for many years. Worse still is the withdrawal of the postal deliveries to the isolated and remote areas of this country. I know the Minister has intervened and has granted some delay and I know that some people have accused the Government of intervening simply because of the forthcoming local elections. They have suggested that they are waiting until the elections are over and then the hatchet will come down again. I appeal to An Post, even at this late stage, to postpone for at least one year any attempt to close even one post office in this country.

I understand the European Commission is about to publish a report on postal services in the European Community and part of that report suggests that the Community will investigate whether it would be appropriate to make Community funds or other forms of support available to help certain regions which at present do not have the advantage of a fully adequate postal service. If regions thus disadvantaged cannot find the resources to invest in an improvement of services the Community will investigate whether the investment of some of its central funds is appropriate in order to promote Community cohesion. It would be a great pity if we have the closure of post offices here and then find the European Community coming up with a plan which could assist the continuance of those post offices. Once a post office is closed, assistance from Europe will never see that post office open again. I earnestly appeal to An Post to postpone any action with regard to the closure of post offices or the withdrawal of delivery services. It would be remiss of me to take part in this debate without mentioning that one post office has already closed and it is in my area. I will briefly outline how this has happened and it will indicate the uncaring attitude of An Post. We designated the village of Tallaght for updating about three years ago and since then Dublin Country Council has spent £720,000 on that, with, may I say thankfully, £188,000 coming from the Government central fund. The ESB have made a major contribution to that upgrading as a public body. Telecom Éireann and local businesses have made a contribution with their works in the village. What has been An Post's Contribution — the withdrawal of the post office from Tallaght which I believe shows their uncaring attitude. Every other body, business people and individuals were prepared to make sacrifices and to contribute towards making Tallaght village a pleasant area for the local people and for tourists. Almost £0.75 million was spent by the local authority with Government assistance and it is well over £1 million when one considers the money spent by ESB, Telecom Éireann and local businesses. Yet, An Post were not prepared to keep their post office in that village. That displays a great lack of caring on their part.

The local post office can never be replaced once withdrawn. It has contributed enormously to Irish life. It has also contributed to tourism because we have made much of how we live in rural Ireland when advertising abroad. If these post offices are closed then I can never see Irish life returning to what it is today. Considerable inconvenience will be caused to social welfare recipients and many others who will now be required to travel longer distances to the post office. Not enough has been made of that. This choice has been made at a desk in Dublin by a body which I have fairly indicated is uncaring. I want to thank Senator Cosgrave for sharing his time. There is a lot more I could say but I want to show my appreciation to the Senator who gave me this time.

It has been said that this is a very important motion and this has been acknowledged even by Members on the far side. If they are serious about that, they will stop the posturing and codology which has been going on in the last couple of weeks and they will vote for the Fine Gael motion. It appears that this House has been told one story but there has been another story going out in other directions. Last week the Minister, Deputy Brennan, rode the NESC horse, which is apparently to carry us over until after the local elections in June. However, last night or the night before in Boyle, we had the Minister of State, Deputy Leyden, saying: "It is history, lads, it is all over. This thing has been vetoed." One must now ask, who is telling the truth? Who is to be believed? The whole thing has be be evaluated and looked at.

We are all aware of the difficulties in which An Post finds themselves. I do not think enough questions have been asked about how these problems have arisen. How was it that a debt of £1.6 million one year to £3.6 million in another year was suddenly allowed develop? There are the questions about management, which appeares to be top heavy, and an overtime bill of £20 million. Some of these problems have been addressed at an earlier stage and I think there are lessons in this for all of us. There are lessons in this for all our semi-State bodies and the Civil Service in relation to how they carry on their business. Many questions remain unanswered. This is a further assault on rural Ireland, a further attempt to downgrade it, particularly what has happened to Garda stations and the closure of hospitals. If this move goes ahead the Members opposite will know how their constituents feel come June, because the public will not be bought off with this sop of a NESC report.

With the utmost respect to the Minister of State present, I do not think it has been a good service to the Members of this House that the senior Minister responsible for this only appeared here last week to read out a three and a half page script and then disappear. I hope that is not the seriousness with which he regards this very serious problem, involving sub-post offices, the social aspect and the human face of rural Ireland. Last week the Minister in his speech ignored all this and did not even mention the 1,500 people who would lose their jobs. It appears that postmen will be the main sufferers. How will they be singled out?

There are many questions which have not been addressed in this debate. This will haunt the Members opposite over the coming weeks and months. Do not think that on the doorsteps the public will believe either a NESC report or the lovely soft option of the Minister of State, Deputy Leyden it is history; it will not happen.

Questions have to be asked about the security and safety of road side letter boxes. How will they be looked after? Will they be insured? How will the old and inform get to them? Who will be responsible if they are vandalised or broken into? There has to be a clear statement, a clear commitment, from this Government to a certain investment policy in An Post. They cannot be expected to borrow more money. In the early eighties, the plan was that there would be injection of money. There has been no injection of money and that has to be remembered. There is a certain social obligation under section 110 just as there are with CIE in parts of the country where there are not always economical routes. One has to remember that parts of An Post's service are also uneconomic.

One must look at how problems have arisen in relation to the competitive nature of An Post with regard to other things that they could be doing. Postage is to cost more. Are we going to get a better service? If couriers can run their business and make profits, surely An Post can learn something from them. Should An Post be diversifying into other services, such as banking and how television licence fees are collected. It does not make sense that An Post plan to contract out the collection of television licences. They should be able to fight their corner with RTÉ. There are still many people, as we see in the courts from week to week, who do not pay their television licence fees. If they are thinking of contracting out some service it might be better for them to see if they can collect some of these outstanding licences. These questions have to be looked at when we consider the future of An Post.

There has to be a re-examination of the top heavy management structure which apparently exists in An Post. I gave an example last week of where in one sorting office there were 19 people sorting and 11 overseeing them. Does that make sense? There is also the scandal — and it cannot be described as anything less — of a £20 million overtime bill. That has to be sorted out, and if the workers and the unions want action, and want rights in this, they must have responsibilities as well. There has to be a full, frank discussion on how they will go forward in future and how they plan. I do not think the Minister referred last week to the possible availability of moneys in Europe to help to provide a postal system in member countries. I wonder if this has been explored. Has this been looked at? It does not make sense that mail is posted in Donegal, comes all the way to Dublin only to go back to Sligo.

I say to the Members opposite that they can feel free to vote for the Fine Gael motion because if they do not, there will be more of the posturing that has been going on at meetings around the country where Fianna Fáil public representatives say they got the nod from Minister Brennan. It is either kick to touch until after June or, better still, if Minister Leyden is to be believed, it is kick to touch for all time. I ask Senators to vote for this Fine Gael motion which calls for a review of the Act and a review of An Post. I hope that with proper planning and discussion we will have a system which will benefit everybody but, in particular, the many people in rural Ireland who will be totally devastated if this programme is allowed to proceed.

Amendment put.
The Seanad divided: Tá, 31; Níl, 20.

  • Bohan, Eddie.
  • Byrne, Hugh.
  • Byrne, Seán.
  • Cassidy, Donie.
  • Conroy, Richard.
  • Cullen, Martin.
  • Dardis, John.
  • Fallon, Seán.
  • Farrell, Willie.
  • Finneran, Michael.
  • Fitzgerald, Tom.
  • Hanafin, Des.
  • Haughey, Seán F.
  • Honan, Tras.
  • Hussey, Thomas.
  • Keogh, Helen.
  • Kiely, Dan.
  • Kiely, Rory.
  • Lanigan, Michael.
  • Lydon, Don.
  • McCarthy, Seán.
  • McGowan, Paddy.
  • McKenna, Tony.
  • Mooney, Paschal.
  • Mullooly, Brian.
  • Ó Cuív, Éamon.
  • O'Donovan, Denis A.
  • O'Keeffe, Batt.
  • Ormonde, Donal.
  • Ryan, Eoin David.
  • Wright, G.V.

Níl

  • Cosgrave, Liam.
  • Doyle, Avril.
  • Harte, John.
  • Hourigan, Richard V.
  • Howard, Michael.
  • Jackman, Mary.
  • Kennedy, Patrick.
  • McDonald, Charlie.
  • McMahon, Larry.
  • Naughten, Liam.
  • Neville, Daniel.
  • Norris, David.
  • Ó Foighil, Pól.
  • O'Reilly, Joe.
  • O'Toole, Joe.
  • Raftery, Tom.
  • Ross, Shane P.N.
  • Ryan, Brendan.
  • Ryan, John.
  • Staunton, Myles.
Tellers: Tá, Senators Wright and Fitzgerald; Níl, Senators Cosgrave and Neville.
Amendment declared carried.
Question put: "That the motion, as amended, be agreed to."
The Seanad divided: Tá, 31; Níl, 20.

  • Bohan, Eddie.
  • Byrne, Hugh.
  • Byrne, Seán.
  • Dardis, John.
  • Fallon, Seán.
  • Farrell, Willie.
  • Finneran, Michael.
  • Fitzgerald, Tom.
  • Hanafin, Des.
  • Haughey, Seán F.
  • Honan, Tras.
  • Hussey, Thomas.
  • Keogh, Helen.
  • Kiely, Dan.
  • Kiely, Rory.
  • Cassidy, Donie.
  • Conroy, Richard.
  • Cullen, Martin.
  • Lanigan, Michael.
  • Lydon, Don.
  • McCarthy, Seán.
  • McGowan, Paddy.
  • McKenna, Tony.
  • Mooney, Paschal.
  • Mullooly, Brian.
  • Ó Cuív, Éamon.
  • O'Donovan, Denis A.
  • O'Keeffe, Batt.
  • Ormonde, Donal.
  • Ryan, Eoin David.
  • Wright, G.V.

Níl

  • Cosgrave, Liam.
  • Doyle, Avril.
  • Harte, John.
  • Hourigan, Richard V.
  • Howard, Michael.
  • Jackman, Mary.
  • Kennedy, Patrick.
  • McDonald, Charlie.
  • McMahon, Larry.
  • Naughten, Liam.
  • Neville, Daniel.
  • Norris, David.
  • Ó Foighil, Pól.
  • O'Reilly, Joe.
  • O'Toole, Joe.
  • Raftery, Tom.
  • Ross, Shane P.N.
  • Ryan, Brendan.
  • Ryan, John.
  • Staunton, Myles.
Tellers: Tá, Senators Wright and Fitzgerald; Níl, Senators Cosgrave and Neville.
Question declared carried.
Barr
Roinn