My predecessor received correspondence from the Irish Postmasters' Union seeking a meeting to discuss the future of the post office network. This meeting took place on 23 September 2004.
With regard to the automation of the post office network, An Post bears a statutory obligation to be financially self-sufficient and to conduct its affairs in such a manner as to minimise costs to its customers. The company's programme of automation for certain post offices was completed in 1997. It is, therefore, only in very exceptional circumstances, such as an existing automated office closing and its equipment being transferred to a suitable neighbouring location which transacts significant volumes of welfare business, that offices are automated today.
The automated network accounts for over 95% of An Post's counter business. This level of automated coverage is considered by An Post to be extremely comprehensive by any objective standard. It is the company's view that there has never been a justifiable customer-service or economic argument which would support the extension of automation to all offices, regardless of their location or business volumes.
Given the minimal business volumes and small customer base of the remaining non-automated post offices and the prohibitively high costs, both capital and on-going, of automating them, An Post advises me that it has no plans to increase the number of automated offices. That decision is entirely a commercial operational matter for the company.
The Government is committed to a viable and widespread rural post office network. However, consideration must be given to the current climate in which An Post is operating, bearing in mind the serious operational losses the company has suffered and the measures, which need to be implemented if the company is to reverse its current situation.
I underline that the Government has already approved an equity injection of €12.7 million for An Post to facilitate the modernisation of the post office network. The equity injection was paid to the company in 2003 and with this in mind, the Government is not considering providing a subsidy or subvention towards the post office network.
