Dáil Éireann Debate, Tuesday - 10 October 2017
525. Deputy Niamh Smyth asked the Minister for Communications, Climate Action and Environment his views on reports in the media (details supplied) which report 400 post office closures throughout the country; his plans regarding same; if an assurance can be given to postmasters on this issue; and if he will make a statement on the matter. [42234/17]
Amharc ar fhreagra528. Deputy Carol Nolan asked the Minister for Communications, Climate Action and Environment the outstanding recommendations of the post office network business development group; the estimated cost of implementing all recommendations; and if he will make a statement on the matter. [42337/17]
Amharc ar fhreagraI propose to take Questions Nos. 525 and 528 together.
I refer to the reply to Question No 22 of 4 October and to the topical issues debate on post offices in the House on the same date.
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 An Post Group lost €13.7 million in 2016 with the core mails business losing over €30 million. An Post has entered a period of structural change and decline in activity mainly due to the impact of e-substitution on mail volumes and post office transactions. This has had a significant impact on the post office network and I understand that overall activity levels are down approximately 15% since 2013. In addition, annual payments have reduced by up to 20% in some offices. There is no doubt that 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.
As Minister for Communications, Climate Action and Environment, I am responsible for the postal sector including the governance of An Post. Operational matters relating to the company’s retail business, including the post office network, are matters for the Board and management of An Post. I appreciate that there is concern regarding the potential closure of post offices and the potential number involved. This has been exacerbated by the media coverage on this issue over the past week. I would again reiterate that no definitive decision has been made by An Post regarding post office closures. 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. Government remains fully committed to a sustainable post office network which it sees as a key piece of economic and social infrastructure for both rural and urban areas.
The fundamental review of the company is being undertaken to identify the strategic changes and restructuring necessary to put the company on a sound financial footing. An Post has recognised the realities of the current postal environment and is transforming how it does business to be a better fit for the future of e-commerce, where the average spend per consumer in Ireland is forecast to nearly double in the next five years. It is imperative that the network be restructured into a viable sustainable, modern and vibrant network for the future, capable of adapting to the changing environment in which it operates. Inevitably, the scale of the envisaged change will impact on individual postmasters and some postmasters, who have given long and dedicated service to their local communities and to An Post, may find it a challenge to adapt to a very significant renewal programme. Any changes in this area will have to be the subject of negotiation between An Post and the postmasters. I continue to encourage An Post to continue to work closely with all parties to find an agreed solution to the renewal of the network.
I have met the Irish Postmasters’ Union and was interested to hear their perspective on how to renew what continues to be a very valuable resource for both urban and rural communities.
Until such time as the review is finalised and assessed it is not be possible to comment further. Government will be briefed once a definitive strategy has been agreed.
