Dáil Éireann Debate, Tuesday - 21 July 2020
85. Deputy Seán Canney asked the Minister for Communications, Climate Action and Environment if he is committed to an annual public service obligation for the post office network; if he will include same in Budget 2021; and if he will make a statement on the matter. [16675/20]
Amharc ar fhreagraThe Programme for Government recognises that a modernised post office network will provide a better range of financial services and e-commerce services for citizens and enterprise, as part of our commitment to a sustainable nationwide post office network.
Government remains fully committed to a sustainable post office network as a key component of the economic and social infrastructure in both rural and urban areas. An Post's social value has been particularly evident during the current Covid crisis.
In response to the structural challenges facing the postal sector generally and An Post, the company put in place a Strategic Plan for the medium-long term future of the company. The Plan covers the period 2017 – 2021. In order to implement the Plan, the cost of which was estimated to be in the region of €150m, the Minister for Finance provided a loan of €30m to the company in December 2017 to support the renewal of the post office network (€15m) and the continued fulfilment of a 5 day per week mails delivery service (€15m). An Post is continuing to undergo vital transformation as part of the delivery of this plan.
The issue of introducing a Public Service Obligation (PSO) has been raised previously but it is longstanding Government policy that postal services will not be directly subsidised by Government. Successive Governments have also held this view.
