Carol Nolan
Ceist:2. Deputy Carol Nolan asked the Minister for Communications, Energy and Natural Resources the action he will take to preserve the services delivered by rural post offices. [16173/16]
Amharc ar fhreagraThursday, 16 June 2016
Ceisteanna (2)
Freagraí ó Béal (6 píosaí cainte)
I am asking the question on behalf of Deputy Brian Stanley. The survival of rural Ireland will require a committed strategy from the Government, which has been sorely lacking in recent Administrations. This includes the preservation of our network of rural post offices. This has been a major issue in my constituency of Offaly and north Tipperary, as it has been throughout the country. People want a commitment by the Government to protect the rural post office. The previous Government oversaw the closure of dozens of post offices around Ireland and encouraged business away from the post offices by shifting social welfare payments from the post offices to the banks. What actions will the Minister take to preserve the services delivered by post offices, particularly those in rural areas?
I thank Deputy Carol Nolan and wish her a long career in the House. I send my good wishes to Deputy Brian Stanley.
It is Government policy that An Post remains a strong, viable company in a position to provide a high quality postal service and maintain a national network of customer focused post offices in the community. The post office network plays an important role in serving the needs of business and domestic customers alike. However, the postal sector is undergoing systemic change, with migration towards electronic communications resulting in core mail volume decline year on year.
In recognition of the changing commercial environment, my predecessor established the Post Office Network Business Development Group last year, the remit of which was to examine the potential from existing and new Government and commercial business that could be transacted through the post office network. Mr. Bobby Kerr was appointed as the independent chairman of the group and he brought a depth of knowledge and experience in identifying and developing business opportunities for the post office network.
The final report of the group, which was published in January of this year, details 23 recommendations with network renewal, a basic payment account and motor tax being the three key actions. The final report recommended that An Post should, following appropriate consultation with postmasters and others, review and amend the five-year strategy for the post office network.
A number of working groups have been established, including a network renewal implementation group, which is being independently chaired by Mr. Bobby Kerr. This group is examining the number and spatial distribution of branches, branch modernisation, the streamlining of products and services, postmaster payments and contracts and training and qualifications for post office employees. An Post and the Irish Postmasters Union, IPU, are members of the group, which is of fundamental importance to the long-term future of the network. Good progress has been made in a collective environment and that work remains ongoing in the group.
The programme for Government commits to acting on all of the recommendations of the final report, including supporting the implementation of a basic payment account and enabling the payment of motor tax through the post office network. My officials have been actively engaging with other Departments and agencies on these issues over the past six months. Responsibility for implementation of the recommendations in the final report will shortly transfer to the Minister for Regional Development, Rural Affairs, Arts and the Gaeltacht, Deputy Heather Humphreys. A number of staff with expertise will transfer with it.
I thank the Minister for his response. I question why people received letters from the Department of Social Protection which strongly encouraged them to transfer their payments from the post office to the bank. As the Minister knows, we have a responsibility for rural Ireland. I welcome the fact the Minister is considering the payment of motor tax through the post offices. I urge him to write to the Department of Social Protection and urge it not to encourage people to move their payments from the post office to the bank. We need security and supports for post offices in our rural communities.
In recent days, I have received correspondence from the Irish Postmasters' Union, including a copy of a letter that was circulated regarding people in receipt of jobseeker's allowance. The letter offered a number of options for receiving payments and it did not include the post office. This is of concern to me. I will not be hypocritical. People know when I was on the other side of the House I was very critical of the manner in which social welfare issued some of these letters in the past. I have directed my officials to make contact with the Department of Social Protection on this.
We are moving away from this. With the introduction of the basic payment account, An Post and the post offices will be on an equal footing with every single banking institution. Significant progress has been made on the basic payment account. There is ample evidence that the inclusion of it will not only benefit An Post and postmasters in bringing new business in, but will enable us to provide electronic accounts to hundreds of thousands of people who do not have access to electronic banking and transactions, particularly people in rural areas. It will provide them with a range of services. Many of the banks have abandoned rural Ireland. As the Acting Chairman, Deputy Eugene Murphy, would know, some banks give out cash only on certain days. It is important that we support the post office network. The basic payment account will be a significant step forward in that.
I welcome the fact the Minister has been so committed to the future of the post offices. I take it there will be no more letters from the Department of Social Protection urging people to transfer their payments.
The Department of Social Protection has been of great assistance to my Department, as have NewERA, the Department of Public Expenditure and Reform and the Department of Finance. We have been in a working group on the basic payment account. It has far more potential than just helping An Post to retain business. Sadly, post offices have become more dependent on social welfare customers. The basic electronic account will allow people to do their transactions in the local post office rather than having to go into a town to access the bank. Post offices want to engage with people on a face-to-face basis rather than encouraging them away from teller and cash services. It opens up great opportunities not just for the traditional business that has been going through post offices, but hopefully to attract new business.