Post offices and community banking
Michael Harty and Michael Healy-Rae argued that commitments to support post offices and introduce community banking were not being delivered. The Taoiseach said postal services were changing, decisions were for An Post’s board, and the Government was pursuing new services and community banking.
My question refers to A Programme for a Partnership Government, in particular the section on post offices and community banking. The section was negotiated last May with many rural Deputies and there was a commitment to actively encourage the payment of social welfare payments through the post office and to allow other Government services to be supplied through post offices but none of that has happened.
The Taoiseach also committed to support the introduction of an e-payment system in post offices to facilitate financial services in post offices. In particular, he gave a commitment to exploring community banking such as exists in Germany and New Zealand. The post office is a very important part of the fabric of rural communities. Is it the Taoiseach's intention to allow the post office network to be decimated through inaction and a failure to deliver on the commitments in the programme for Government?
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This is a matter I have raised continuously in this House for the past six years. In the programme for Government a commitment was given to protect the viability of post offices. The Government is failing miserably to do that. We had a sham before St. Patrick's week when a Minister showed up for a Topical Issue debate only to tell Deputies that he had no responsibility. Who is directly responsible for the protection of the post office network? The Taoiseach should believe me when I say it will not be 80 or 200 post offices but that 700 post offices will close. I have been saying that for the past six years. Unfortunately, when one looks at today's newspaper it says that up to half-----
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-----of 1,200 post offices will face closure in the new plan. It is in the programme for Government. The Taoiseach knows the problems we have. There are solutions. As postmasters, we are not looking for a handout from the Government. It is no such thing. We are not coming to ask the Government to bail us out and give us money. What we are saying is that community banking should be introduced into post offices. It worked in Japan, Germany and New Zealand.
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Put the mechanisms in place to bring that about and the Government will save our network. If we lose it, it will be gone forever.
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This is a serious issue. The post office sector is undergoing very considerable change both at national and international level, with dramatic changes in electronic communications and online transactions having a heavy impact on the volumes of mail and other service offerings. An Post is a commercial State body and decisions relating to the size and distribution of the network are a matter for the board of management. The Government recently lifted the cap in respect of the price of stamps because of the urgency of this matter from a financial perspective. The Government is committed to supporting the sustainability of the post office network as set out in the programme for Government. As there was such a volume of material for the Cabinet this morning, the Minister of State, Deputy Ring, was not in a position to present his report; the Kerr report was commissioned by the Government in respect of the post office network.
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It has been leaked to the newspapers if the Taoiseach wants it.
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The programme for Government sets out what is involved here, such as actively encouraging social welfare payments at post offices. The Minister of State is very happy about that and continuing the contract in respect of post offices. Many people who receive their social welfare payments through post offices want them paid into bank accounts. The question of community banking is being pursued by the Department in collaboration with the Department of Finance but no post office will stay open unless it is used. The Government has tried repeatedly to offer a new range of services but these change with the-----
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It has not. There have been no new services in years.
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-----electronic transfers and online services. As Deputy Michael Healy-Rae knows himself, as a postmaster, there are always changes under way. The community banking facility is being pursued and we will be able to continue social welfare payments. The choice is for consumers as to where they want their money paid. Is it into the post office or a bank account? All these issues will come before the Government next week. Let us have a debate on it here afterwards.