Matt Shanahan: Urgent Call to Save Rural Post Offices
Matt Shanahan urged the Government to act to preserve and resource the regional and rural post office network, warning current measures fall short. He criticised the failure to deliver on promises to direct department business and transaction fees to post offices and proposed concrete measures to sustain the network.
Demand for government support
He argued the retention and resourcing of the regional and rural post office network is more than a commercial issue and said the State has been telling the cost of everything but not the value. He noted that despite moves online over 20% of customers still want face-to-face services from Unpost, criticised the Government for not following through on promises, and highlighted an 18-month Unpost support agreement of €8.5 million versus €17 million identified in the Grant Thornton report.
Specific proposals to bolster post offices
He proposed mandating that PUP payments being discontinued and recipients returning to JobSeekers be processed through the post office network, estimating this could deliver €3-4 million annually and help control fraud by ensuring recipients collect in person. He also suggested retainer fees of €5,000-€10,000 for smaller rural post offices and a requirement that individual departments direct services to those offices.
Risks to rural services and regeneration
He warned that without banking and post office networks on streets, rural regeneration cannot be sustained and gave examples of services migrating online, including passport express. He criticised delays such as the motor tax subcommittee report being postponed to September and said the Bank of Ireland Association's projected revenues - "at most this year 500 million in revenue, possibly a million in revenue the following year" - would not shore up needed finances.
Call for accountability and funding
He accused the Government of a continuing hands-off approach that he said amounted to "two fingers" to regional and rural people, called time on glib platitudes and demanded Government-directed funding to retain and regenerate the national community-based post office network.
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Good morning, Chair. Minister, the last time I spoke on this issue, our private member's motion, I believe I pointed out that too often the State, to its policy makers, can tell you the cost of everything, but the value of nothing. The retention and resourcing of the regional and rural post office network is more than just a commercial consideration to government policy. It is a demonstration of actions being louder than words in terms of supporting regional and rural Ireland. Other deputies have outlined the challenges facing the network, the value of the network, but despite the move to online transactions, still over 20% of customers wish to use the face-to-face services of Unpost. Despite the many promises from government to support the network by referring department business and transaction fee income, this has not happened, and the government has not been to the fore in pushing this agenda. The recent agreement reached between Unpost to provide 18 months of support to the tune of 8.5 million network is somewhat welcome, but it is a long way from the 17 million that was identified in the Grant Thornton report. It begs the question, what is it that government wants in terms of the post office network? Do they want a purely private commercial concern with no public service obligation whatsoever, no community service obligation? It is projected the 8.5 million will only serve to cushion a network loss on average of 10 to 15% on turnover of each post office unit. And postmasters are rightly up in arms, seeing government lauding them for their efforts, but not providing any resourcing. Another question in terms of the rural regeneration of Ireland is how is that to happen and be sustained if we are not to have any banking and no post office networks are evidenced on our streets? When will government correct this ambiguity, Minister? Government has not delivered on the promises to support offline government services through the post office network. An example being, if the passport express option returns to the post office, most of that business will have migrated online. Government convened a subcommittee on motor tax that was supposed to report the end of July. That now will not report again until September. The vaunted Bank of Ireland Association will deliver at most this year 500 million in revenue, possibly a million in revenue the following year. That will do nothing to shore up the finances that are required. I can suggest two initiatives that will facilitate both government and the post office network. One, where PUP payments are being discontinued and recipients are returning to JobSeekers payment, mandate that these are processed through the post office network. This could deliver between €3 and €4 million to the network annually, and will give government control of fraud measures ensuring recipients have to be in the country to collect. For rural post offices, these should be segmented. Those that have a smaller hinterland could be supported by a retainer fee of €5 to €10,000 per year, and then demand that government services look for value in that by directing services to those, and put that as a responsibility and onus on individual departments. This would ensure the problem lands where it ought to at departments within government. A post office network retained in towns and villages is a fundamental requirement to building back better. We are doing a lot of talk about it, but talking is all that we appear to be doing. The State is best positioned and probably the only actor which can provide initiatives and frameworks that both support and enhance the national post office network. A continuing hands-off approach by Government Minister to this situation is two fingers to the regional and rural people of Ireland who pay taxes and contribute to the wellbeing of this nation. The time for glib platitudes is long over. It is past time for Government to show intent to the retention and regeneration of our national community-based post office network. Further Government indolence will not rescue this situation Minister. Future Government-directed funding will. Thank you very much.
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