Postmasters are now facing a financial cliff face after the Government ruled out a public service obligation subsidy to help sustain the network. Communications Minister Eamon Ryan has said there are “no proposals” to introduce a government-funded subsidy for the post office network.Irish Postmasters Union general secretary Ned OHara said a government financial intervention must be in place by June to keep post offices open and to retain local banking in communities.
Post offices were already struggling before Covid. However, they have been severely impacted by the pandemic and are now due to be hit with a reduction in postmaster payments from the start of July.
The question is who will provide financial services to communities, such as those where Bank of Ireland branches are to close, if post offices do not get government support in time? Mr O’Hara asked.
A report commissioned from business advisers Grant Thornton, and published last September, warned of unrestrained post office closures after June 2021. Its analysis recommended an annual public service obligation of 17m, which it said would represent value for money for the State.
However, responding to a parliamentary question from Fianna Fáil’s Cathal Crowe, Mr Ryan said it is a “longstanding government policy” that postal services will not be directly subsidised by the Government.
However, he said the 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.
“A lot of work has been done over the past few years to develop the post office network and this has had a positive effect for both postmasters and customers. This momentum needs to be maintained and if An Post, the postmasters and government work together we can ensure that the network can emerge as a central hub for a wide variety of valuable community-focused services,” he said.
An Post has agreed a new partnership with Bank of Ireland to offer personal and SME withdrawal and lodgement services to Bank of Ireland customers after its decision to close over 100 branches.
Mr Ryan said the Government believes An Post has “untapped potential” to do more and make a further significant contribution in many areas of public, business and community life.
Minister of State for Postal Services Hildegarde Naughton, last week announced the establishment of an inter-departmental group to examine directing more government business to the post office network and to report back at the end of July.
However, Mr O’Hara said this is “too late”.
There is a cliff face in front of the post office network that is coming this July. Decisions need to have been made and actions taken before then.
While the Irish Postmasters Union welcomes additional banking services which post offices will provide, such as following the Bank of Ireland branch closures announcement, this can only happen if there is a network there to provide it.
Postmasters are due to come before the Oireachtas Committee on Transport and Communications Networks tomorrow to highlight the difficulties facing the network.
The Irish Postmasters Union will recommend that an annual government retainer payment be put in place from this summer with a commitment among all parties government, An Post and postmasters to expand the range of services provided as much as possible and urgently,” said Mr O’Hara.