APRIL 15, 2014
Threat of Mass Closures in Post Office Network
by Peadar Breathnach
A recent report by Grant Thornton
Chartered Accountants says that up to 557 post offices could close by 2017 if
the government persists with cost cutting measures as part of the programme for
government. An Post latest figures which was for
2012 calendar year indicate that the organisation’s losses were at a staggering
€37,243,000. The state owned company’s turnover was €807,295,000 however
operating costs were at €824,779,000 while other expenses were at €19,750,000
making it An Post’s worst year on record.
In a bid to tackle the losses, the
government seem to be taking aim at local post offices as new policies being
introduced could spell disaster for the An Post network. Mass closures seem a
distinct possibility. The Grant Thornton Report, which looked in to the
possible consequences of these new policies has postmasters and postmistresses
up and down the country fearing for their jobs.
An Post won the latest tender in June
2013 to be the majority distributor of social welfare from the Department of
Social Protection. This contract covers the next two years with the option for
an additional four on the current deal. At the
moment An Post deliver an estimated €9 billion in social welfare payments
annually which is worth €60 million a year to the post office organisation.
The government appear to favour
‘electronic funds transfer’ (EFT) which would mean social welfare would be paid
directly in to people’s bank accounts instead of the traditional ‘over
the counter’(OTC) method. As it stands An Post are paying out 48% of the total
social welfare payments. However, under the current programme for government,
the Fine Gael/Labour government want to reduce this to 22%. If the government
carry out this plan, it would inevitably lead to the closure of several post
offices around the country.
The Grant Thornton report estimates that
if the government are successful in this plan to leave only 22% of payments to
An Post that 444 post offices would close which amounts to 39% of the total post office network.
However if An Post lose the Social Welfare contract altogether, 557 post offices would close which is 48%
of all post offices.
Seán Martin, treasurer of the Irish Postmasters Union (IPU) feels that
if the government was to push ahead with using the EFT payment method, they
must allow An Post to be the ones to administer it, or else the Department of
Social Protection would be reneging on the tender won by An Post in June 2013.
However as of yet the government have made no move yet to give An Post the
facilities to administer EFT payments and the IPU remain very concerned.
He said, “We may have won the contract
in theory but the business is being diverted away on a daily basis. We cannot
survive if this continues.”
Martin also was quick to point out
the advantages of allowing An Post to administer EFT payments. “If An Post is
allowed to administer the payments, it will act as a deterrent to potential
fraud as the account holder would have to become known to their local post
office in order to receive payment, whereas they would be able to receive
payment in any bank. The An Post workers would be in a better position to act
as a deterrent to fraud as opposed to bank staff.”
He also alluded to another advantage,
“when someone doesn’t collect social welfare from their post office, the money
is returned to the social welfare office. However with the banks, this is not
the case.”
However it is not just the
government’s policies regarding social welfare that has the IPU worried. Pilot schemes are being launched which would see supermarkets be
able to carry out many of the duties which post offices currently undertake,
such as paying bills. As it stands the government have
piloted the scheme in four Tesco outlets. However there are plans in place to
introduce the scheme in a further ten Supervalu outlets.
Martin suggests that postmasters
should be working in conjunction with supermarkets and it should be the
postmasters running the outlets through the supermarkets, thus ensuring that
jobs remain safe while also maintaining staff fully trained to undertake post
office duties.
Martin continued, “The government
need to monitor and cap the amounts of supermarkets used in the scheme in order
to safeguard jobs.”
The IPU was also keen to point out
the social impact if post offices closed. They say it will cause social
isolation within elderly people as they would be electronically receiving
payments instead of visiting their local post office.
The IPU already have held a protest outside
the Dáil, where there were representations from nearly all of the
1,150 post offices in the country. The IPU has not ruled out further protests.
They are calling on Minister for Communications, Energy and Natural Resources
Pat Rabitte "Labour Party" whose department is responsible for the running of An Post, to
clarify the future plans with Tesco and SuperValu and to maintain negotiations
with the IPU. They are also calling on Minister for Social Protection Joan
Burton "Labour Party" to ensure that her department honour the latest social welfare with An
Post.
Both ministers offices have refused
to comment on the potential closures but undoubtedly plans are in place which
if carried out will result in post office closures.
Máire Breathnach who is the
postmistress of the An Rinn post office in Co. Waterford is also anxious about
her job in the future. “The post office in An Rinn dates back in my family over
a hundred years. My husband’s grandparents ran it before passing it on to his
parents. He then took over the running of the post office in 1974. Following my
husband’s sudden passing in 1999 I have ran the post office since. If the
government continue with their cost saving plan and we are forced to close,
over a century of tradition will come to an end in An Rinn.”
Martin concluded, “Post Offices employ over 3,000 people, people’s livelihoods are at
stake. They have to keep the post office network alive.”
"There is a petition available to sign on the counter of Mountmellick Post Office. Seeking to keep it and other Rural Post Offices open."
"There is a petition available to sign on the counter of Mountmellick Post Office. Seeking to keep it and other Rural Post Offices open."
Sinn Féin Mountmellick – Serving The Community