Post offices battle back from threat of closure
Postmasters are heating up their campaign ahead of next year’s election to save the post office network by pressurising the Government to make them the preferred financial institution for welfare payments.
A meeting in Galway on Tuesday of postmasters from around the county was organised by the Irish Postmasters’ Union. Its vice president Padraig McNamara predicted that at least half of Galway’s 51 post offices would be wiped out if they lost the business from the Department of Social Protection.
Six weeks ago the Department wrote to clients, urging them to get their payments paid directly into their bank accounts.
The move infuriated postmasters, who currently handle 48% of welfare payments, for which they receive €57m from the Government.
However they insist that face-to-face payments actually saves the public coffers €70m by reducing welfare fraud. It also ensures the viability of the post office network which is a vital cog in the survival of rural villages and towns.
“The Government are saying they want to support the post office network but they’re pulling the rug from beneath our feet by directing welfare recipients to banks – these are the most vulnerable people in society they’re taking advantage of because it will cost them €70 a year to have their payments put into banks while we charge them nothing,” explained the postmaster from Granard, Co Longford.
“If they made us the provider of choice we would survive. We commissioned a report which found that if the welfare payments go down to three per cent, half the network will be wiped out – at least half of those in Galway – and the rural ones and larger ones in the towns where there are alternatives will be most vulnerable.”
Three generations of the Dooley family ran the post office in Cappataggle, but An Post declined to renew the contract beyond the end of the year.
Barnadearg near Tuam received a stay of execution until July. In both cases concerted community campaigns were waged to save services.
A major review of additional services that could be carried out through the post office network is currently in train under the leadership of Dragons’ Den coffee shop entrepreneur Bobby Kerr. However that plan is not expected to be unveiled until next year.
“We don’t want to make this an election issue, we want the future of post offices sorted before that,” remarked Padraig.
“What we’re saying is we need to be the contractor of choice for the Department of Social Protection – at the very least. If we could handle motor tax, we’d save the Government €60m over five years – we could handle hospital charges, local authority charges, even driving licences, these kind of services will ensure the survival of post offices.
“We are the largest network out there. We hand feed the butchers, the hairdressers, any shops in the area, we keep them alive, we keep towns alive. If you look at what’s happening in Great Britain, they are pumping money hand over fist into rejuvenating rural areas, there’s no point letting them go and then try to resurrect them when it costs far too much.”
The chief executive of An Post Donal Connell has warned that the operation of the network is facing "serious challenges" due to key customers moving business online and businesses seeking reductions in the cost of transactions.