Post offices to be an election issue

Post offices to be an election issue
From SUNDAY BUSINESS POST, September 9th, 2001

By Niamh Connolly Dublin, Ireland, 9 September, 2001 The future of the rural post
office network is set to become a major issue around the country in
the general election next May. The Irish Postmasters’ Union (IPU) is considering running
independent candidates in four- or five-seater constituencies on
rural issues, including sub-post office closures and health
services. The union is resisting proposals to transform post offices
into commercial outlets, by merging them with grocery shops, petrol
stations or other retail businesses. In a related development, four independent deputies who support the
government are threatening to oppose plans for post office agencies
by Public Enterprise Minister Mary O’Rourke. The deputies plan to inform the Taoiseach that they will withdraw
support from the government if it pursues its plan to merge post
offices with other businesses. Independents Harry Blaney, Tom Gildea, Mildred Fox and Jackie
Healy-Rae have assured the postmasters’ union that they will support
its campaign against the proposed `agency’ model. “There will be no question of rural post offices being allowed to
close, as far as we’re concerned,” said Donegal TD Harry Blaney.
“Post offices are a rural asset and, if they are not paying their
way, they should be subsidised to be kept open. The rail system is
subsidised to the tune of GBP140 million, yet we don’t benefit from
this in Donegal.” An Post has predicted cumulative losses of GBP80
million by 2005, unless the post office counter system is radically
overhauled. A report by industrial consultant Phil Flynn recommended subsidising
the counter services, but O’Rourke said a state subsidy would be too
costly. The minister has backed an interdepartmental report
proposing a commercial approach to the post office network. Under
the plan, postmasters would be offered financial incentives to merge
with viable business enterprises. Meanwhile, IPU general secretary Anthony Clinton has criticised An
Post for its refusal to pay a 12 per cent pay increase agreed by
O’Rourke. The government is seeking EU sanction for the increase. “An Post has GBP200 million in assets but it’s not prepared to give
us the 12 per cent. That’s about GBP5 million this year and next
year — and An Post would be reimbursed by the government,” Clinton
said. An Post is to press ahead with its GBP40 million plan for Postpoint
services at retail outlets. A spokesman said it was under contract
to companies such as Eircell and Esat to install the swipe card
machines which top up credit mobile phone cards, and had already
installed half the planned 4,000 Postpoint machines across the
country. Postpoint services are run in competition with post office counter
services. The government’s plan to transfer all bill-paying services from the
banks to the post office network has been stalled by the Competition
Authority, which believes it breaches competition law.
Copyright 2001 Sunday Business Post.
Source: World Reporter (Trade Mark) – FT McCarthy.SUNDAY BUSINESS POST, 09th September 2001