Outsourcing to post offices could save taxpayers €53m

Savings of €53m could be made for taxpayers by handing over additional services such as motor tax and household charge levies, among others, to post offices.

Postmasters made the proposal yesterday and called on TDs to apply pressure on the Government to agree to a new roadmap for post office services.

In total, some €85m could be saved for the Government, banks, and other agencies if a number of payment services are switched over to post offices.

Some €53m of this would go directly back to taxpayers, said the Irish Postmasters’ Union.

Savings would occur from post offices taking control of motor tax payments (€60.6m), further banking transactions (€7.7m), and household charges (€8.1m), as well as hospital charges (€8.5m).

IPU general secretary Brian McGann said savings would be made by reducing staff numbers elsewhere, and utilising the existing 1,100 post offices across the country.

“However, government sanction is needed for additional services to be provided and no response, or action, has yet been forthcoming,” he said.

The savings were calculated for the union by accountants Grant Thornton, which also outlined a number of non-quantifiable benefits of post offices after discussion with groups such as St Vincent de Paul.

For some small villages, a post office was the only outlet for financial services, for others it was a “lifeline” for staying in touch with the community.

Dozens of TDs and senators attended the IPU launch yesterday and there was cross-party support for the proposals to add more services in post offices.

Mr McGann told them: “If we don’t have action, the post office network will disappear.”

Post offices currently offer financial services from AIB and National Irish Bank. Oireachtas members said yesterday that, given the current controversy surrounding Ulster Bank services, it would be beneficial for communities if transactions for more banks could be offered in post offices.

Kerry TD Michael Healy-Rae, a postmaster himself, said it was “ridiculous” that homeowners had been unable to pay the €100 household charge in post offices.

Mayo TD Dara Calleary asked if An Post were interested in the business plans for workers or just wanted to wind down post offices to conserve finances.

A communications department spokesman said yesterday he was “continuing to engage” with the IPU on the matters.