An Post admits that further post office closures will be 'inevitable'

An Post said it is "inevitable" non-viable standalone post offices will close, but said the future of the post office network is brighter than it has been for some time. Picture Dan Linehan

An Post has admitted further post office closures are “inevitable”, but has not indicated how many outlets may cease operating. 

But, it has reiterated that it sees the post office network as having a bright future.

Postmasters are fearful of up to 200 individual post offices closing this year.

The State-owned postal operator has also said it plans to self-finance its proposed pandemic fund and does not want government money to cover the costs.

The tailored fund would reimburse individual post offices for losses suffered due to their services being interrupted by Covid. An Post is in talks with the Government over the project, but – if approved - could launch it next month and run it for 18 months.

A Grant Thornton report last year recommended urgent government investment for the post office network, with an annual Public Service Obligation of €17m needed.

Addressing the Oireachtas communications committee, An Post CEO David McRedmond said the company is working on becoming sustainable without recourse for government funding.

Mr McRedmond said An Post will invest €80m in its post office network, alone, over the next five years, as part of a broader investment drive covering all aspects of its business.

While he said it is “inevitable” that some non-viable standalone post offices will close, he did not offer a target number.

Mr McRedmond said An Post must stick to the agreement reached three years ago with the Irish Postmasters Union that there would be a post office within 15km of every rural community of more than 500 people and one within every 3km in urban areas. He said sticking to this criteria will ensure the post office network remains viable for the long-term.

An Post - which plans to start offering mortgages next year - has around 930 post offices nationwide. More than 190 have closed since the middle of 2018 and four closed permanently over the worst of the Covid crisis. The company said it is committed to the network’s development, largely through a co-location model of post offices being located in supermarkets or convenience shops.

An Post’s head of retail Debbie Byrne told the committee co-location offices are performing on average 11% better than standalone post offices.