Post office network at risk of 'collapse' without immediate financial support

Postmasters, who run the majority of post offices across the country, face a “significant reduction” in payments from July 1 — an average fall of 20%. Picture: Sam Boal / RollingNews.ie

The Irish Postmasters’ Union (IPU) has warned of “‘unrestrained” post office closures from July if the government does not act quickly to provide financial support or an ‘annual retainer’ to almost 900 postmasters.

IPU General Secretary Ned O’Hara warned that the post office network was at risk of “collapse” unless the government stepped in to provide financial support in the coming weeks.

The warning comes as postmasters, who run the majority of post offices across the country, face a “significant reduction” in payments from July 1 — an average fall of 20%.

Across the national network, postmasters run 875 post offices and An Post operates 45.

Mr O’Hara said the cut in payments from July represented a “major challenge” and were compounded by a delay in rolling out additional government services, which were promised in 2018 but are now only being given serious consideration.

The “uncertainty” facing the network, he said, also jeopardised plans to maintain Bank of Ireland branch services through post offices.

Given the concerns, the union is arranging a series of local “crisis” meetings in June to discuss all options, including the possibility of a work stoppage.

The IPU said commitments made in a 2018 national plan for the post office network — to provide services within 3km in urban areas and 15km in rural areas — could only be delivered with government support.

The warning follows recommendations last year for a €17m annual Public Service Obligation (PSO) to support postmasters.

The recommendation was made by business consultancy firm Grant Thornton last September in a report commissioned by the IPU.

“The IPU has since last September been recommending to government that an annual government retainer payment be put in place,” Mr O’Hara said.

"With just four full weeks until this ‘tipping point’, postmasters remain in the dark about their future."

He added that with July fast approaching an “interim” solution should be put in place in the absence of a more long-term “comprehensive” option: 

“If there isn’t enough time to have a comprehensive solution in place by July, then the IPU is calling for government and An Post to put in place an interim action that will be effective and is deliverable from July.

“The IPU is receiving calls daily from postmasters in all areas who are considering their immediate future. 

"We are organising emergency meetings, to take place by mid-June, and all possible actions will be discussed including to ballot on a work stoppage,” Mr O’Hara said.

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IPU president Seán Martin said postmasters could provide essential government services to local communities, such as motor tax or licence renewals, and that providing “offline” services was even more important in light of the recent cyberattack on the HSE.

“Postmasters are ready, willing and able to provide many additional services including motor tax, licences, renewals, registrations, identity verification, community information, IT / Office hub — or advising and helping people and to evolve for the future,” Mr Martin said.