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LAST UPDATE | 31 Aug 2018
INDEPENDENT TD MICHAEL Harty has said he is unlikely to support the government’s Budget this year due to the actions it is taking to close rural post offices.
Harty, who agreed to support the government from opposition, said he was instrumental in ensuring that a commitment to roll out more services in post offices, including advancing a new model of community banking, be included in the programme for government.
However, he said the government has reneged on these promises, with Finance Minister Paschal Donohoe stating last month that there is no compelling case for the State to establish a local banking system.
Speaking to TheJournal.ie, the Clare TD said his support for the government has been wavering in recent months.
“Over the past while my support for government has been dwindling,” he said, adding that he sat on the committee tasked with coming up with a plan for reforming the health service – which produced the Sláintecare report.
However he said there has been “no political will” to implement the Slaintecare report and the government’s response has not been adequate.
Similar to Sláintecare, Harty said there is also a lack of political will towards implementing a community banking system, despite the programme for government committing to advancing such a model.
‘Community banking system critical to saving postal network’
A community banking system “would challenge the pillar banks. It would have been a critical factor in maintaining the postal network,” added Harty, stating:
I can’t support what is happening at the moment.
When asked specifically about his support for October’s Budget, he said:
If this is the process it is going to be in relation to post offices, I won’t be supporting government.
Harty said the expansion of services such as ensuring social welfare payments are paid through post offices, as well as rolling out motor tax services, and using the post office as a “hub” between state services and the public would make a difference to the viability of the postal network.
However, he said it is the expansion of financial services that would save the skin of rural post offices – as it has done in places like New Zealand.
In fact, the report on establishing a sustainable postal network, carried out by businessman Bobby Kerr, states just that.
The report said it is “essential that An Post develops an increased capability in financial services as the main banks are withdrawing from rural Ireland”.
Conflict of interest
Harty said the government is aware of this, but claims there is a conflict of interest due to the State being a major shareholder in three major Irish banks – AIB, Bank of Ireland and Permanent TSB.
He argues the government does not want a competitor to enter the market if it challenges the business of the main pillar banks.
“In my view, there is no political will to competition to the pillar banks. A community banking system would challenge that,” he said, adding that such a new model could roll out loans to local small and medium businesses, with lower loan rates.
There is room for a competitor, it would be great,” he said, adding that it would help drive down rates, which are high in Ireland compared to some other EU countries.
Harty said the government are driving the message that no one will have to travel more than 15 kilometres to a post office; however he argues that this isn’t the issue.
Financial institutions leaving rural Ireland
“The post office is the last financial institution in these villages. The pillar banks have all left; once financial institutions leave, that is the end of the commercial viability of those villages,” he said, stating that where this has already happened, the villages are left as “shells of their former selves”, with shops and businesses disappearing, followed by population decreases.
“The community essentially unravels,” he said.
The Clare TD said the government are dedicating a lot of time to prevent the impacts of Brexit from causing damage, but said closing the post offices in rural Ireland is like encouraging an “internal Brexit”.
“The issue for rural communities is they are facing extinction. I would equate it to an internal Brexit – the effects of closing post offices in small villages will be far greater, there will be a detrimental effect similar to what a hard Brexit would have nationally,” he said.
Last year, Harty predicted that some 500 post offices could go, which he said is not far off the 390 proposed closures.
This week’s announced closures come as some 159 post offices take up a remuneration package.
“The remaining 230 post offices will now come under pressure to leave in the not to distant future,” said Harty.
A statement from a spokesperson for the Department of Communications said:
There is a rapid expansion of banking services happening in our post offices.
US, Canadian and Australian dollars and Sterling cash and currency cards are now available in local post offices without having to order it in advance. Post offices will soon have credit card services and will be able to provide loans to small businesses, and personal loans along with their An Post Smart current account, added the statement.
The government is financially supporting the ‘Digital Assist’ service so that people can be assisted in using online services at their local post office.
A commitment has been given by An Post today that the remaining 960 post offices in the network will benefit from enhanced services and products, new opening hours and an investment package aimed at improving services for customers.
Retiring workers thanked for their service
The Irish Postmasters Union (IPU) today “thanked and wished well postmasters and postmistresses across the country who have voluntarily opted to close their post offices”.
The closures are part of a €50 million investment plan that was agreed by the IPU Executive and An Post last April and supported by 80% of IPU members in a ballot.
IPU General Secretary Ned O’Hara said: “It is with regret that any post office is closing.
“However, the IPU would like to thank all postmasters and postmistresses who have opted for the exit package for their service as colleagues and as community people over many years. The union understands and respects their decision.
“For many years the IPU has highlighted the serious challenges faced by the post office network and we backed a reform and development plan last May. This plan aims to secure as strong a future as possible and we believe it is the best way forward”, he said.
With reporting by Órla Ryan
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A tad late. Election on horizon. Independents have done no good..
@Willy Malone:
But they have done little real harm either!
@Michael Kavanagh: sad state of affairs when we begin judging politicians based on who “made less of a mess”
@Willy Malone: I will agree with you on this one. Independents can’t be trusted in government. When unpopular decisions are to be made they can’t be trusted to tow the line and always start moaning when an election is coming near
@Kian:Politicians are the REAL MESS
@Willy Malone: would be better off encouraging his constituents to shop local and pay the little extra in doing so.
@Willy Malone: out comes the kite
@Kian: Nice one Kian. I also smell a election in the air.
€8 Million is the most all these closures will “save”, but yet the Government thinks it’s OK to throw away over €750 million a year on foreign aid to Third World dictators.
https://www.irishaid.ie/what-we-do/how-our-aid-works/where-the-money-goes/
2015 figures
@Edward Smith: “Edward” our track record on foreign aid should be something we are really proud of.
BTW your Facebook account doesn’t seem to exist….you feeling OK?
@Ricky Spanish: I don’t know what’s up with my FB page, I can see it.
Anyway I didn’t use it to troll and abuse Ruth Coppinger.
that is what the government would like u to believe in regards to post office closures i find it impossible to believe that the post office in enniskeane remains opened it is a wee place 6 people would pack it by the way what money do sub post offices cost on post each year for enniskeane in space is not big enough for the population in that area
@Ricky Spanish: We have to borrow that money and then pay interest on it why don’t Brussels just give it to them so we can save on the internet payments, cut out the middle man.
People don’t seem to want to live in villages & towns. If they did, maybe they’d have better local services – back to Planning System!
@AMKavanagh: yep, spot on Sir
@AMKavanagh:
If they had local(ish) jobs the prospect might be more attractive.
@AMKavanagh: Not sure how you came to that conclusion, the majority of people living in rural counties like Cavan and Leitrim already live outside of the urban towns and there is no indication that this will change. Outside of the town where I live there are around forty townlands which go to make up the local postal District. However An Post says that because the town/village has less than 500 people then the post office should close, they are not even considering the rest of the community of 800 people living within 3km of the local post office.
@Chris Kirk: i think he means if the people in rural Ireland actually lived in the towns and villages instead of being scattered over the countryside in one-off bungalows then services likes post offices, buses etc. Would be more viable, which is true.
@Chris Kirk: Its not the delivery office it is the retail office. If people used them they would stay open. Thats the problem An Post receive no government money so it is a business that has to break even at least. Keeping offices open that cost money is bad for business.
If the government or the people want to stop it then it was simple enough.
Use the Post Office, but people dont. I do but I used to work there and I know what spending a few minutes a week makes to turnover. If everybody else did there would not be a problem
A community banking system already exists in this country via Credit Unions. And half of those are losing money, because ratio of lending to deposits is too low. So there’s unlikely to be an appetite from depositors for the German sparkasse type community bank. It’s all about risk and who ultimately carries it. Not the Government; it has enough of that on its plate!
New online players in the marketplace like Flender and LinkedFinance, offer better rates to Depositors and excellent choices to business borrowers with the well thought out plan in profitability, sustainability and solid security.
Michael needs to educate himself on new realities for sustainable banking in Ireland.
@Rory J Leonard: Linked Finance offer investments which can go down too.
Never heard of him, but he’s got his name on the paper at last!
@John Mulligan:
But his hand was obviously slapped out of the pork barrel!
Pity the only buzzword he can think of is “Brexit”
come and have a look at the post office in enniskeane co cork and compare it to what a good post office looks like
Every parish needs a new pump
Too many of the post offices need revamping and modernising to international standards and the government doesn’t see a return on any investment from a purely financial perspective. The post office is part of the fabric of what makes rural Ireland and we should be doing everything reasonable to preserve our culture. Very shortsighted decision that needs to be challenged constructively so do your bit to reverse it no matter where you live.
@Brian: It is not paid for by government at all. It is a stand alone semi state company as regards international standards the system they use ids the best in the world and owned and created by them with IBM years ago. It is the industry top standard.
The reasons they are closing is lack of use. The cost millions each year and not just the obvious costs either.
People to blame the people that dont use the post office
I reluctantly use a big Dublin post office regularly. The staff are scruffy and seem bored with their jobs. The place itself is dull and smelly. I’m all for An Post having a good shake up in Dublin anyway.
@Ali murray: Staff cant be scuffy they would be reported, sorry I am sure An Post will put in cheer leaders and flashing lights for you. Oh and read any of the articles all week. No Dublin Offices are being touched
have your say