Firstly, I join with the Minister in welcoming the report.
We thank Bobby Kerr and the Group for the significant time and effort that went into the report and its recommendations. Much of what is in the report is already in our current plan but we welcome the insights from the group. We look forward to reviewing our own 5 year plan in light of the report’s recommendations and to having the input of Bobby, the various stakeholders and of course our Shareholder.
We look forward to getting the different views as to what the post office network might look like in the future. In particular, we welcome the Government’s support of the network and their acceptance of this report.
Today we provide many services for Government Departments and Agencies but we believe that there are many more Government services that can be provided through post offices. We look forward to working with Government to introduce such services, enhancing the number of locations at which citizens can access Government services.
As the report acknowledges, we have invested in innovation and product development over the years, introducing new options and services. We now provide banking services for three commercial banks (AIB, Ulster Bank, Danske Bank). We have introduced a very successful foreign exchange business and the re-launch of our Postmobile business has gone very well.
In addition we have seen growth in some of our traditional businesses such as the State Savings products which we provide on behalf of NTMA.
We have very recently rebranded our One Direct insurance business as Post Insurance to bring it closer to the post office network.
However, like all businesses, we do recognise that we have significant challenges. In line with all of our international colleagues, the mails business continues to decline due to electronic substitution. Our share of welfare payments is reducing as new recipients choose bank transfers over post office payments. There is significant competition for all of our business activities.
The report highlights the importance of welfare payments for the post office network. That is why we have invested significant time and effort developing proposals for a Basic Payment Account. We are confident of reaching agreement with the relevant Government Departments to introduce this account in the coming year.
An Post believes that it can play a big part in assisting the Government’s strategy on financial inclusion. One recent example is our work with the Department of Social Protection and some Credit Unions to facilitate a trial of micro loans for DSP recipients. We were very happy to be involved in this initiative which could become a part of the national financial inclusion strategy.
Our proposed basic payment account should be seen as an important part of national financial infrastructure while at the same time helping modernise the post office product portfolio and acting as a gateway to introduce a fuller set of financial services through the post office network.
More and more people now wish to do their business in different ways, in different locations and at different times. Like all businesses, the post office needs to innovate and change with the times. An Post has proven over the years that we can face up to our challenges and turn them into real business opportunities.
We are confident that the post office network has a bright future. The review of our strategic plan in line with this report will ensure that we continue to keep the post office network relevant for the customers of today and tomorrow.
Thank you.