Postmasters have issued a warning that 40% of post offices may shut down unless the Government increases its financial support for the network, reports RTE.
The Irish Postmasters Union (IPU) is seeking a 50% boost in State funding, raising it to €15 million annually over a five-year period to sustain the network.
At present, the network receives €10 million per year, but the IPU argues this is insufficient, reports RTE.
Sandra Tormey, the union’s general secretary, told the Oireachtas Communications Committee that 108 postmasters are earning less than minimum wage once operating costs are deducted.
She cited a poll of union members to highlight the severity of the situation, reports RTE.
“If the Government funding stays the same at €10 million, 40% will have to close. We’ve had to absorb 30% minimum wage increases and 15% inflation,” reports RTE.
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“We cannot increase our prices to make our businesses viable. We cannot avail of any supports that Government gives because we are deemed services and not retailers,” reports RTE.
She stated that if the funding were increased to €15 million, 70% of members could see a sustainable path forward.
The IPU says that additional funding would allow for the expansion of in-person public service access and would aid departments and agencies in identity verification and fraud prevention, reports RTE.
Fine Gael TD Micheál Carrigy told the committee that his family’s post office in Ballinalee, Co Longford, would shut down without increased financial support.
“It would be one of the 40% who would go if funding wasn’t in place, the ten million has worked. As a postmaster, we need that €15 million, not just me, but hundreds of other offices and communities across the country,” reports RTE.
An Post CEO David McRedmond said the semi-state body acts as a liaison between the IPU and the Government, and confirmed it supports the IPU’s call for more funding.
He noted a 32% fall in transactions since 2019, reports RTE.
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