Committee Reports > List of Committees > Joint > 2000 > Committee on Public Enterprise and Transport > Report - Meeting with An Post & Irish Postmasters' Union

APPENDIX 2

Joint Oireachtas Committee on Public Enterprise and Transport

The National Network: Post Offices In the Millennium

Submission by the Irish Postmasters’ Union, November 1999

SUBMISSION TO JOINT OIREACHTAS COMMITTEE ON PUBLIC ENTERPRISE AND TRANSPORT

25^th November 1999

1. INTRODUCTION

The members of the Irish Postmasters Union welcome this opportunity to meet with the Joint Oireachtas Committee on Public Enterprise and Transport.

The Irish Postmasters Union wholeheartedly supports the non-negotiable commitment made by Government to maintain a nation-wide Network of Post Offices throughout the country. This commitment should remain at the heart of public policy towards the Post Office.

We believe that this commitment can only be honoured if it is recognised and accepted that the Post Office Network is in urgent need of reappraisal and investment.

The IPU is a progressive organisation representing in excess of 90% of Postmasters and is committed to the continuing development of a nationwide Network of Post Offices. In response to increasing competition, the changing needs of Post Office customers and alterations in lifestyles, the IPU acknowledges that the role of the local Post Office may require modification; its range of services enhanced; and its customer base extended - as part of a broadly based review of its functions.

The key issues are:

*Elimination of artificial barriers which prevent Post Offices from providing a full range of services to their communities

*Additional capital investment especially in new technology

*The need to exploit the opportunities now opening up as a result of developments primarily in Modern Communications and Information Technology

*The need to meet the challenges now facing communities as a result of these changing technologies including e-commerce and the Internet

*The creation of new business opportunities

2. THE NATIONWIDE NETWORK

Both the size of the Network and its country wide provision of services and information are fundamental parts of the traditional strength of the Post Office Network.

The size of the Post Office Network is also a marketing advantage for An Post and one reason why it is used by major corporate clients and state bodies.

There are approximately 1,800 sub-Post Offices in the Republic of Ireland, run by private individuals (Postmasters and Postmistresses) on a contract for service basis with An Post. Not only does the sub-Post Office Network represent over 90% of Post Office outlets, Postmasters account for over 70% of all the Post Office counters business.

In addition to the counter transactions, within the Network there are approximately 700 Post Offices which also operate a Mails Sorting Office from which delivery and collection of mail is effected.

Post Offices act as a focal pointed not only in rural towns and villages but also in communities and urban centres. Post Offices provide an economic service, but they also have a very important social role. The Post Office provides everyone in its catchment area with a common point of call and is a crucial cohesive force which likely has no viable alternative. Indeed for very many people and particularly in remote communities the Post Office is frequently the only point of contact throughout the week. It is these services and these values which are at the heart of rural life and urban communities.

A great number of routine transactions such as form filling or handling of social welfare payments require a high degree of tact, discretion and sensitivity which the local Post Office provides. They represent the human face of bureaucracy, paying out state benefits and mediating Government services and information to local people, including the socially deprived and the elderly.

With a growing dependency ratio (mainly amongst the elderly section), it seems likely that the categories most in need of local Post Offices will be on the increase in Ireland in the decades ahead (Titan 1998). It must be remembered also that those most in need of Post Offices are often those least likely to be able to travel longer distances to access services. These people, their families and carers must not be forgotten - services will have to be maintained if their quality of life is not to deteriorate.

Thus the real and symbolic value of the Post Office especially in rural Ireland is such that any dramatic or radical reduction in the Network of services is to interfere in the very fabric of peoples lives. Moreover, it is axiomatic that the reduction of Post Office services can weaken the economic base which in turn can contribute to a cycle of decline. “The Post Office is an essential service in a community. It also helps to protect the vibrant local economy. For example, if a Post Office is located close to a shop, then pensions etc. are more likely to be spent in the local area. Post Offices also have a social remit, especially for elderly people; so when cost benefit analyses are being made, necessary account should be made for this”. (Titan, 1998, P. 39).

A similar point was made by Rural Development Policy Advisory Group in its recent report (1997).

Pay Crisis.

However, the fact remains that the Post Office Network is starved of vital resources and this is a major and continuing concern for the IPU.

It is also a continuing concern that An Post is refusing to recognise that it has both an economic and social obligation to maintain the National Network of Post Offices. As a result the cost of supporting the Network weighs heavily on Postmasters and Postmistresses.

Figures for 1998 show that over half the Post Offices in the country (926) earn a gross income of under £10,000 a year. Over 500 Postmasters (about 30%) earn less than £6,000 per annum gross. Out of these small earnings Postmasters must meet the full costs of running a business. These costs include provision of premises, staffing, other business costs such as lighting and heating etc. The situation facing larger Post Offices is almost as critical as they face every increasing accommodation and staff costs.

A recent independent report commissioned by the Union indicates that the true income of Postmasters after allowance has been made for accommodation, staff and other overhead costs is, for well over half the Network, below the proposed statutory minimum wage.

The payment made by An Post to Postmasters is fixed every 3 years based on the volume of actual transactions carried out. Payment is made for each such transaction. Postmasters have a basic working week of 46.5 hours but they are not paid for the time and service they provide; rather they are paid according to the volume of business only.

Hence we have a state body pressuring people locked into a rigid payment system. This has resulted in the net income of a large proportion of the Network being less than unemployment benefit or the old age pension. At the bottom of the scale many Postmasters net as low as £1.50 per hour of business - around one third of the proposed statutory minimum wage.

It is clear that the Post Office infrastructure is at risk and that its continued survival can no longer be taken for granted.

Because of the pay crises many Postmasters would gladly settle for a golden handshake from An Post and look to Social Welfare to support them thereafter. One could scarcely describe this process as citizen centred development especially when the service now on offer is so much appreciated by communities.

Failure to intervene to protect the local Post Office would be a vote of no confidence, a lessening of the status and dignity of the community, and concession to defeat and demoralisation.

It is clear that a radical overhaul of the financial priorities within An Post is urgently needed. This should include direct Government intervention where necessary to ensure that the Postmaster is no longer charged with subsidising An Post and local service provision.

3. DELIVERING A WIDER RANGE OF TECHNOLOGY DRIVEN SERVICES.

The main goal of a Post Office is to give primacy to customer needs in the delivery of relevant public services. Post Offices should meet these community obligations in an inclusive way, giving the same availability and quality of service whether the community is rural, village, town or city.

Automation.

The Government has a policy of maintaining a nationwide Network of Post Offices and no Post Office closures, but An Post’s policy is the opposite. An Post is refusing to introduce automation to almost half the Post Offices in the country and ultimately these communities. An Post by refusing to automate is forcing Post Offices to wither on the vine until they disappear.

Moreover it is discriminatory against hundreds of thousands of people throughout rural Ireland to deny them access to the full range of Post Office services and other public services which can now be available as a result of modern technology.

At a time when Ireland has declared its intention to be the e-commerce hub of Europe if not the world, is it acceptable that a state body takes a conscious decision to exclude hundreds of communities from accessing through the local Post Office such core services as, money orders, Post Office savings bank, Prize Bonds, Passport Express and so on, when the sole criterion for exclusion is the rural location of the Post Office?

The IPU understands the need to provide a modern, secure, cost effective, robust and fully accounted service to the public. In this context it is quite clear that automation is crucial in making these objectives achievable on a uniform basis throughout the Network. It is economic madness to refuse to allow 900 Post Offices provide additional automated services to their communities - services, which will increase the income of the Post Offices, enhance the viability of the community and enrich the lives of citizens.

The refusal by An Post to automate 900 sub-Post Offices located in the smaller towns and villages throughout this country is disgraceful. The local Post Office enriches our communities and our country. That is much bigger and more important than any single state body. In line with the EU policy to preserve rural areas as living spaces we are now calling on the Joint Oireachtas Committee on Public Enterprise and Transport to use your influence to have An Post’s automation programme extended to the remaining 50% of the Post Office Network. Extension of this automation programme is absolutely essential to the survival of the 900 rural Post offices in our towns, villages and townlands.

It is well documented, that where you have people collecting their state benefits and doing their business at the local Post Office, that in turn helps retain services and contributes to the overall regeneration of the community. The opposite is also the case. Where people are incentivised away from their local community or forced to travel to larger towns and cities for basic services and away from small Post Offices and village shops, this can only result in an accelerating rate of decline in the provision of these essential services in many communities.

Moreover paper based systems are inherently cumbersome and with automation have become increasingly outdated. It is therefore further economic madness for An Post to seek to run two parallel systems one manual and one automated. Put simply, asking Postmasters to compete with outmoded paper based systems and ever reducing services is like trying to run up a down escalator with both hands tied behind your back.

Summary.

Unless the entire service is automated immediately, the certainty is that those un-automated Post Offices will disappear. Starved of resources and the commercial opportunities of automation, the Post Office will become irrelevant, their decline and demise virtual certainties. The loss of a local Post Office can initiate or reinforce a process of decline, which ultimately weakens the economic base of the community and diminishes its attractiveness as a residential or business location.

Information Technology.

The IPU recognise that the rapid development in commerce and business applications of Information Technology means that the Post Office of the 21^st century will have a different environment to that which we all know at present. Radical change in the every day business of our Post Offices is certain.

However, it is also certain, that the enormous challenges of the future are matched by substantial opportunities. Information Technology has the capacity to overcome the traditional problems of communities and citizens feeling distanced from the centres of business.

Now for the first time as a result of Information Technology, all citizens irrespective of location can have equal access to Information and Services at the touch of a button in their local community. Information Technology supersedes location and has an enormous contribution to make to the revitalisation of local communities by disseminating information, providing additional services and generating new opportunities for inclusion.

The Union over the last couple of years has been to the forefront in pioneering the concept of the Post Office as a “One Stop Information and Service Centre”. At present we have four very successful Pilot Projects in Céann Trá (Ventry) Co. Kerry; Ballyheigue, Co. Kerry; Kilmihil, Co. Clare and Loughlynn, Co. Roscommon. In consultation and co-operation with communities these Post Offices developed and now provide an extended range of services.

These services include comprehensive information on Social Welfare entitlements, Teagasc Schemes, Tourism, FÁS Schemes, Revenue, Bus and Train Timetables, Local Education Schemes and so on. Of great significance to this Pilot Project was the introduction of Information Technology providing enhanced services and information links between the State and the local citizen and also providing a range of local services. New services include Internet access, e mail, tele conferencing, all provided in a contemporary technological environment but delivered as previously in a friendly, efficient and confidential manner and at an economic cost.

Also provided are Fax and Photocopying facilities and services such as Passport Express Photographs.

The levels of take-up from all sectors of the community has been very substantial. It includes local businesses, shops, hotels, golf clubs, farmers, G.A.A., people e-mailing wedding greetings, death notices to the local media, children checking for their e-mail and sending messages to friends and relatives both in Ireland and abroad. We also have children and indeed others including local businesses, using the Internet to research their particular topics.

Post Office Service and Information Centres have been greeted with great appreciation by the communities. Post Offices are convenient places to visit to find out information on Government Services, whilst at the same time offering access to other services (e-mail, Internet, etc.). Our experience is that when people need information the biggest problem is knowing where to go to obtain it - as it is potentially available from so many different sources - and having confidence in its comprehensiveness and reliability. Knowing where and how to access reliable up to date information is the key to meeting customer demand.

The Pilot Projects have clearly demonstrated that the Post Office is an ideal access point for information and services available under one roof and thereby, better exploiting the benefits of Automation and Information Technology. The experience and success to date of the One Stop Post Office Service and Information Centres also demonstrate that the models can be developed to the point of commercialisation for the Network as a whole.

Summary.

The IPU believe that all communities have a right to these facilities, and an equal right to the benefits offered by new technology.

The IPU would wish to continue dialogue with the Government, An Post and other interested agencies to bring this extended service to market through Post Offices in each community.

White Paper On Rural Development.

The Union greatly welcomes the commitment by Government - as stated publicly by the Minister of Public Enterprise Mrs. Mary O’Rourke and also in the Government White Paper on Rural Development - to the retention of the Post Office Network. We welcome that the Government intends to use the Post Office Network “for the delivery of the most comprehensive range possible of state services to all citizens”. … The Government has decided also to develop the Post Office Network to provide a “One Stop Shop” service and an Interdepartmental Committee has been established to further this programme.

In the White Paper the Government also stresses the importance of information and communications technology especially for rural communities and in that context also stresses Governments commitment to the retention of the Post Office Network.

We are delighted that the Government have accepted that consideration and revitalisation of the Irish Post Office Network should be placed and remain at the heart of public policy. These are important commitments on behalf of Government and it is now vital that a framework is urgently put in place to achieve the stated Government policy and objectives.

The future is crucially dependent upon modernisation and automation of the Network of Post Offices but for this to happen requires both the commitment and the ability to invest in the creation of the necessary infrastructure. The existing One Stop Pilot Post Office Projects demonstrate the wisdom, value and indeed the necessity of investing in the Post Offices as an information service hub for the future protection and renewal of local communities. What is now needed and needed urgently is the framework for investment and the timescale for completion.

Summary.

The IPU believes that a key to the development of the policy programme is a partnership arrangement of Government, An Post, IPU with regular meetings. In the past Postmasters have had little opportunity for involvement in decisions made by the Business. Those decisions not only affect the profitability of An Post, but also the livelihood of the individual Postmaster. It is a fact that Postmasters remain the largest single commercial grouping within the Post Office Counters Business handling some 70% of all that business. It should also be recognised that Postmasters are the only group who have made a personal financial commitment to the An Post Business which the Irish Postmasters Union estimates to be a combined capital investment of in access of £5 million.

Social Banking.

A continuing priority for the Irish Postmasters Union has been a wider access to banking facilities and financial advice whereby all citizens can have access to a basic account, offering savings and direct debit facilities. The Post Office Network probably has a unique capability to facilitate access to wider use of banking facilities.

Available evidence points powerfully in favour of the Post Office as the “Village Bank”. The Post Office Network constitutes the largest potential banking facility in the country; the opening hours are the longest and it is renowned for its acceptance in rural and urban areas.

Whilst the number of citizens holding bank accounts has increased over the years, the fact remains that hundreds of thousands of citizens eligible to hold accounts do not. The provision of banking services at the local Post Office provides a real opportunity to broaden the base of account holders and offers a much needed banking facility to local people, small and medium businesses. It would encourage and strengthen local commercial activity within the community and also increase the volume of transactions at Post Offices. This in turn will greatly strengthen the viability of the Post Office and of its community.

The Post Office would also offer banking services which are increasingly not available through other banks as they continue to pursue ongoing closure programmes which are unlikely to be reversed. Using Post Offices would ensure that basic banking facilities are available to all citizens irrespective of social class, literacy levels, or income bracket.

The Post Office has an established reputation for providing savings through Savings Accounts and Post Office Savings Bank.

The potential therefore exists to explore the possibilities of partnership arrangement between An Post and other banking institutions. However, the preferred option for the Irish Postmasters Union is development and expansion of the role of the Post Office Savings Bank to offer secure cost effective banking to the Post Office Network. The Post Office offers a ready made capability to handle high volume low value deposits and withdrawals as well as commercial banking.

Under present arrangements we have the ludicrous situation where a Post Office is not allowed to cash a third party cheque for a customer. This is particularly inconvenient for those wishing to cash FÁS cheques, Health Board cheques and other Government cheques. It is clear that a cheque cashing facility is a very necessary item in village life. Also the Laser Cash Back facility is another modern day facility that could be easily handled at Post Offices. Indeed there is no reason why a Postmaster could not be trained in the business of discussing with customers the possibility of raising a loan especially small personal loans.

Summary.

It is clear that in order to meet its obligation to ensure the continuing viability of the nationwide Network and develop its business into the future, An Post must fully exploit the opportunities presented by automation and modern technology to delivery a wider range of services through the Post Office Network, particularly in personal banking and personal financial services.

Business Opportunities.

Today Post Offices are facing much tougher competition including from large financial institutions such as banks which are increasingly targeting core Post Office business. At present domestic household bills can be paid through banks and Social Welfare recipients have an option of having their benefits paid directly into a bank account.

It is clear therefore that An Post does not enjoy a monopoly in its role as provider of benefit distribution on behalf of the Department of Social Community and Family Affairs. Social Welfare business represents 48% of total business transactions at sub-Post Offices and is the core business which ensures their day to day survival.

Recognising that the facilities are already available for those customers wishing to use their bank, it is essential that the present level of exclusivity which An Post has in relation to provision of Social Welfare Payments at the local Post Office is fully retained and strengthened.

In this regard the Union welcomes the recent decision by Government to extend for a further 3 years the existing Social Welfare Contract between the Department of Social Community and Family Affairs and An Post. The Union would urge that this contract is extended indefinitely as without the current level of exclusivity the Post Office Network would be dismantled; this in turn would make it impossible for Government to hold its commitment to maintain a nationwide Network of Post Offices. It would eliminate vital customer choice including the choice of receiving benefit payments in cash.

In view of increasing competition, and to enable Post Offices survive, they must be given the opportunity to compete for new business such as ESB Bill Payments and Motor Taxation. At present, ESB is the only domestic household bill that cannot be paid through the local Post Office. This frequently means that older people and citizens without bank accounts have to travel lengthy distances to pay their ESB bill when all other bills can be paid at their local Post Office. Public demand for ESB Bill Payment at the local Post Office is high.

In this context the Union greatly welcomes the announcement by Government on 27 May 1999 to develop the “One Stop Shop” service which “will involve consultations on the provision of facilities in Post Offices in some areas to enable the payment of electricity bills and air line tickets…”.

The Union strongly urges that ESB Bill Payment facilities be now made available at the local Post Office offering an immediate and major benefit to communities and increasing the viability of the local Post Office.

Growing competition also undermines the importance of extending the business base of Post Offices. State and private agencies should be encouraged to use the Post Office services. For example state payments including to farmers, Health Board Payments, FÁS Payments and Motor Tax should be available through the local Post Office.

As stated the Post Office no longer enjoys the monopoly in its role as provided of benefit payments, postal services, bill payment facilities etc. It faces intense competition for its core business. Therefore, new business development opportunities should be opened up to work towards improved service provision to communities and consolidation of the Post Office Network.

4. INVESTMENT

There is widespread concern amongst Postmasters at the absence of financial planning which would enable appropriate investment to develop and sustain a National Network of Post Offices and with an equitable financial return for Postmasters.

To date the investment of An Post in the Post Office Network has been uneven and does not appear to be driven by considerations of balanced cost benefit analysis and universality of services. Rather it would appear that market forces have priority. This “balance sheet” approach carries within it a disabling dynamic, as has been acknowledged by Titan (1998), and the Rural Development Policy Advisory Group (1997) and NESC (1994). As the NESC in 1994 suggests, “Complimentarities and Interdependencies” between different sectors should be taken into account when decisions about public service provision are being taken.

The IPU supports this view. Choices on grounds of simple market forces can and in this case are fundamentally flawed.

It is in no small measure through the considerable capital and labour investment of Postmasters and Postmistresses that the current countrywide Network of Post Offices has been sustained. This situation cannot continue indefinitely. It is necessary for Government and An Post to now develop and consolidate the Network and ensure continued services to local communities.

An Post has a primary role in this regard not least in relation to automation. As already stated, incomplete automation has left almost one half the Post Office Network without the benefit of this technological advance, with potentially disastrous consequences for the future of those Post Offices and their communities. Automation undoubtedly improves the financial viability of the Post Office; this in turn, can be substantially strengthened by exploiting the opportunities offered through Information Technology as discussed earlier.

Summary.

The Union is now calling on Government to ensure that An Post stop their tactics of trying to achieve Post Office closures through the back door and recognise that the “monetarist economic model” is out of kilter with modern thinking in a balanced social and economic Ireland. The time has come to stop dragging feet and hiding behind short sighted economic balance sheets, and put modern automated facilities into the almost 1,000 Post Offices still without any automation. The time has come to ensure that all Post Offices have the technology to deliver modern information, communications and services to citizens in every community.

Postgem Ireland On-Line.

The Union has greatly welcomed commitments by the Minister for Public Enterprise Mary O’Rourke in support of development of the Post Office Network. This is particularly important in the context of money now available through An Post as a result of the sale of Postgem/Ireland On-Line which realised a profit of £104 million. As this Oireachtas Committee will be aware the issue of investment in Post Offices was addressed by the Minister at the Press Conference. “An Post is facing into new competitive challenges and the use of some or all of the capital proceeds from this sale will allow An Post to achieve its plans for major capital investment, including investment in the rural Post Office Network”.

While this undertaking is welcomed by the Union, Postmasters remain concerned at the absence of any discussion with the IPU in relation to how this money will be spent by An Post or the proportion to be spent in developing the sub-Post Office Network. Capital investment in automation is critical.

Financial allocations must now be determined as a matter of urgency to ensure that Government commitments in relation to the development of the Post Office Network become a reality. Unless the remaining 900 Post Offices are automated immediately their decline and demise are inevitable.

Such investment would play a crucial role in protecting the Network and enabling the Post Office improve the quality of provision and enhance the range of services and information available to the local community. The Union has put comprehensive development plans for the Post Office Network to An Post and over the last number of years sought more effective partnership based on common goals.

Consultation and jointly agreed spending targets including in relation to the £104 million gained as a result of the sale of the Postgem/Ireland On-Line is not an option but an imperative to enable Post Offices survive and Postmasters better serve the needs of their customers and increase levels of business transacted through the Network.

The National Development Plan.

The recent launch by Government of the National Development Investment Plan opens up unparalleled development and investment opportunities and new horizons to develop capability across just about every sector in the economy. The Plan places emphasis on value for money, “Development Hubs” balanced development and improving quality of life.

As part of the development process it is essential to ensure that the Post Office which pioneered modern communications is not left behind in the world of Electronic Commerce and Information Technology. With very modest investment, the Post Office is ideally placed to make available to the average citizen, at a reasonable cost, a system of electronic communication that now is in danger of being available to the big business world and wealthier citizens only.

This point is borne out by the recent discussion document from the Information Society Commission. “Awareness of new technologies is already at a very high level in Ireland. However, actual use of such technologies is still relatively low. Certain sectors of society are particularly at risk of being left behind and it is essential that we avoid compounding problems of social deprivation by creating a new under-skilled, under-class”.

Along with the local school and library the Commission recommends that “Given the reach of Post Offices around the country and the role that they have traditionally played in the community, Post Offices could make an important contribution to the development of the information society in Ireland by acting as IT access centres in the future”.

The present Post Office Pilot One Stop Information and Service Centres fully bear out the contention of the Information Society Commission and very many other sources such as Titan and NESC.

Already the IPU has shown that the Post Office can provide a seamless link between the traditional and the modern. It can make available new services (e-mail, Internet access, tele-conferencing, word processing, etc.) in a contemporary, technological environment and deliver them as previously in a friendly efficient and confidential manner and at an economic cost. Very importantly the Post Office enjoys the confidence and acceptance of the local community.

Our contention is that the Post Office Network representing as it does the largest single Network of outlets in the country is already in place and that the personnel are on site to delivery this service. What is required is the investment in the infrastructure of the service.

Summary

That a solid basis for investment in the Post Office Network now exists is without question. The IPU is therefore strongly recommending to Government that in making decisions, on final allocation of funds, that the investment needs of the Post Office are identified and accepted; and that the necessary resources are provided.

The Post Office is a fundamental part of the economic and social structure of local communities and it also has major symbolic value for that community. Investment at this time of unprecedented economic boom will both represent and confirm the confidence of the state for local people and their community.

Strategic Alliance.

The Union notes the recent statement by the Minister for Public Enterprise Mrs. Mary O’Rourke that An Post will remain a state Company and will seek a strategic partner as part of its development.

Reference was also made to the likelihood that An Post would offer an employee share option plan (ESOP) the details of which are being negotiated with An Post Trade Unions.

It is the firm view of the Irish Postmasters Union that any strategic alliance with An Post should take full cognisance of the role of An Post in ensuring universality of Post Office services, within the existing Post Office Network. A strategic alliance should improve the competitive advantage of An Post and its capacity for investment in future success of all Post Offices. A key objective should be to offer the Post Office access to other sources to finance investment activities and allow the opportunity to offer a wider range of products and services through the Post Office Network to the public.

One of the oldest public private partnerships has been that between the sub-Post Offices and An Post. As previously mentioned Postmasters and Postmistresses have invested heavily in their businesses over the decades, and are the only group who have made a personal financial commitment to the An Post Business. It is essential that the contribution of the Postmaster and the Postmistress for the best part of the last century is now recognised and that the benefit option of an Employee Profit Sharing Scheme within An Post is opened up on an equal basis to Postmasters and Postmistresses.

Postmasters and Postmistresses have greatly contributed to the profits of An Post over the years; an opportunity now exists to allow Postmasters and Postmistresses become stake holders in An Post on a formal basis.

Erratum

Page 12.

2^nd last paragraph, first line - “undermines to read underlines”

Government Rural Renewal

Post Office Project

An Updated Evaluation

1^st February, 1999

By

Dr. N. Ní Mhurchú

(Report prepared in conjunction with the Irish Postmasters’ Union)

Background to the One Stop Post Office Pilot Projects

Initially, two Post Offices, in Ballyheigue (Co. Kerry) and Kilmihil respectively were selected to participate in this Government/EU funded pilot scheme for rural renewal, organised and moderated by the Department of Agriculture. The pilot scheme was later extended to include Ceann Tra Post Office (Kerry Gaeltacht) and Loughglynn (Co. Roscommon). The objective was to identify best practice in the area of integrated service provision, using the post office as a base, and with the goal of facilitating rural renewal as its guiding principle.

The One Stop Post Office offers a fresh dynamic as a model for community development. Its ultimate goal is to be an exemplar of good practice that is both traditional and progressive: Traditional in the sense that the post office, in the past, has occupied, along with the church and the school, a unique position in the life and affections of the people it serves, and wishes to retain those values; Progressive in the sense that the post office of the future can best serve its community and confront the challenges of modern life and rural decline by offering an extended range of services, exploiting the opportunities afforded by technological development and facilitating access to an integrated system for the provision of public services and information.

Of great significance to this pilot project is the knowledge that the Post Office Network offers a readily available, extensive system for the provision of enhanced services and information links to rural Ireland. The local rural Post Office Network is uniquely placed to serve the community in this way and thus facilitate rural renewal. This is especially evident from the community response to the innovations and enhanced service provision in the Ballyheigue and Kilmihil Post Offices (as ascertained by a structured questionnaire which was administered monthly).

General Aims of One Stop Post Offices

As already stated, the central tenets and guiding principles of this pilot project are to deliver, and facilitate the delivery of, an enhanced range of information and services to a rural community within its own locale, using the post office as a key facilitator, with the purpose of arresting rural decline and centralisation.

Central to this project is the objective of maximising the extensive national post office network to deliver a mediated information and communications technology service to its customers. Associated with the advantages of tradition, community acceptance and an extensive network are other issues. Chief amongst these are the desire to empower the local community, enhance its quality of life, and supply a dynamic that will facilitate commercial activity, reverse the glacial movement towards centralisation and, thus, promote rural renewal.

Thus, key concerns of the this project also include the desire

•to enhance the social and economic life of the community

•to retain and circulate cash within the local community and to avoid a haemorrhage of resources to the larger urban centres

•to generate local commercial activity

•to offer access to a wide range of information and services by harnessing the potential of modern developments in ITCs.

•to build upon and develop the long established social service role of the post office.

Enhanced Range of Services

The enhanced range of services available in the One Stop Post Offices in the pilot project and, by extension, in any future project that has broadly similar aims, include the following:

•Internet Access (information and services)

•Word Processing

•Scanner

•Video conferencing

•Use of a wide range of software / CD Roms

•E Mail

•Web Sites

•Fax Service

•Photocopying

•Printing (from disc; colour and black and white)

•Dedicated Information Centre

•Computer Training (via community linkages)

Central to this project and its success is the fact that it is a mediated service, available locally and in a familiar environment. Well-informed, concerned post office personnel is a vital human resource that compliments and makes acceptable the technological apparatus that is often daunting to the uninitiated. It must be acknowledged that some people remain ‘technophobic’. However, a friendly service, familiar surroundings, timely advice and appropriate training can go a long way to break down barriers and resistance. It is our contention that the local post office is best placed to deliver this service in a way that is efficient, equitable, and cost-effective.

In short, after an initial capital outlay, the four post offices in the post office pilot scheme have offered an enhanced range of services while simultaneously developing an internal dynamic that generates profit without requiring continuous current capital investment. While occasional upgrading and that generates profit without requiring continuous current capital investment. While occasional upgrading and maintenance will be required, the project’s potential to generate a profit, honour its aims and be sustainable, is not in doubt.

Please see the companion document that accompanies this submission for a more detailed outline of this exciting innovation.

One Stop Shop Post Offices: An Update

1^st February, 1999

The Ballyheigue Post Office continues to function at a high level of efficiency as a centre for the delivery of a multifaceted and integrated range of services to its catchment area. (See companion document for a detailed outline of the situation up to July 1998.)

COMPUTER

The pattern of usage of the computer (scanner, printers and Internet) continues to be high, peaking in the summer months, due to the seasonal nature of business in a seaside town such as this. Average usage of the computer: 5 hours daily. The computer must be booked and is rented in hourly and half-hourly increments. Students and local business people, amongst others, use this facility to research and prepare reports, design promotional material/advertisements etc.

The eMail facility remains as before: Approx. 50 people making regular usage of the service. Use of this service peaks in the summer, due to the influx of visitors checking their Hotmail numbers and replying to messages. Specific eMail numbers may be required in the future for those who wish to further protect their privacy.

The video-conferencing option, as already stated, is perhaps too advanced technologically at present. It attracts little usage because few have the appropriate reciprocal technology to avail of it.

The computer modem has had to be replaced, as a result of a power surge during the Christmas storms. Apart from that, no maintenance has been required.

PHOTOCOPIER

The counter reads 28,600 to the nearest 100. This means that, at 10p. a page, the photocopier has generated significant revenue. It has required little or no maintenance.

The local director of FAS (which employs 35 workers) avails of this facility on a regular basis, as does the GAA Club, Golf Club, and a factory that makes Montessori educational materials, amongst others. As the photocopier has been broken in both local schools for some time, the Post Office has benefited from the additional business. An important point here is that people who come in to the Post Office for photocopying, or to avail of any other service, often remain, or return, to purchase goods in the shop.

PASSPORT SERVICE

The passport photography service is attracting daily usage, due to the increase in foreign travel. The take-up is approx. 10 weekly. This is an excellent integrated service, offering form availability in the P.O., passport photography on site, and Passport Express service via An Post.

In addition, the service is used by local Clubs for the production of membership/ID cards.

Charges for the computer and related services are flexible to build up customer base.

FAX SERVICE

At present, an average of 35 faxes per week (20 outgoing, 15 incoming). Many of those using this service are repeat customers: Golf Club, business people, those preparing quotations, the aforementioned factory. Many incoming faxes are delivered via the Postman.

INFORMATION SERVICE

As before, the Ballyheigue Post Office continues in its well-established and much appreciated role as a valuable information resource.

CONCLUSION

The One Stop Post Office in Ballyheigue is fully operational and is functioning at a high level of efficiency and expertise. The integrated range of services has achieved a significant purchase on the consciousness of the local community. Such is the level of need, acceptance and uptake that that the local community now views these post office services as the status quo. They have become assimilated into the public consciousness and are no longer viewed as a novelty, but as a necessary compliment to daily social and commercial life.

KILMIHIL POST OFFICE

As outlined in the companion document that accompanies this update, the Kilmihil Post Office pilot project continues to serve its community by offering the same range of services that is available in Ballyheigue (with the single exception of the Passport service). The increased trade thus generated is significant and is best seen in the light of Kilmihil as a stand-alone Post Office.

THE COMPUTER

The computer facility (incorporating e-Mail, Internet access, scanner, printers and software) has successfully consolidated its customer base. The take-up includes students, business people and a wide range of voluntary organisations (IFA, ICA, ACA, GAA, Macra na Feirme, Legion of Mary and St. Vincent de Paul).

The demand for the service is steady and the average daily usage is now between 3 and 4 hours daily, peaking during school holidays. This service has assisted many individuals and organisations, both voluntary and commercial, to prepare reports, quotations, promotional material and financial statements. On site advice and encouragement for those who lack basic computer skills is a much appreciated feature of this service.

The e-Mail facility now attracts approx. 25 core users. This is a steady demand and is not seasonal in nature.

The teleconferencing service, as in Ballyheigue, does not attract much usage. A technology-led innovation, it has not been fully exploited as a resource, since few have the reciprocal technology to harness its potential.

PHOTOCOPIER

In constant demand - usage averages approx. 300 copies a week. This service is availed of by a wide cross-section of the community.

FAX

Has stabilised at an average of 200 pages per week. The fax facility, being the only publicly available fax machine in the area, attracts a lot of repeat business.

INFORMATION DISPLAY

In constant use - an excellent and comprehensive information service for locals and tourists alike. This information resource is constantly being expanded and updated. The display is also changed to conform to seasonal patterns and in response to customer requirements.

CONCLUSION

While it is difficult to fully capture the vibrancy of the Kilmihil Post Office project in a brief report such as this, its social and economic value to the community, and its sustainability are evident. The services on offer include the full gamut of advice with form filling, informed responses to tourist and local enquiries, and guidance with more complex Social Welfare and related matters. Also on offer is friendly on site advice on balance sheet layout, word processing options and basic computer skills etc. for those uncertain about such matters.

The Kilmihil Postmaster’s active role as Secretary of the Parish Council and the links he has established with the local VEC, the Community Development Committee and other local agencies mean that information about the enhanced range of services available in his post office continues to percolate throughout the local community. It also encourages and facilitates quality feedback and allows new applications for this technology to be nuanced to local needs.

The Pilot Project in Kilmihil is generating a profit and is sustainable in the future without further subsidy. The integrated range of services has contributed, no doubt, to the generation, retention and circulation of money in the local community. It has also improved the information flow between individuals and agencies and for those involved in commercial and voluntary organisations.

Phase Two: Ceann Tra and Loughglynn

The final two Post Offices in this update belong to Phase Two of the project. Accordingly, they are relatively new to the scheme and are at an earlier stage of development. Thus, they have been evaluated with this in mind.

CEANN TRA

The post office in Ceann Tra is a recent participant in the One Stop Post Office project. Situated in the heart of the Kerry Gaeltacht it has also greatly benefited from this project, as has the community it serves. Its idyllic location might belie the scale and nature of the challenges that confront this rural Gaeltacht community. These include a peripheral location, a declining indigenous population, the seasonal nature of its trade and an underdeveloped industrial base. While rooted in traditional values, this forward looking community is sharply focused on the very many advantages that modern technology can offer for the preservation and development of their community. The Ceann Tra Post Office, and the community it serves, will benefit enormously from the enhanced range of integrated services currently available.

COMPUTER

A number of problems related to the installation of the computer and its related peripherals have now been resolved and the computer facility is beginning to attract steady business. A relative newcomer to this project, Ceann Tra Post Office has made available a private space for the delivery of this service and has already succeeded in attracting a range of customers to its service.

While it is now fully operational, the Postmaster, Seamus O Luing, has wisely delayed the official opening of this service until all operational problems have been sorted out and so that it will coincide with the beginning of the 1999 tourist season. The Official Opening will take place this month (or early March) and will be accompanied by a concerted promotional campaign in the local media.

Video-conferencing: Previous comments re. Ballyheigue and Kilmihil apply. However, the sound card for this facility needs to be replaced, as it is delivering picture but no sound.

With regard to computer usage, at present it is estimated at 2 hours daily. Mr. O Luing expects a significant surge in demand, due to a combination of circumstances - Official Opening, tourist season beginning, and all services fully operational.

E-Mail: 12 incoming, 15 outgoing.

PHOTOCOPIER

Usage in January: 350. It is availed of by local groups, (especially, a writing school) and Church organisation.

FAX

At present, 40 per month.

LOUGHGLYNN POST OFFICE

The project has also recently been extended to include Loughglynn Post Office, Co. Roscommon. This post office shares many of the problems and concerns of the other post offices in the pilot project and, in particular, those confronting Gaeltacht areas. Again, the community has identified the One Stop Post Office model as a vital bridge between the community and public services. It can also act as a community access and training facility. In enthusiastically welcoming the project, the community recognised that this developmental role for the post office in the community will make a major contribution towards addressing social disintegration, stimulating commercial activity and helping remote areas such as this retain their uniqueness, viability and independence of spirit.

COMPUTER

The main take-up is amongst young users - schoolchildren completing projects and university students completing assignments. Internet browsing amongst the same users.

In Loughglynn those who already know how to operate the computer have been quick to avail of the service. Uptake amongst older users is slow, but beginning to increase. Training is, of course, a critical factor in this small village. As a private computer training course is being taught locally, it is expected that the spread of usage will widen over time.

The uptake: 1-2 hours a day.

Word Processing: Regularly used by voluntary organisations such as the GAA, the Soccer Club, the Drama Society to produce leaflets, posters and other promotional material. Also used by individuals, students and clubs to prepare CVc, reports, invitations, sports fixtures, results. As many computer owners do not own the related peripherals that make up the ICT package in Loughglynn (scanner, printers, digital camera), they are delighted to avail of the service in the Post Office.

E-Mail - Not in regular use as yet. Will attract considerable usage when people become familiar with its potential to communicate speedily and cheaply, irrespective of distance.

Digital camera - Very useful for research, especially when students/individuals wish to capture a local scene, or family event. The image(s) can be scanned later, printed, stored and/or transmitted electronically. The feasibility of using the digital camera for Passport photography using high quality photographic paper has not yet been established.

Tele-conferencing - Not operational as yet. Given the experience in the other Post Offices in this study, this is, perhaps, no great loss at present.

PHOTOCOPIER

As this is the only photocopier accessible to the public within a six mile radius, it is availed of regularly. Weekly uptake is between 90-100 pages with a wide spread of users that ranges from the local Gardai to students and the aforementioned voluntary organisations.

FAX

12 weekly - and increasing. (Gardai use it regularly.)

Note: The pricing for all of the above services is flexible, especially where young users and those with limited resources are concerned. The objective at this juncture is to develop a customer base and to introduce people to the potential of technology to improve information flow and enhance the socio-economic environment.

CONCLUSION

The Loughglynn Postmistress, Mrs Anne Coleman, is an enterprising and highly motivated supporter of this venture. The Post Office has been extended to accommodate the new technology and provide private space for users. She is very positive about the potential of these services to transform or, at the very least, enhance the lives of her customers. While there is a necessity to provide more training and support for the participants in the Post Office Project, Anne Coleman’s enthusiasm is infectious and her commitment to the ideals that underpin the project is exemplary.