The Government is expected to accept calls in the Dáil by Independent TDs for the safeguarding of post offices and the introduction of an An Post-run community banking service.

The decision to accept was inevitable after Fianna Fáil made clear it would support the motion, which also calls for An Post to supply all of the State's over-the-counter services through post offices.

A working group should be set up to see what other services dealing with health, transport or agriculture could be supplied through rural post offices, the Dáil motion advocated.

To be debated on Wednesday, it is signed by Independent TDs Michael Healy-Rae, Danny Healy-Rae, Mattie McGrath, Michael Collins, Noel Grealish, Michael Harty and Michael Lowry.

Meanwhile, 16 post offices that handled 0.2 per cent of An Post’s business have been closed over the last two years, but 700 are financially unsustainable, a senior An Post executive has told told TDs.

Final recommendations from a review led by businessman Bobby Kerr on the future on An Post's network are due in coming weeks, said An Post's retail operation director John Daly.

Rural areas

The recommendations are expected to include some measures to protect rural post offices: “His recommendations will be dependent on Government support for rural post offices if they are to survive into the future,’’ he cautioned.

The semi-State has not had a policy of closing post offices, Mr Daly told the Oireachtas committee on rural affairs, though the viability of a post office was examined if the postmaster retired or died.

Consultations always took place with locals if closure is considered: “The submissions received to date range from no submissions at all to significant levels of interest.”

The 16 offices closed represent 1.4 per cent of the network and handled just one-fifth of 1 per cent of the company’s business at a time when An Post saw its revenues fall by 11 per cent.

Seven hundred post offices, about two-thirds of the network, are financially unsustainable, Mr Daly said, though the Kerr review is examining other services that could be handled by them.

Much of the network was developed when Ireland was a very different place andhas not been immune to huge social and economic changes.

Commercial entities

“The company supports initiatives on supporting rural communities but is of the view that it is an issue for Government and the local communities themselves rather than commercial entities such as An Post,’’ he said.

“Our extensive range of services can continue to be provided in rural communities as long as a sustainable business model can be found,” he said.

“More and more citizens are choosing to do their business online or through bank accounts or mobile phones,’’ he said.

“They also pass many local shops to do their shopping at large shopping centres and towns.’’

An Post handles bill payment and banking services for major organisations, the provision of social welfare payments, savings, foreign exchange and retail products such as post mobile and gift vouchers.

The company’s analysis showed that over 99 per cent of addresses in the State were within 10km of a post office and 93 per cent were within 5km of one.

Some 120 million transactions were handled annually, while 1.7 million customers visited post offices weekly – but the business is operating in an increasingly difficult climate.

Postal traffic

Mail traffic has declined here, like elsewhere, because of the growth of email and other electronic means.

Since March 2014, mail traffic has fallen 11 per cent, but it is down 38 per cent since the peak of mail in 2007.

“We have seen growth in online shopping which has, to a small extent, increased the level of our parcels business,’’ Mr Daly added.

“This is a growth area we intend to pursue but it must be noted that this business is very price-competitive.’’

More social welfare recipients are having their payments made electronically. In March 2014, An Post had over 750,000 such customers. Today, the number is down 17 per cent to 625,000 customers.

This was caused first by a decline of 30 per cent in the number of jobseeker payments.

There was a reduction of 5 per cent in pension payments due to the very low number of new pensioners choosing the post office option for their payments, he added.

Child benefit payments had declined by 16 per cent, he said.