Many people running local post offices are quitting their businesses because they can no longer afford to run them, a union representing postal workers has claimed.
John Kane, Irish Postmasters' Union
The Irish Postmasters' Union (IPU) told the Joint Oireachtas Committee on Communications, Marine and Natural Resources this afternoon that the "absence" of a Government policy on the post network means the "haemorrhaging of postmasters and postmistresses out of the system is being allowed to continue unchecked".
It also said the retention of the Government contract for social welfare payments is crucial to the survival of the network. A recent European Court ruling means the contract held by An Post will have to be put out to tender.
John Kane, general secretary of the union, which represents about 1,300 post offices across the country, said: "The absence, or at the very least the vagueness of Government policy in relation to the post office network has meant that 450 offices have closed down in the last four years with hundreds more earmarked for closure over the next few years.
"Our members' incomes are falling all of the time and members are finding it increasingly difficult to make ends meet. This is happening because of a variety of factors. Staff costs, new security measures and requirements, rising accommodation costs and competitive pressures are all contributing to this unsustainable situation," he said.
"We estimate that it costs approximately €207,000 per annum to run a large-sized sub post office and around €53,000 to operate a standard sized office.
"Increasingly, individual postmasters and postmistresses are taking the hit for these costs, while others who can no longer sustain the burden are leaving the business altogether, albeit with poor severance packages and relatively little to show for their years of commitment and loyalty," Mr Kane said.
He warned that post offices are "very much dependent" on Government business, which represents 75 per cent of all transactions at sub-post offices.