Threat to Budget ‘will not save post offices’

THE closure of 159 post offices is to go ahead, despite a threat from an Independent TD to withdraw support from the Government over the issue.

Finance Minister Paschal Donohoe has signalled that the closures will proceed as planned and insisted that the changes are needed to maintain a viable network.

Independent TD Michael Harty has warned that he will not support the Budget if the post offices are closed.

Mr Harty wants a Public Service Obligation (PSO) scheme to help fund rural post offices.

The Government is also under pressure from Fianna Fáil, which is to raise the issue in Budget talks.

The post offices are to close as part of a deal between the Irish Postmasters Union and An Post that was supported by 80pc of IPU members.

Mr Donohoe said that the closures were a “voluntary decision” made by local postmasters and insisted the government has invested funding to support An Post.

He said An Post has had “significant financial difficulties” but the Government is “fully committed” to maintaining a “viable post office network across our entire country”.

Mr Donohoe refused to be drawn on whether he would be open to discussing a PSO for post offices in upcoming Budget talks.

Last night, the IPU thanked postmasters who voluntarily opted to close.

General secretary Ned O’Hara said there was “regret” that any post offices were closing, but the IPU respect the decision of those who opted for an exit package.

Mr O’Hara said the IPU, which has highlighted the challenges faced by the network for years, backed a reform and development plan which “aims to secure as strong a future as possible”.