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The post office network will collapse unless state support is provided urgently, according to an independent review by business advisers Grant Thornton.
The report, commissioned by the Irish Postmasters’ Union, recommends an annual public service obligation (PSO) for the postal network of € 17 million.
He says the network continues to provide an economic and social return to communities, well above the PSO requirement.
The report starkly warns of the need for this action to be taken in a few months, as the network “faces significant levels of unrestricted shutdowns by the end of 2021.”
“Ireland’s post office network is at a critical juncture. The financial viability and sustainability of the network are confronted like never before in its history,” the report said.
“Many local post offices, large and small, urban and rural, will probably be forced to close if the financial conditions under which they operate do not change in the short term,” he added.
The report says that PSO models for post office networks are not unusual and have already been introduced in the UK, France, Spain, Belgium, Italy, Finland and Poland with the approval of the European Commission.
The study recommends that Ireland now follow this model.
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