The Minister for Communications Mr Noel Dempsey today effectively ruled out the provision of a State subsidy to enable local post offices to survive.
The Minister said he held "little hope" that Public Service Obligation (PSO) supports for smaller offices would be introduced by the Government. Mr Dempsey met representatives from the Irish Postmasters' Union (IPU) earlier this afternoon.
The General Secretary of the IPU, Mr John Kane, said although the Minister gave the IPU delegation a sympathetic hearing, the Minister didn't appear to hold out much hope for the introduction of PSO supports.
However, Mr Dempsey did commit to discussing with the Minister for Social and Family Affairs the maximisation of social welfare business being processed through post offices.
"The IPU delegation asked Minister Dempsey to confirm that it remains Government policy to retain the maximum number of post offices in order to preserve the fabric of local communities," said Mr Kane
He said: "While the Minister said that he would examine our proposals, he didn't hold out much hope that they would be proceeded with.
"Unfortunately, if they are not, this will inevitably lead to more post office closures and the loss of vital services to local communities.
"This is why the IPU intends, over the coming months, to engage on this issue with the elected representatives of all parties, as well as social partner groups and the wider public."
However, Mr Kane was more upbeat about the Minister's response to the IPU's request to make representations to the Minister for Social and Family Affairs, Mr Brennan, to maintain as much of the payment of social welfare benefits within the post office network as is possible.
"We explained to the Minister our belief that the Department of Social and Family Affairs is encouraging social welfare recipients to have their benefits paid at banks through electronic transfers, which will deprive the post office of the social welfare payments and have a knock-on effect on 'Billpay' transactions conducted by social welfare recipients at post offices," said Mr Kane.
"In addition, we believe that this move by the Department, if it continues, will considerably increase the incidence of fraud."