A report on Ireland's post office network has concluded that its future lies in providing more financial services.
The Post Office Network Business Development Group, which compiled the report, recommended that less viable post offices become hubs for business and social activities in their areas.
Group Chairman Bobby Kerr also recommended that new services such as the sale of motor tax discs need to be rolled out at post offices.
The report notes that the two main income streams for the network come from the welfare contract with the Department of Social Protection and the savings and financial services contract with the NTMA.
The group recognises that the move towards electronic payments by Government departments represents a significant threat.
But with 48% of post offices carrying out only 12% of the network's business, the report says An Post must review its five-year strategic plan in consultation with The Irish Postmasters' Union.
The report found that An Post needs to develop its own portfolio of financial products and services over which it could maintain greater influence than third-party services if it is to maintain market share.
The union said the report showed the depth of the crisis facing the network and urged An Post to set up an independent working group to review its five-year strategy without delay.
Reacting to the report, the General Secretary of the Irish Postmasters' Union said postmasters recognise the need to modernise, but their social contribution to rural areas needs to be recognised.
Speaking on RTÉ's Drivetime, Ned O'Hara said that he broadly welcomed today's report and would like the Government and any incoming government to cooperate with the union and not play political football.
He urged the Government to immediately get involved in the review of its five-year strategic plan.
Mr O'Hara said postmasters recognise the value of e-payments, but said electronic payments need to correspond with the proper services and products.
He said it is a possibility that some post offices will have to close.
