Irish postal operator An Post has announced a ‘breakthrough deal’ with the Irish Postmasters Union (IPU) over plans for a ‘radically modernised’ Post Office network.

Earlier this week, An Post released a statement saying that the deal with its postmasters union comes as it plans to invest €50 million in growing and modernising the Irish post office network.

The deal with the IPU, the postal operator says “more dynamically supports a renewal and development of the Post Office Network and the expansion of new services”.

An Post added: “As part of the strategy for modernising Post Offices, An Post Retail has been established as a dedicated business unit within An Post. An Post Retail has its own management team led by newly appointed MD Debbie Byrne. An Post Retail which will include Post Offices, Bill Pay and Post Insurance manages €14bn of cash annually, more than any other retailer in Ireland, and creates employment for over 3,500 people nationwide.

“An Post Retail’s plans for the future of the Post Office Network include a guarantee that every community will benefit from a modern post office service.

“An Post commits to a post office for every community of over 500 people; within 15km of 95% of the population (and 3km in urban areas).

“While there will be some consolidation to ensure post offices are conveniently and properly located there will be no compulsory closures.”

An Post maintained that the transfer of business to neighbouring offices will “ensure the continued viability of these smaller offices in meeting the needs of the community”.

The company said is looking to “reinvent the post office network” by diversifying and growing financial services products and also making post offices “the backbone of e-commerce” and a “One-Stop-Shop for Government Services”.