Joan Burton (Dublin West, Labour) | Oireachtas source

I am pleased to advise the Deputy that An Post recently became the preferred bidder for the delivery of over-the-counter cash services to Department of Social Protection customers subject to contract agreement.

Last year some 43.7 million payments, or 50% of all payments made by my Department, were issued in cash through An Post's network of 1,152 post offices nationwide. I am very anxious to highlight the significance of the expenditure in local economies, in every town, city and village. Although negotiations remain to be concluded, An Post's selection as preferred bidder for the new contract will continue to contribute to the vibrancy of both the rural and urban economies. However, at this juncture, An Post does not provide a standard bank account. The Department of Social Protection is a key player in the payment services sector, with over 87 million payments issued to customers in 2012. It envisages an environment in which social welfare payments delivered to customers will ultimately provide an electronic option for everyone. This goal is in line with wider Government policies.

It is noted in the strategy for financial inclusion report that the post office network has the potential to play a key role in the delivery of standard bank accounts. As the roll-out of the standard bank account is being driven by the Department of Finance, it will be a matter for that Department and my colleague, the Minister for Finance, Deputy Michael Noonan, to work with all potential providers, including An Post, in the coming months to optimise the nationwide availability of the standard bank account.

Additional information not given on the floor of the House

Supporting achievement of financial inclusion for customers is of fundamental importance to the Department. In this respect, it is working with the financial inclusion working group established by the Department of Finance to support access to the new standard bank account. The Department's payment strategy is contingent on the roll-out of the standard bank account. The combination of the national payments plan, the standard bank account and the Department's payment strategy can, as three interdependent initiatives, realise tangible benefits in delivering a more efficient payments landscape and grow opportunities and benefits for consumers and business alike in the medium term. My Department will continue to work with the Department of Finance and the financial inclusion working group to progress the roll-out of the standard bank account.

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