Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

The introduction of electronic payments for the social welfare system is primarily the responsibility of my colleague, the Minister for Social Protection, as part of the payments strategy for her Department. In that regard, I have acknowledged that a move to e-payments will help to underpin national competitiveness. Indeed, the switch to electronic payments for social welfare transactions is a trend that has been apparent for some time with most new social welfare clients using electric funds transfer methods of payment.

As Minister for Communications, Energy and Natural Resources, I am keen to see the development of an e-commerce and digital economy. Social welfare clients should have the same opportunities to avail of the benefits of the digital economy as the rest of us.

An Post has many strengths such as the largest retail presence in the country, a strong brand and a fully computerised network. Post offices already undertake e-payment transactions and, in common with other retail networks, this trend will accelerate in coming years.

The Department of Social Protection payment strategy intends to implement a strategy whereby the bulk of social welfare payments will be made electronically. I understand An Post will pitch strongly for the social welfare e-payment business when it is put out to tender by the Department of Social Protection.

I have welcomed the recent selection of An Post as the provider of over the counter cash services for social welfare customers. The social welfare contract is the largest contract held by the post office division of An Post. The move to make social welfare payments electronically will clearly pose challenges for the network both in terms of changes to how business is conducted at the counters and the value of the contract in an electronic payments environment. Addressing these challenges is primarily a matter for the management and board of An Post as part of developing a strategy to secure the future of the network.

As Minister for Communications, Energy and Natural Resources, I see a strong future for the network by using its existing strengths to remain a significant player as a front office for Government services, including those provided by the Department of Social Protection.

See this speech in context