Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

I thank the Deputy for raising this matter. He was right about the number of post offices that had closed. I have just noticed in my notes that 198 post offices closed between 2007 and 2010.

I reassure the Deputy that the Government has consistently stated its commitment to maintaining the post office network, as is clear in the programme for Government. It is a key piece of the social infrastructure in urban and rural areas. A part of the strength of the post office brand and one of its chief selling points is that it reaches all parts of the country and can be accessed by everyone. In particular, we support the concept of the post office as a front office of government, in other words, a way by which an array of State services can be delivered.

In that regard, the Department of Social Protection contract is the single most important contract for An Post. Under it, my Department will pay more than €50 million to An Post this year for cash payment services to welfare clients. This is a significant sum and a vital source of business for post offices around the country. This indicates our commitment to the network.

The Post Office Network Business Development Group, chaired by Mr. Bobby Kerr, has decided that the future of the post office will be best secured through the development of a more sustainable business model, including the development of financial services, which is identified by the group as fundamental to the future of the network. The development by An Post of a payment account will be critical to a more sustainable business model as society moves to electronic payments rather than cash payments, for example, standard bank accounts. This approach was mentioned in Mr. Kerr's report and An Post is excited about developing it.

Concerns have been raised recently regarding the format of some of the Department's scheme application forms and how they may impact on the post office network. I assure the House that these application forms do not remove the option for clients to be paid at the post office. This option still remains on the forms and clients can continue to receive their payments at post offices if they so wish. Some of these forms were amended in the past year to recognise the general societal trend towards electronic payments.

I emphasise that the forms provided by the Department to enable clients to apply for social welfare entitlements are continuously reviewed to ensure that they are amenable and relevant to all clients. However, in order to ensure that the Department's forms present payment options equally, I have asked it to update them to contain neutral wording in respect of payment options so that one option is not favoured over another. Changing the wording will take a bit of time.

I assure the Deputy that current payment options will remain in place in order to reflect the different circumstances and needs of our clients, as has always been the case, and in the interest of serving our clients in the best way possible.

Like the Deputy, I am from an urban area where post offices are as valued as they are in rural ones, but we must change the business model and work with An Post to do so. I am sure that the Deputy has friends and acquaintances who have retired and who, having received their salaries by way of electronic payment, will opt for the electronic payment of their pensions. We must work with An Post with a view to a more sustainable financial model. The Deputy may have read today about-----

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