Joan Burton (Dublin West, Labour) | Oireachtas source

I emphasise that the forms provided by the Department to enable customers to apply for social welfare entitlements are continuously reviewed to ensure they are amenable, relevant and understandable to all customers. In this context, the Department considers that the forms should reflect the choices being made by new customers - the forms in question relate to new customers - on what payment channel they opt for. The fact is that more and more of the Department's customers are opting for payment of their social welfare entitlements directly into their bank accounts, particularly people who are retiring on a contributory pension who already have bank accounts and typically received their wages or salary through their bank accounts. Almost always, they want to continue the bank account arrangement.

To ensure that the Department's forms present payment options equally I have asked the Department to update them to ensure that a neutral wording in respect of payment options is provided and to ensure that one payment option is not favoured over another.

The Government has consistently stated its commitment to maintaining the post office network. It is clear in the programme for Government. It is a key piece of social infrastructure in urban and rural areas. It is Government policy that An Post will remain a strong and feasible company in a position to provide a high-quality postal service that will maintain a nationwide customer-focused network of post offices in the community.

My Department relies on An Post to provide a payment service for people who do not have a bank account. I cannot emphasise that enough. The Department is heavily reliant on An Post. This, in turn, provides An Post and post offices throughout the country with some valuable business. For example, we are paying An Post approximately €54 million this year for services, a significant sum of money and a vital source of income for post offices throughout the country. That is our commitment to the network.

Additional information not given on the floor of the House

The post office network business development group, chaired by 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 post office network. The development by An Post of a payment account will be critical to a more sustainable business model as society inexorably moves to electronic rather than cash payments. The post office network cannot remain reliant on an income stream from my Department for cash payments to its clients where an increasing number of social welfare recipients wish to receive payments to their bank accounts.

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