Áine Collins (Cork North West, Fine Gael)
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I ask the Minister for Finance to clarify his plans to move towards processing most of the State's business electronically. This issue arose previously in the context of social welfare payments. It will not be possible to achieve this aim unless all citizens have what is known as a standard bank account. This will only be feasible if An Post establishes a banking system. I have asked An Post to examine this issue but I am somewhat concerned because it has not yet responded to me. The traditional banks are not interested in setting up standard bank accounts and I expect that many of these banks will pull out of rural Ireland over the next several years. With developments in information technology and electronic banking, we will have less access to face-to-face services. We need to have a conversation on who will operate the standard banking system. Given the issues arise in regard to fraud in social welfare and tracing payments, I would like everyone to have a standard bank account through which payments would be processed.

In the context of banks gradually withdrawing services from smaller towns and rural areas, standard accounts are targeted at people who have traditionally dealt in cash and who do most of their business through the post office network. If the Minister is to be successful with his reform package, An Post will have to get its banking act together and facilitate these customers by developing a structure for opening standard bank accounts. This would also make rural post offices more viable and give them a chance to maintain their central role in small towns and rural communities. These post offices are much more than a place to conduct transactions. They are meeting places and focal points for the communities they serve. This is not solely a rural issue, however, because a considerable number of citizens in urban areas are also reluctant to engage with a banking system that is growing ever more aloof.

An Post has not yet replied to my inquiry as to the progress it is making on establishing a banking system. The Government has an opportunity to advance this reform package, while at the same time strengthening the role of post offices in rural Ireland. It is vital that we develop a plan which offers people a lead in time to become aware of their options. Furthermore, if we do not have as many rural banks, issues will arise in respect of access for older people. If older people are able to lodge or withdraw money through An Post, it would be beneficial to them. It is important that we plan for this before it is forced on us.

Tom Hayes (Tipperary South, Fine Gael)
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I apologise on behalf of the Minister for Finance, who is unavailable to respond to the Topical Issues raised by Deputy Áine Collins. The Deputy's suggestion may arise from the recent publication by the Minister of the report on the standard bank account pilot project. That report noted that the view of the stakeholders was that one of the key elements that will have to be part of the preparations for a successful national roll-out of a standard bank account is greater involvement by An Post and the credit unions. The report also noted that An Post and the credit unions are the best possible channel for reaching the target cohorts but pointed out that barriers of existing infrastructure had prohibited this to date.

The financial inclusion working group, which is chaired by the Department of Finance, includes An Post and stakeholders from other Departments, the Central Bank, retail banks, the National Consumer Agency and voluntary sector organisations. The members of the group will work closely together on the finalisation of preparations for the standard bank account, which is expected to be rolled out during 2014.

The role of An Post is one of the issues which will be dealt with in the preparations for the roll-out of the standard bank account. The Deputy will be aware that while An Post is not part of the clearing system operated by the retail banks it none the less provides a range of banking services to those who do not have a bank account, including facilities for paying bills and operating savings accounts. An Post is also the main outlet for the State's various savings schemes, such as post office bonds and savings certificates, and the national solidarity bond. The Deputy will also be aware that in order to mitigate certain AIB branch closures, AIB intends to strengthen its long standing relationship with An Post and at the same time is also launching a new mobile banking service to provide certain banking services to customers in remote locations.

The mobile service will allow customers to make lodgments and withdrawals, pay bills and order foreign exchange.

AIB banking services are available in over 1,100 An Post outlets nationwide. The current services at any An Post outlet allow AIB customers to make cash lodgments for personal and business customers, avail of cash withdrawals up to a certain limit per day, pay their credit cards bills and use any of An Post's own brand services, including bill payments, postal drafts and foreign currency. In addition, AIB plans to build on this successful relationship with An Post and has arranged for additional banking facilitates to be available in over 90 selected outlets. AIB and An Post management are working together at local, regional and national level to ensure the successful launch of this enhanced service. An Post staff will be fully trained to offer this new service in advance of the branch closure dates.

I am satisfied that An Post is providing a valuable service for its customers in the financial services area. However, I am sure it can make an even greater contribution in its involvement in the financial services working group. I hope this involvement will assist in the roll-out of the standard bank account and thus expand the banking services offered by An Post, especially to those with limited access to banking services.

I ask that the report the Joint Committee on Transport and Communications launched in October 2012 also be looked at. It dealt with the future of the post office network across the country and indicated some obvious ways in which the network could be used.

Áine Collins (Cork North West, Fine Gael)
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I thank the Minister of State for his comprehensive reply. It is welcome that the standard bank account will be available in 2014. If we are to be more IT friendly and include rural areas in the process, that is an important step forward. An Post has an important role to play for many reasons. As the Minister of State said, we want to have the standard bank account, the service available in the community and to keep post offices open. The post office is probably one of the last links in rural areas and it is important that we keep them open and make them viable. I am delighted to hear that AIB is strengthening its relationship with An Post. I ask about the other pillar bank in the State. Will there be engagement between An Post and the other banks or will it be left to AIB? Will An Post be part of the clearing system? Is this seen as the way forward to enable it to operate bank accounts or can it operate as it is whereby an AIB customer can use An Post to carry out some of his or her transactions, as the Minister of State mentioned?

Tom Hayes (Tipperary South, Fine Gael)
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The Deputy has made some valuable points. On the issue of the consequences of many shops and Garda stations closing in rural areas, we must look at a model that will keep rural areas alive. The post office network contributes a great deal in that regard and will play a strong role in the future. As I said, in the document the Joint Committee on Transport and Communications published some two years ago on the future of the network, it was indicated An Post would need additional services, of which banking would be part. One needs banks and people need to be able to access money. This impacts on rural areas, whether it be tourism, agriculture or people bringing their children to school. The Deputy's points are well made. I agree that we need such infrastructure. There is no point in allowing the post office network to close down. We must give them something to do and offering banking and financial services would be really good for them. I take the Deputy's point on AIB. I am not aware of the position on other banks. There should be some communication with the banks that are working with businesses in Ireland and such banks should not forget rural areas in this context. If they close down some of their branches in rural areas, like AIB, they should provide services for customers to make them more amenable. On the point made about the clearing system, I will certainly have the issue raised with the officials.