Thomas Pringle (Donegal South West, Independent)
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93. To ask the Minister for Communications, Energy and Natural Resources if he will provide an update on the role his Department has played in promoting greater financial inclusion; his views on establishing a standard bank account in post offices to ensure everyone, especially those on low incomes, have access to financial services relevant to their needs; and if he will make a statement on the matter. [31793/15]

Thomas Pringle (Donegal South West, Independent)
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This question is indirectly related to the previous one. It deals mainly with the Minister of State's role and that of his Department in providing for greater financial inclusion, specifically in the establishment of the standard bank account and the role the post office network can play in the roll-out of that. I wanted to see where that factored into the work the Minister of State's Department is doing.

Joe McHugh (Donegal North East, Fine Gael)
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The Strategy for Financial Inclusion, which is being led by the Department of Finance, called for the nationwide launch of a standard bank account as a first step in promoting financial inclusion. A pilot project for a standard bank account was completed in March 2013 after a nine-month pilot period. A total of 205 accounts were opened during the pilot. The report of the working group on the pilot project noted a number of reasons for the low level of take-up, including the view of stakeholders that one of the key elements required as 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 Department of Finance is currently transposing the payment accounts directive, which requires that all consumers legally resident in the EU must have access to a payment account with basic features, regardless of their financial circumstances. The directive must be transposed by September 2016 and the Department of Finance is considering how to make progress on this issue in light of the experience of the standard bank account pilot project.

The initial report of the post office network business development group was presented to the Minister in May 2015. The report identified the provision of financial services, including those for the unbanked, as fundamental to the future viability of the post office network. There are several advantages in offering basic banking services through the post office network, including the trust factor and the community focus of the network. Successfully aligning these advantages with the provision of suitable basic banking products has the capacity both to support financial inclusion and enhance the role of the post office network.

While it is too early to indicate the contents of the final report, financial services will be an important component of it. I expect the final report to be submitted to the Minister later in the autumn.

Thomas Pringle (Donegal South West, Independent)
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Some 17% of people in Ireland are unbanked and that is why the financial inclusion project was set up. The Minister of State mentioned in his response the pilot project that was run by the Department of Finance. The remarkable thing about that was that An Post was not included in the pilot project. That is why there was such a low uptake of the standard bank account, because people simply did not trust the banks enough to open an account with them. The vast majority of the 17% of people who are unbanked are probably people in receipt of social welfare who use the post office network to get their payments. The fact the post office should be able to have the standard bank account makes perfect sense in terms of financial inclusion and promoting financial inclusion. Unfortunately, the only ones who do not seem to see that are those in Government.

The Minister mentioned the post office development group launched its consultation in May. On the same day it published its six-point consultation, the Department of Social Protection was sending out forms to clients encouraging them to open bank accounts and to move away from the post office. There are different Departments working to different agendas and there is not a united vision across Government in this regard. Unfortunately, that is the role on which the Minister of State's Department is falling down. He must get a grip on it and ensure there is a uniform response right across Government.

Joe McHugh (Donegal North East, Fine Gael)
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To take Deputy Pringle's last point on a uniform response, my confidence lies in the fact that this business development group's report will land not only on the Minister, Deputy White's desk but in front of the Cabinet. It will be subject to discussion by Cabinet which will also discuss acceptance of the proposals. It has to be uniform, united and proactive. Otherwise, there would have been no point doing this in the first place. I am not here to be part of a business development group which is not serious about what it intends doing. There has to be an outcome, be it financial or through Government intervention.

The Deputy referred to trust in banking. Credit unions and post offices are in the community. Those in the banking sector, including many who are retired, would speak of the lack of community engagement today whereas bankers knew their communities 15, 20 or 25 years ago. The credit unions and the post offices know the people in their communities and they are now at an advantage in terms of winning the trust of the public. What we have got to do is build on that.

Thomas Pringle (Donegal South West, Independent)
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No doubt it has to be built on. I would be worried about the commitment of other Departments to build on that, particularly considering the Department of Finance did not even include An Post in the initial roll-out and trial project for the standard bank account and has been dragging its heels on including An Post in it ever since. Given what the Department of Social Protection did on the day the working group published its consultation, how one will achieve that within Government will be key to the success in ensuring financial inclusion is achieved and the post office network is protected and allowed to build and develop. That is the big task the Minister of State has ahead of him.

Joe McHugh (Donegal North East, Fine Gael)
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The Government is committed to the retention of the post offices. That is why we have a business development group and why Mr. Bobby Kerr was appointed. However, there is no point having a group if one does not do anything with it. Mr. Kerr and all the members of the group are intent on putting proposals to Government, because it has to feed back in and those proposals must be tangible. Deputy Pringle is correct that the letters issuing from the Department of Social Protection eroded confidence in the future viability of post offices and created difficulties, and we need to be united. It needs to be a Government approach. The Government commitment is there and it is about following through on the commitment. That can only be done by having proposals, listing them and stating where we will follow through.

That is also subject to procurement. Government cannot provide all these services merely by stating it is providing them. There are difficulties, and the House will be aware of the difficulties that arose with a certain service that is being rolled out at present.