Seanad debates

Thursday, 2 April 2015

Department of Social Protection Payment Methods: Statements

 

10:30 am

Photo of James HeffernanJames Heffernan (Labour) | Oireachtas source

I thank Senator Reilly for allowing me to contribute at this point. I also thank the Leader who was very quickly on the case when I raised this issue last week. Concern about the post office network and the threat to its long-term viability is one of the issues that is supported by Members from all parties and none.

The Minister of State, Deputy Kevin Humphreys, is aware of the value of the service and social aspect from an inner city perspective. I am from a rural town. The post office network is one of the remaining services in rural towns, especially smaller rural towns. I come from a rural post office in Kilfinane, County Limerick. The bank used to be across the road but it has closed and the nearest bank is a number of miles away. When the bank went, a number of businesses followed because they took their business elsewhere. In many towns in rural areas one is left with very little more than a shell. Anyone who is from outside the main Dublin commuter belt is aware of that. Little goes on in such towns and it is difficult to attract anyone to them. In my area we are trying to fight back. We are trying to develop a tourism product to attract people. We need services such as post offices. We have lost banks, Garda stations, creameries and other businesses that have gone to larger towns. It is difficult in those circumstances to provide any form of employment. The recent issuance of letters undermined the post office network. The closure of post offices would be regrettable due to the effect on rural society in smaller towns and villages.

Reference was made to the social service aspect of post offices. Rural isolation is a major issue. I accept that many recipients of social welfare payments, including old age pensioners, will opt to have their money paid into a bank account. I do not think the Irish Postmasters Union argues against that, as it is the way things are going, but the post office should be able to provide an electronic funds transfer facility. At the moment that service is not provided by the post office network. When older people who come from a town’s hinterland meet on one day of the week, namely, pension day, they generate a buzz in an area. The post office is a great place to meet people, catch up on what is going on, feel part of one's local community and meet people one would not otherwise meet. Some of the letters sent out were a bit over the top. They stated if a person was away on holidays or was unwell, they did not need to worry because their pension would be lodged into their account. This is telling people not to worry, the Department is here to look after them, they can stay inside and watch television but they will not have any human contact. The letter also informed people that the majority of the Department’s customers get their contributory State pension paid directly into their bank accounts.

I concur with Senator Mooney on the €65 million in uncollected payments, such as where a pension recipient passes on, that are returned to the Department. Will this happen in the case of electronic fund transfers? A postmaster or a postmistress will meet welfare recipients day in, day out and will know what is happening.

Senator Naughton raised the issue of the post office advertising its businesses properly. Last week I despaired when I saw one arm of Government undermining the post office network with this mailshot. The Department’s mailshot about electronic payments could be in breach of its contract with An Post.

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