Seanad debates

Thursday, 2 April 2015

Department of Social Protection Payment Methods: Statements

 

10:30 am

Photo of Kathryn ReillyKathryn Reilly (Sinn Fein) | Oireachtas source

I welcome the Minister of State to the House. I will keep my contribution brief as much of what I was going to say has been articulated by previous speakers. The core of the discussion relates to the fact that the Department wrote to a number of social welfare recipients encouraging them to have their payments made directly to their bank accounts and making them aware of the option of that facility. Only yesterday, a Minister of State said the Government is undermining its own plan to save post offices, which is concerning. A Grant Thornton report last year highlighted how up to 557 out of 1,550 post offices would close if the social welfare contract was removed from An Post. The letters that were sent, therefore, were concerning for the postmasters, given they are struggling to survive in a difficult environment. The letters caused a great deal of distress for them. If people felt they were being actively encouraged to have payments made to their bank accounts, it would have a negative psychological impact on the postmasters.

Post offices cannot be discussed in isolation without considering other rural services that have suffered over recent years, whether that is Garda stations or small rural schools. Rural post offices are coming under a great deal of pressure and they have been threatened with closure over recent years. Post offices are central to local communities and it is important to ensure the services they provide are protected, given they are a focal point for social interaction. Closures are regarded as increasing the level of isolation and loneliness experienced by people. If that one activity of going to collect a payment is removed, people might find they do not have day-to-day interaction with anyone from end of the week to the other.

We support the retention of local postal services throughout the State and the retention of social welfare payments through them. That is important as part of a wider range of financial services to help ensure their viability. As many Members mentioned, there is a great deal of potential for post offices to provide a range of services to communities and we should not undermine them. It is regrettable that the letters to which I referred issued in the first instance. We should move to give post offices a greater arsenal of functions to serve rural communities. If we do that, it will help their viability and enhance the social fabric of communities not just in rural Ireland but in urban neighbourhoods throughout the State, which also depend on postal services. I thank the Minister of State for attending.

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