Written answers

Tuesday, 19 April 2005

Department of Social and Family Affairs

Social Welfare Benefits

9:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 105: To ask the Minister for Social and Family Affairs if his Department has research which gives an indication of the number of persons currently receiving payments through methods other than electronic funds transfer, who will change payment methods to EFT; the savings per annum his Department will make by this change of payment method; and if he will make a statement on the matter. [11905/05]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 151: To ask the Minister for Social and Family Affairs when he expects the review of his Department's payment methods to be complete; if the views of social welfare recipients will be taken into account throughout the review process; when he expects the findings of the review to be made available; and if he will make a statement on the matter. [11904/05]

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)
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Question 156: To ask the Minister for Social and Family Affairs the way in which and the person by whom the proposed comprehensive review of his Department's method of payments will be undertaken; if his attention has been drawn to fear among recipients that the review will lead to pressure on them to open bank accounts; if his Department's customers will not be subjected to any undue pressure to opt for bank payments and will not suffer any losses if they do; and if he will make a statement on the matter. [11823/05]

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Question 159: To ask the Minister for Social and Family Affairs the amount paid to An Post by his Department for handling social welfare payments; if he has had any discussion with the Department of Communications, Marine and Natural Resources on the potential impact for the post office system of making payments directly into banks; and if he will make a statement on the matter. [11825/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 105, 151, 156 and 159 together.

In the context of developing my Department's payment delivery systems, there are a number of important elements which must be taken into account. One of these is the fact that a wider range of payment options is now available which provides convenient and flexible access to payments for customers. It is Government policy to facilitate the greater use of electronic payment systems in the economy in the interests of developing a world class payments environment in Ireland.

Current payment methods include payment at post offices by means a pension order books, electronic or manual post draft issued to the customer's designated post office each week, payment by cheque to the home address of customers, and direct payment to customers' bank or building society accounts.

Some 58% of customers currently receive payment through their local post office, 10% are paid by cheque through the postal system — mainly short-term schemes — and 32% receive direct electronic payment through their bank or building society account.

My objective is to ensure that a range of payment options is available to customers and that service is continually improved by providing access to the wide range of payment options and new services and facilities now available.

The main issues which arise in this regard are the large numbers currently paid by non-electronic means, the proportion of customers who do not have access to a bank account and the position of An Post as a major supplier of non-electronic payment services to the Department. It is a matter for each customer to choose whichever payment method is most suited to his or her needs.

The comprehensive review of my Department's payment methods which I announced recently is being undertaken within my Department with some external consultancy assistance. It is envisaged that the review will be completed by the end of this year.

My Department has not undertaken any research on the migration of customers from current payment methods to any new payment method and it would be premature to do so until the review of payment methods is complete. The views of social welfare customers on the likely take-up of different payment methods, both current and into the future, will be taken into account in the context of any future development of payments systems.

As regards to costs, my Department incurs an average cost of €1.24 for each payment made through the post office network which amounts to an annual payment to An Post of in excess of €48 million based on current transactions levels. There is no cost to my Department in respect of direct payments lodged to a customer's bank or building society account.

The increased use of electronic systems opens up possibilities for improved service and greater efficiency in payment delivery generally in the future. I am aware that An Post is actively engaged in considering these possibilities and its future role in this regard.

The Government is committed to maintaining a viable network of post offices throughout the country and the issues involved are under consideration by my colleague, the Minister for Communications, Marine and Natural Resources, who is the Minister responsible for An Post. I have already met my colleague on this matter and I will continue to liaise with him as appropriate.

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