Brian O'Shea (Waterford, Labour)
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Question 164: To ask the Minister for Social and Family Affairs his proposals to deal with the concerns of a person (details supplied) in County Cork regarding the future of the postal network; and if he will make a statement on the matter. [13825/05]

Séamus Brennan (Dublin South, Fianna Fail)
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Four of the five points raised by the person concerned in the circular type letter received by the Deputy concern matters which are the responsibility of my colleague, the Minister for Communications, Marine and Natural Resources. The other point relates to allegations that my Department is forcing its customers to change from payment at post offices to direct payment into bank accounts.

The position is that social welfare customers opting for a particular payment method do so on an entirely voluntary basis having regard to their own circumstances and particular needs. This is in line with our policy of ensuring 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.

Current payment methods include payment at post offices by means of a pension order book, 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 by electronic fund transfer. Where possible, my Department provides a payment option which best suits the needs of customers.

Some 58% of customers currently receive payment through their local post office, comprising 800,000 customers on longer term schemes who have chosen to be paid by a book of personalised payable orders encashable each week at the customers' designated post office, and a further 135,000 customers, mainly on unemployment schemes, who are paid at their designated post office by electronic or manual post draft each week. Some 11% or 160,000 customers are paid by cheque through the postal system and 31% or 500,000 customers receive direct electronic payment to their bank or building society account.

By way of illustration, some 66% of new applicants for old age contributory pension and 65% of new applicants for child benefit have chosen to be paid directly to their bank accounts. In late 2003, customers getting family income supplement were transferred to a new payment system. These customers are at work on low pay and many already had their salaries or wages paid into their bank accounts. It suited their needs, therefore, to have their family income supplement paid in the same manner. Currently 84% of those customers are paid by direct payment.