Cecilia Keaveney (Donegal North East, Fianna Fail)
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Question 277: To ask the Minister for Communications, Marine and Natural Resources his views on requests (details supplied) made by the Irish Postmasters Union; and if he will make a statement on the matter. [23525/05]

Noel Dempsey (Meath, Fianna Fail)
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The Government and the board of An Post are committed to the objective of securing a viable and sustainable rural post office network as set out in the programme for Government. The overarching objective continues to be the retention of post office services in as many locations as possible in the manner which best meets consumer needs whether services are provided via post offices, postal agencies or the Postpoint network. I would like to outline my commitment and that of the Minister for Social and Family Affairs, Deputy Brennan, to the post office network. This has been demonstrated in meetings with interested parties, including my meetings and those of the Minister for Social and Family Affairs with the IPU.

I reiterate my view and that of my colleague, Deputy Brennan that we want to see An Post delivering social welfare payments to the maximum number of people. Quality customer services, however, mean that people must be allowed to choose their preferred method of payment. An Post has commenced work on a new business model for the post office network that will involve a substantial upgrade of information technology systems to offer electronic funds transfer functionality to social welfare recipients and a wider suite of financial and other services to new and existing customers. Pending progress on the system upgrades, I have agreed with the Minister for Social and Family Affairs that, for the moment, all payment options will receive equal standing on social welfare forms and that the Department of Social and Family Affairs will not actively push EFT for social welfare clients.

On the issue of upgrading post offices, the automation of the network was completed in 1997 and it has only been in very exceptional circumstances, such as an existing automated office closing and its equipment being transferred to a suitable neighbouring location that transacts significant volumes of welfare business, that further offices were automated since then. However, I am convinced that An Post's long-term strategy must satisfactorily address electronic technology in a comprehensive fashion. In the interim, a pilot project will see ten small post offices computerised. In a separate initiative, the company, in conjunction with the Department of Community, Rural and Gaeltacht Affairs, is working on an initiative to automate nine island post offices. As many strands of the upgrade strategy are being advanced, I have informed the IPU that a meeting at this stage would not add much to the process but I have undertaken to keep it informed on this issue.