Shane McEntee (Meath, Fine Gael)
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Question 24: To ask the Minister for Social and Family Affairs when he expects social welfare recipients to be able to receive their payments in credit union accounts; and if he will make a statement on the matter. [22931/05]

Séamus Brennan (Dublin South, Fianna Fail)
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My objective is to ensure that a wide choice of payment options is available to customers and that service is continually improved by providing access to an increasing range of payment outlets and facilities. Currently, 520,000 of my Department's customers receive their payment direct to their accounts at banks, building societies and other financial institutions. In order for my Department to issue payments to an account, the financial institution must have access to the electronic clearing system. Credit unions do not have access to these facilities at present and, therefore, cannot receive direct payments from my Department.

I am aware that the Irish League of Credit Unions is currently working with Bank of Ireland to develop a solution which would give credit unions access to the electronic clearing system. Development work is at an advanced stage and my Department has been requested to assist with the testing of the solution by issuing trial payments. Development work is ongoing between the bank and the credit unions and my Department will continue to assist with the testing of the system as requested.

When regulatory approval is obtained and all parties are satisfied that payments can reach the nominated account securely and on time, and that the customer can easily access their payment on the due date, my Department will agree a commencement date for the service with the Irish League of Credit Unions.

As the development and the regulatory issues are outside the control of my Department it is not possible to set a timeframe by which payments to credit union accounts will take place. However, I am hopeful that most of the issues can be finalised by the end of the year and that social welfare customers will be able to receive their payments in credit union accounts thereafter.