Paul Gogarty (Dublin Mid West, Green Party)
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Question 47: To ask the Minister for Social and Family Affairs the way in which An Post is expected to improve its services if it is to retain social welfare payments, in view of the fact that his Department has held off on promoting an electronic transfer fund system at local post offices. [23038/05]

Séamus Brennan (Dublin South, Fianna Fail)
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My Department issues approximately 1.1 million weekly payments, of which 58% are paid through An Post. Some 643,000 customers are paid electronically by my Department. Payments can be made by electronic fund transfer direct to a customer's account with a financial institution, including An Post, or by electronic information transfer to a post office where the customer can access the payment by means of a social welfare card.

At present, some 800,000 customers on long-term schemes are paid by means of a book of personalised payable orders which are encashable each week at a post office designated by the customer. 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 services.

I have recently announced a review of my Department's payment methods with a view to identifying a payment solution which will meet the needs of customers in the future while at the same time complying with the Government's e-services agenda. This review, which is under way, will look at all the payment options used by my Department and will seek information on how best to deliver social welfare payments in the future. I expect the review will be completed by the end of the year.

The range and type of services which An Post provides to its customers is, in the first instance, a commercial matter for the company. I have no role or function in this regard. I am aware that An Post is mindful of the need to move to a more modern payment system. My expectation, however, is that An Post will respond to developments and product innovation in the money transmission market so that it can maintain its position as a leading player in this area of commercial activity.

In 1999, my Department's payment delivery arrangements with An Post were extended following a Government decision on the matter. This gave rise to a complaint being lodged with the European Commission in 2000. The complaint was subsequently referred to the European Court of Justice by the European Commission. An undertaking given to the European Commission precludes my Department from entering into any arrangement with An Post which would alter the terms of the current payment delivery service.

Pending a judgment on the complaint, the current arrangements which exist between my Department and An Post for the delivery of social welfare payments will continue.