Ciarán Cuffe (Dún Laoghaire, Green Party)
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Question 43: To ask the Minister for Social and Family Affairs his views on the claim made by the president of the Irish Postmasters Union that the survival of the country's remaining sub-post offices could be reliant on them continuing to process social welfare payments; and the action which is being taken by his Department to address this matter. [17541/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The Government is committed to maintaining a viable network of post offices throughout the country and my Department is to the forefront in upholding this commitment. In 2005, over 37.8 million payments were issued to social welfare customers through post offices at a cost of EUR47.4 million. At present, 416,000 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. Another 313,000 Child Benefit customers receive their payments by personalised payable order books on a monthly basis at post offices. A further 169,000 customers, mainly on unemployment and one-parent family payments, are paid by means of an electronic or manual postdraft, which is issued to the customer's designated post office each week. The introduction of the Early Childcare Supplement, later this year, will result in some 115,000 customers receiving their Childcare Supplement at their local Post Office on a quarterly basis.

My objective is to ensure that a wide choice of payment options is available to customers of my Department and that service is continually improved by providing access to an increasing range of payment services. Customers opt for a particular payment method. Currently 55% of customers have chosen to receive payment through their local post office, 9% are paid by cheque through the postal system and 36% have chosen to be paid electronically by direct payment to their bank or building society account.

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. In this context, I have initiated a strategic review of my Department's payment requirements with the aim of identifying a payment solution for the future, which will be flexible, cost-effective, customer focused, manageable and accountable. The study, which is ongoing, will take account of current market offerings in the financial services sector and advances in card-based technologies with a view to seeing how future needs might best be met.

I know that An Post is conscious of the need to introduce modern payment systems. My expectation 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 and thus ensure a viable network of post offices serving the needs of local communities throughout the country.

An Post and my Department have been partners in the delivery of social welfare payments since the foundation of the State and there is no reason to believe that An Post and the network of post offices will not continue to play a significant role in the delivery of social welfare payments in the future.