Richard Bruton (Dublin North Central, Fine Gael)
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Question 212: To ask the Minister for Social and Family Affairs if he has considered introducing incentives to encourage people to move to cashless systems of payment and transactions which would bring considerable administrative savings as well as savings in security costs; and his estimate of the savings on administration costs within the public service that would be obtained when a person switches to receive payment electronically. [25676/07]

Martin Cullen (Waterford, Fianna Fail)
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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, the National Payments Implementation Programme Advisory Group, under the aegis of the Department of the Taoiseach, monitors the growth in electronic payments, the reduction in cash transactions and any new payment mechanisms which come on the market. My Department is represented on this group.

The objective of my Department's payment strategy is to ensure that cost effective arrangements are in place for making payments to social welfare customers using a range of payment options and that new payment facilities are made available to customers as they arise. Customers opt for a particular payment method having regard to their own personal circumstances.

Currently some 50% of customers receive their payment electronically direct to their bank or financial institution, or electronically at their local Post Office. The remaining customers are paid by paper based payment instruments — cheques or personal payment order books.

The mix of paper and electronic payment methods in operation, limits the level of savings from electronic payments. The full benefits of these payment types will be achieved as they are rolled out to all customers over the coming years.