Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 273: To ask the Minister for Social and Family Affairs his plans to introduce the payment of social welfare benefits through electronic fund transfer; the consultation taking place to facilitate the introduction of such a system; and if he will make a statement on the matter. [5525/08]

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 interest of developing a world-class payment environment in Ireland. In this context, the National Payments Implementation Program 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 current range of payment options offered by my Department to customers includes payment to a bank or building society account, a local post office or certain credit unions that have been authorised by the banking and credit union regulators. 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 Post Office. The remaining customers are paid by paper-based payment instruments — cheques, post drafts or personal payment order books. My Department is implementing a three-year strategy to change paper-based payment instruments to electronic payments at financial institutions and Post Offices. The programme is being implemented on a phased basis to coincide with book renewal production schedules and as personalised payable order books expire. 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 become available.

A range of measures is under way to inform customers of the change in payment methods and to allay fears and concerns which they may have regarding and the use of Social Services Cards to collect their payment at Post Offices. Each customer is being informed by letter of the change in their payment arrangement. A Social Services Card, along with a covering letter explaining how to use the card, is being issued to each customer. An Post and the Irish Postmaster's Union (IPU) are committed to assisting customers in the use of cards for collecting their payments. Groups representing the elderly and disabled have already been consulted and have indicated that they will support the move to electronic payments at Post Offices.

Posters will be displayed in all Post Offices and Citizens' Information Centres and throughout my Department's local office network. In addition, the change from paper to electronic payment will be a key element of all public information events, seminars and information briefings being carried by my Department in the coming year. I am confident that the planned range of measures to inform customers of the change to electronic payment will ensure a smooth transition for them.