Pádraic McCormack (Galway West, Fine Gael)
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Question 134: To ask the Minister for Social and Family Affairs if he proposes to proceed with the switching from book to swipe card payment for a number of social welfare payments; if his attention has been drawn to the fact that these proposed changes will result in further marginalisation of social welfare recipients who chose to collect their payments at the post office in cash and that all recipients will have to attend in person to sign for their payments as their payment dockets will not be transferred to their agent to collect on their behalf; his views on whether it will cause hardship to some people that the proposed changes will only mean that the dockets are valid for 20 days while under the old system they were valid for three months and sometimes at Christmas and back to school times where some social welfare recipients used this as a type of saving method, for example, children's allowance dockets are valid for six months and this is also proposed to be reduced; and if he will make a statement on the matter. [5697/08]

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 interests of developing a world-class payments environment in Ireland. In this context, the National Payments Implementation Program Advisory Group, under the aegis of the Department of An 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 at a local post office or to a bank or building society account; 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 Post Office, bank or financial institution. The remaining customers are paid by paper based payment instruments — cheques, post drafts or personal payment order books. The Department is implementing a three-year strategy to change paper based payment instruments to electronic payments at post offices and financial institutions. The programme is being implemented on a phased basis to coincide with book renewal production schedules and as personalised payable order books expire.

Concerns have been raised about the position of customers who use "agents" to collect their payments. The Department is aware of these concerns and have put in place arrangements to continue using book payments in these cases. 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 are underway to inform customers of the change in payment methods and to allay fears and concerns which they may have regarding the use of Social Services Cards to collect their payment at post offices. It should be noted that the use of the Social Services Card will be possible at all post offices.

Excluding agent related customers, all other customers are 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 them. An Post and the Irish Postmaster's Union (IPU) are committed to assisting customers in the use of cards for collecting their payment. 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, Citizens Information Centres and throughout the 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.

Customers, who collect their payment at a post office, will present their Social Services Card and sign for their payment in the normal way. Payments can be collected up to 60 days after the due date in the case of pensioners and up to 100 days for child benefit recipients. Certain other customers have 20 days to collect their payment which is considered to be the optimum time for collection of a weekly means based payment. After these times the payments go out of date and are returned to the Department. Where a payment is not collected in time the Department can be contacted and a replacement payment made as appropriate. An Post has a number of savings products available at post offices which offer customers additional benefits and security.