Michael Lowry (Tipperary North, Independent)
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Question 250: To ask the Minister for Social and Family Affairs if she will allow pension recipients to continue to receive their pensions by means of pension book through their nominated post office and that she will not make it compulsory for pensioners to opt for either direct payment into a bank account or alternatively by means of swipe card in view of the fact that many older pensioners do not hold a bank account and request family members to collect their payment in the post office if they are unable to call in person to collect same themselves; and if she will make a statement on the matter. [21234/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Department supports government policy which aims to facilitate the greater use of electronic payment systems in the economy in the interests of developing a world class payments environment in Ireland. Our payment strategy is designed to ensure that cost effective arrangements are in place for making payments to social welfare customers by using a range of payment options and to ensure that new payment facilities are made available to customers as they arise.

The Department is implementing a three year strategy to change paper based payment instruments to electronic payments at post offices, banks and other financial institutions on a phased basis. Currently some 74% of customers receive their payment electronically direct to their post office or financial institution.

A range of measures are underway to inform customers of the change in payment methods and to address any concerns they may have regarding the use of the social services card to collect their payment at post offices.

Each person is being informed by personal letter of the change in their payment arrangement. A social services card, along with a covering letter explaining how to use the card, is also being issued to them. Posters are being displayed in all post offices, citizen's information centres and throughout the Department's local office network.

For those customers who cannot collect their payment in person, the Department has arrangements in place to allow a nominated person collect their payment using a Social Services Card.

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.