Written answers

Tuesday, 16 June 2015

Department of Social Protection

Post Office Network

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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168. To ask the Minister for Social Protection her plans to withdraw the new social protection forms which recommend payment through banks and discourage use of the post office, in view of the fact the new forms show a complete disregard for the commercial future of post offices, which are a trusted and valued part of everyday life; and if she will make a statement on the matter. [23103/15]

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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172. To ask the Minister for Social Protection her plans to withdraw and redraft her Department's new forms that encourage persons on social protection payments, now or in the future, to move from accessing their payments through the post office network to direct payment to a bank account; if she accepts the legitimate concern not only of those represented by the Irish Postmasters' Union but by elected and community voices, especially in rural areas, at the potential negative impact of this encouragement on the viability of many rural post offices; and if she will make a statement on the matter. [23111/15]

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
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178. To ask the Minister for Social Protection her plans to revise her Department's prioritising of the use of bank accounts for electronic payments over post office accounts; and if she will make a statement on the matter. [23181/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 168, 172 and 178 together.

Successive Governments and this one most notably, have consistently stated their commitment to maintaining the post office network as set out in the Programme for Government. The post office is seen as a key piece of financial and social infrastructure for both urban and rural areas. Part of the strength of the post office brand, and one of its chief selling points, is that it reaches all parts of the country and can be assessed by anyone. It is Government policy that An Post remains a strong and viable company in a position to provide a high quality postal service and maintain a nationwide customer focussed network of post offices in the community.

My Department’s continuing support for An Post is apparent, both in terms of the cost of postage services and the value of the contract for welfare payments. In this regard, we anticipate this year that we will pay over €50 million to An Post under a contract for cash payment services to welfare customers. This contract is very substantial in terms of its reach, value and impact.

As you are aware my colleague the Minister for Communications, Energy and Natural Resources, Mr Alex White, T.D., formally launched the Post Office Network Business Development Group under the independent Chairmanship of Mr Bobby Kerr in February, 2015 to explore potential commercial opportunities available to the post office network. I look forward viewing the report from this Group.

I understand An Post is anxious to grow its existing levels of services in the light of emerging market pressures which extend beyond the delivery of welfare payments. In this context I am pleased to note An Post has tendered for the provision of a new payment and transaction account. I look forward to that becoming available in the not too distant future as it will provide alternative payment opportunities for my Department’s customers.

In order to recognise the general societal trend to electronic payments the Department has been changing some of its application forms. The option to be paid at the post office remains on the forms.

I want to emphasise that the amendments do not remove the option to be paid at the post office. This option still remains on the forms. Therefore, customers are free to opt to receive their payment at the post office if they wish.

The Department is conscious of the important role of the post office around the country, not only in respect of social welfare payments but also in offering other financial services such as paying bills and carrying out a range of banking services. The Government has consistently stated its commitment to maintaining the post office network as set out in the Programme for Government.

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