Dáil Éireann debate -
Thursday, 23 May 1991

Vol. 408 No. 9

Adjournment Debate. - Bank Mail Posted in Britain.

Mr. Allen

I am raising this issue regarding the Bank of Ireland posting monthly Access statements from an English address, Southend-on-Sea. I put it to you, Sir, that this may be in contravention of section 63 of the Postal and Telecommunications Services Act, 1983. I know this statement has been made in the past and the Bank of Ireland have denied that they may be in contravention, but they deny it on the grounds that the material originates in England and, therefore, can be posted in England under the Act. I put it here this evening that I am a card holder and most of my business originates in Ireland. The paperwork is done in Ireland, posted to the Bank of Ireland headquarters in Dublin and then taken by courier to the British computer centre.

I contend the Bank of Ireland is availing of a cheaper postal rate in Great Britain and, as a result of their activities, there is a serious loss of revenue to An Post at a time when An Post are struggling for survival, when there is a threat of 1,500 job losses and the closure of sub-post offices and the possibility of downgrading major offices, for example, in my county in Charleville, Youghal and Clonakilty.

This issue was raised by the Communications Workers Union and by Deputy Toddy O'Sullivan in January 1990. The Bank's response so far has been very poor, especially since the situation is so serious for An Post. I contend the Bank of Ireland are doing very well out of the Irish economy and should act responsibly at a time when An Post are in deep crisis. They are a highly profitable organisation and I say today that the bank's continued failure, despite correspondence between the bank and An Post on re-examining their situation, to respond to date is most unpatriotic. I call on the bank now to cease operating from this English address.

If the Minister is unable to act on this issue then the card holders may act. People like myself can take our own line of action by returning our cards. The bank should adopt a more responsible role; they are being irresponsible. An Post are providing a good service, a social service. It is outrageous that a major Irish bank should act in this way.

Minister of State at the Department of Education (Mr. F. Fahey)

I wish to thank the Deputy for raising this matter as it gives me an opportunity to clarify the situation.

The Deputy's suggestion that the Minister should prevent the Bank of Ireland from using the UK postal system in relation to the despatch of monthly statements relating to credit cards is no doubt based on the assumption that a contravention of Irish legislation is taking place. The Minister has looked into this matter and the Bank of Ireland has given me a report. The bank has informed the Minister that it is one of a number of banks serviced by the Access computer in Southend-on-Sea. As pointed out on an adjournment debate on this subject on 14 December 1989, the computer centre at Southend-on-Sea processes all Access transactions for those banks, produces cards and prints and despatches monthly statements for all the banks, and the statements are posted in accordance with the regulations of the Universal Postal Union.

Under the Postal and Telecommunications Services Act, 1983, it is an offence to take or send outside the State a postal packet with a view to having the packet posted from outside the State to an address within the State to evade the exclusive privilege given by the Act to An Post for the conveyance of postal packets.

The Minister has no evidence that the law is being broken, but if the Deputy has such evidence, he should furnish it to me. The Bank of Ireland also informed me that to enable the bank to have full control over its credit card operation and to provide an improved level of service to its customers, it has decided to develop its own data processing facilities at Cabinteely in relation to credit cards. The Minister understands that these facilities are due for introduction in October 1991. From that date the Bank of Ireland will post all credit card statements from Ireland and not from Southend-on-Sea, as applies at present. The Minister also understands that the new facilities at Cabinteely will give rise to 50 new jobs. As the Deputy will appreciate, An Post will benefit from the new facilities in terms of increased postage revenue. Until such time as that development takes place, there is nothing illegal or improper about the present system.

Mr. Allen

I am glad they are taking a more responsible attitude now.