Vol. 430 No. 2
224 Ms McManus asked the Minister for Transport, Energy and Communications if his attention has been drawn to the negative effects that will be caused to the postoffice network in rural areas in view of the policy to transfer social welfare recipient payments from post offices to banks; and his views as to whether this privatisation of social welfare will have serious consequences for the future of small rural offices and rural communities.
In keeping with his policy of improving service to social welfare customers and introducing an element of choice in payment methods, the Minister for Social Welfare recently offered a direct credit facility to old age contributory and retirement pensioners under which they could voluntarily opt to have their pensions paid into a bank or postoffice savings account if it suited them. I understand that, to date, about 5,400 people have opted for this new method of payment, which will become available next month. The remaining pensioners will continue to have their pensions paid at postoffices.
An Post is the main agency for payment of social welfare customers. This role has now been underpinned and strengthened by the completion of a comprehensive services agreement between the Department of Social Welfare and An Post.
The introduction of alternative payment facilties for pensioners must be viewed in the context of the new agreement under which it is envisaged that there will be an expansion of the overall level of social welfare business that will be carried out at postoffices.
I understand from An Post that the introduction of direct credit payment facilities for pensioners will not have any serious consequences for the rural post office network.
