Dáil Éireann debate -
Thursday, 20 Jun 1996

Vol. 467 No. 3

Written Answers. - Social Welfare Benefits.

Liz O'Donnell

Question:

16 Ms O'Donnell asked the Minister for Social Welfare the plans, if any, he has for an alternative system of paying social welfare to recipients in view of the recent increase in the number of An Post robberies and in order to avoid the transportation of large amounts of cash; and if he will make a statement on the matter. [13060/96]

Minister for Social Welfare (Proinsias De Rossa)

In recent years my Department has introduced a number of new payment methods and options for social welfare customers. My intention is to continue this process to ensure that the most modern and the widest range of payment methods are available for people.

An Post is currently the principal agency through which payments are delivered to social welfare customers. Each week An Post delivers an average of 872,000 payments with a total value of £52.37 million to social welfare customers. An Post liaises closely with An Garda Síochána in relation to the security of its cash transit operations and arrangements.

Payment by way of cheque is available for certain schemes, principally for people claiming disability benefit and for some unemployed people.

Electronic funds transfer, which enables payment to be made by direct credit to personal accounts at An Post, banks and certain other financial institutions, is available across a number of social welfare schemes, including child benefit, pensions, unemployment and sickness schemes. Currently some 88,900 people are availing of this option and some 25 per cent of all new child benefit and 16 per cent of all new pensions customers opt for this method of payment.

New technologies and cashless money transmission facilities which are now coming on stream are being examined by my Department with a view to further expanding the range of payment methods from which customers may choose. In this context, exploratory discussions have been held with the banks and others to establish the role, if any, which the cashless payment methods can play in the delivery of social welfare payments.

My Department has also had exploratory discussions with the credit union movement with a view to extending an electronic payment option to their members. A number of issues of a banking, technical and administrative nature have been identified and need to be resolved before this option will become available.

The Deputy will understand that, by and large, we still live in a cash-based society and people must have ready access to cash, particularly to meet their day to day needs. This requirement is not unique to social welfare customers, it applies to society in general. Consequently, movements of bulk cash are unavoidable at present. However, every opportunity to reduce the volume of cash which must be transferred in bulk to meet the needs of social welfare customers is examined and is availed of, where practicable.