(Dublin Central) asked the Minister for Posts and Telegraphs if it is his intention to establish a Post Office Giro system.
Ceisteanna—Questions. Oral Answers. - PO Giro System.
8.
The Giro system involves the provision by the Post Office of a current account banking service with cheque facilities. In considering whether the system should be introduced here essential questions would be whether the service would be desirable in order to supplement the existing banking and remittance services and whether the heavy costs of establishing and operating the service would be warranted. British experience, which we have been watching carefully, suggests that public support for the service would be slow and that the service would not pay its way for many years. Before any decision could be taken, through research and analysis would be necessary to assess the potential for the service, the associated costs and benefits to the community, the Exchequer and the Post Office and the wider policy implications. Many of these important issues are outside the purview of my Department, and the matter is not one on which an early decision is practicable.
Would the Minister agree that, due to the recent bank strike, some alternative banking system is desirable? Would he further agree that the system is working very satisfactorily in the United Kingdom and in other European countries, and would he carry out a survey to see how they are operating their systems?
The question whether such a service is needed to supplement the existing banking and transfer services is primarily one for the Department of Finance. As regards the question of how satisfactory the British experience has been, the British experience does suggest that the launching of Giro would be expensive, that the growth of public support could be slow, and that the service would be unprofitable to the Post Office for many years at least. If, however, the Department of Finance decide that this service is necessary, then my Department will co-operate with that Department.