Future of post offices depends on social welfare contract

THE future of the post office network depends on the retention of social welfare payments at all outlets, postmasters warned yesterday.

With 500 post offices closing in the past few years, the Irish Postmasters’ Union has called for Government action to ensure the €50 million-plus social welfare contract remains with An Post. A position paper on the importance of social welfare payments to the post office network was outlined at the IPU’s annual conference in Mullingar yesterday.

IPU general secretary John Kane said: “The network is in rapid decline. There are now 1,200 post offices following 500 closures in the past eight years, and the stark fact is that the future of there being a localised network depends on the retention of social welfare business.” The share of the social welfare contract handled by post offices has declined from 80% in 1998 to 55% in 2005, as people have been encouraged to have payments paid directly into their bank accounts.