Postmasters seek suspension of transfer to electronic welfare payments
With the Department of Social Protection moving towards the elimination of cash payments by 2017, the Irish Postmasters’ Union wants the post offices to play a role in how the electronic transfers are managed.
It says 50% of current welfare transactions take place via cash payment and overall that activity accounts for 30% of post office business. The union pointed to a recent Grant Thornton report which concluded that the move to electronic transfer would result in 550 of the country’s 1,100 post offices closing.
Brian McGann, general secretary of the union, said it recognises that electronic transfer is a modern medium of choice for many consumers and organisations.
However, he said a specific plan needs to be developed which modernises how welfare payments are paid and in parallel modernises how post offices provide services by making them “part of the solution and electronic future”.
Making the call to suspend electronic transfer, he said a likely solution would be the development of “a full banking service through the post office”.
The union recommended the establishment of a working group to report within an agreed timeframe.
It is also calling on the Government to give priority to its proposal to provide motor tax renewal through post offices. It will raise the issues when it meets with Communications Minister Pat Rabbitte today.
It said other issues it will be raising include:
* Exploring the possibility of providing insurance advice services through post offices following An Post’s acquisition of Aviva;
* Asking the minister to instruct An Post to pull back from talks with Tesco and other multiples regarding services which is “unacceptable to postmasters”;
* The appointment of a facilitator to establish an appropriate mechanism to resolve issues between An Post and postmasters.
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