IPU calls for Govt action on social welfare contract

The Irish Postmasters’ Union (IPU) has called for Government action to retain social welfare payments at post offices in a bid to prevent the closure of further offices throughout the country.

The IPU, at its annual conference in Mullingar today, launched a position paper on "The importance of the social welfare contract to the post office network'.

IPU General Secretary John Kane said: “The network is currently in rapid decline. There are now 1200 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. The Government is currently reviewing the social welfare contract and has yet to make a decision on a future policy regarding the delivery of payments.

“The welfare payments system accounts for 40% of all income generated at Post Offices. The decline of this business has a ‘double whammy effect’ as a large volume of people who claim social welfare at their Post Office also use the BillPay service on the same visit.”

“As many offices are operating on a very thin margin (the average net income in 2005 was €13,000 per office), decline in social welfare business leaves a large number of Post Offices vulnerable to swift decline and closure,” John Kane said.