Loss of social welfare contract would half number of post offices

UP to 20 post offices in the county would be threatened with closure if An Post loses its contract with the Department of Social Protection to distribute social welfare payments.
That was the warning delivered by Irish Postmasters’ Union National Executive member Tom O’Callaghan at a meeting of Clare County Council on Monday.
Mr O’Callaghan, who is from Kildysart, warned councillors that up to 20 post offices, half the network in the county, would close as they depend heavily on social welfare transactions for their existence.
“There is a second tender due this month that is designed to end cash transactions where social welfare payments are concerned,” he explained.
Rural communities have been hit by the closure of 20 post offices over the last decade. Five offices in Mullagh, Inagh, Kilnaboy, Kilbaha and Clonlara shut their doors in 2003; Carron closed in 2004, Liscannor and Kilnamona ceased operations in 2006, followed by a plethora of closures as part of the exit scheme in 2007. These included Kilmaley, Crusheen, Bodyke, Dunsallagh, Kilmurry, Spanish Point, Maurices Mills and O’Callaghan’s Mills. Mountshannon, Belharbour, Ballynacally and Ruan closed in 2009. A year later, Flagmount, Connolly and Tubber Post Offices ceased trading.
While some low-volume post offices have closed in Clare, An Post spokeswoman Anna McHugh pointed out the transfer of their business boosted transaction levels in neighbouring offices.   
She noted in eight locations throughout the county a postal agency was put in place after the closure of the office. A postal agent can pay out welfare and sell stamps on behalf of An Post, services which would have made up the bulk of the original office’s transactions. 
Mr O’Callaghan stressed more business, such as motor tax, must also be driven by Government through the post office network to ensure their sustainability.
“There is no reason why post offices can’t process renewals like we do passport applications and the discs would continue to be issued by Shannon. The postmaster would scan a barcode on the application form and ask the customer questions as required. The customer would provide the insurance policy details and payment and with one click the postmaster would send it to Shannon. An Post is willing to fund all internal development costs.
“International consultants Grant Thornton confirmed in a report that the Irish taxpayer could save €60.6m over five years if motor tax renewals were routed through the post office.”
Mr O’Callaghan said this is just one of a number of proposals the Irish Postmasters’ Union has put to Government ministers in detailed discussions, which are ongoing.
Other proposals include the register of electors, water charge payments, rent payments to local authorities, credit union transactions, welfare electronic signing on facilities, SME monthly income tax payment services and additional banking transactions and hospital charges.
Deputy Pat Breen has written to Social Protection Minister Joan Burton about the impact the possible ending of the department’s partnership with An Post would have.
He stated the use of online technology is limited in rural Clare, with significant areas of the county still without broadband. 
“According to the 2011 CSO Census, only 58% of households in Clare have access to broadband compared to 63.8% nationally. The fact is that many elderly people prefer the one-to-one personal service which is provided at their local post office and they do not want to see services being removed from their community.
“As well as that, the reality is that public transport is virtually non-existent in rural areas and it would be extremely difficult for people if they were forced to travel further distances in order to access their weekly pension,” he said.