Postmasters fear for their futures

THE destructive effect on post offices throughout the county if the Government proceeds with its policy to channel social welfare payments out of An Post to financial institutions has been presented to Social Protection Minister Joan Burton.

A delegation of postmasters from Clare, including Gerard McMahon, Clarecastle; Francis Talty, Lahinch; Gregory Fitzgerald, Kilmihil; Elaine Hogan, Miltown Malbay and Irish Postmasters’ Union (IPU) executive member, Tom O’Callaghan met Minister Burton for what Deputy Michael McNamara described as a private meeting in Miltown Malbay Resource Centre last Saturday night.

Deputy McNamara stated the Central Bank wants the Government to reduce the high level of cash transactions in the country.

He pointed out the minister assured the delegation anyone who wants to receive their social welfare in cash could continue to do so.

He said the Government is obliged by EU law to put the two contracts out to tender. He proposed post offices should try and secure more banking facilities and provide tourist information in a further expansion of their services to make them more sustainable.

She pledged her special advisor would engage with the IPU as soon as possible and gave a commitment that motor tax renewal is a priority for post offices.

In reply to concerns expressed by Deputy Pat Breen, Minister Burton explained in a recent letter that the department envisages that social welfare payments will ultimately be fully electronic.

She noted the progression to electronic payments is a critical element of the National Payments Plan, which aims to reduce the high levels of cash in the economy.

“All welfare customers paid through the post office network are paid in cash, which is inherently expensive for the department.

“This approach is inefficient, costly and imposes security risks on customers and staff alike, who handle, distribute and receive these monies.

“In addition, to further support the migration towards electronic payments, the department will be procuring an ePayment solution(s) to complement the existing facility to make payments directly into customers’ accounts in financial institutions,” she stated.

Mr O’Callaghan believes current Government policy needs to be reversed.

“The bankless society, which they tried to introduce, was a failure. We want to deal with the public and we want to develop a sustainable alternative. Without the social welfare contract, post offices are facing closure. Regardless of what other business is provided, it will not make post offices viable. Communities in rural parts will collapse if the Government proceeds with its current policy. We are prepared to work with the Government to make whatever savings are necessary but we can’t take out the people we are supposed to be looking after. We are willing to embrace technology, provided it remains in the post office.

“The Government needs to deal with the debt issue without taking out vital services like post offices. If you take the cash out of a village or town, it will die,” he said.

The minister hadn’t responded to a Clare Champion query at the time of going to press.
Mayor of Clare Pat Daly said Government plans to move social welfare payments to a purely electronic system could spell the “death knell” of rural post offices in County Clare.

He urged Minister Burton to reconsider the move, given what he called the “negative social and economic implications” of her proposal for communities across Ireland.

“I have spoken with post-office masters in County Clare, who have said in no uncertain terms that this proposed move is nonsensical and potentially damaging to those who work within the sector, as well as customers.

“Minister Burton should at least offer customers the choice of receiving payments electronically or via the current over-the-counter method.”

“The move to an electronic payment system would require social welfare recipients who do not have bank accounts to establish one and consequently incur rising bank charges, which is something they can ill afford,” he said.