IPU seeks retention of welfare payments

The Irish Postmasters’ Union (IPU) has called on the Government to retain the Post Office network as the provider of choice for the delivery of welfare payments.

Speaking at the IPU's annual conference in Mullingar, the union's general secretary called for the retention of the contract in order to halt the closure of post offices.

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.”

According to IPU figures, the share of the social welfare contract handled by Post Offices declined from 80% in 1998 to 55% in 2005, as people pay 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.

The union also accused the Government policy of being "ambiguous" and "vague" and, compared "to the majority" of EU countries, claimed Ireland does not have specific minimum requirements in relation to network size and coverage.

The paper also highlighted the value of the post office network to local communities as a gateway to government and financial services for people where the Post Office is a key point of social contact and support.