Possible closure of 400 Post Offices would devastate rural communities

Deputy Áine Collins yesterday asked the Minister for Social Protection to conduct a cost-benefit analysis before introducing a new tender process which would see social welfare cash payments being changed.  

Deputy Collins expressed concern regarding the changes in the payments process saying that they  would “have a devastating effect on post offices and rural communities”.

Speaking in the Dáil she said “We need to open a discussion on what type of society we want. Anyone who tried to shout “Stop” about the property bubble was ignored or ridiculed. We must not make the same mistake now and not shout “Stop” about changes that have the potential to rip the heart out of communities throughout the country.

“If post offices close in my constituency of Cork North-West, a majority of people will have no access to a financial institution in any town or village.

“The current proposals require a reduction in cash payments for social welfare benefits at post offices from the current level of 51% to 3% by 2017. This reduction in cash payments would directly result in the closure of 400 post offices.

“In many areas, the only available shop is attached to a post office. No cost-benefit analysis has been carried out to take into account the potential damage that could be caused by the Department’s actions socially, economically and to the overall community.

“In rural Ireland, social protection means more than giving money to people in the most cost-effective way. A connection with the post office is sometimes the only outlet for social interaction that many older people have in the entire week.

“I acknowledge that An Post has challenges outside the issue of social protection. We have examined the idea of paying motor tax in post offices and the Minister of State, Alex White, also referred to Aviva and various other payments. In small rural villages, however, such payments will not keep local post offices viable. Without social welfare payments, such post offices will not be viable.

“We need to examine the wider implications of any closures and conduct a proper cost benefit analysis taking into account the wider community issues as well as the financial implications.”