Social welfare revamp could sound the death knell for rural post offices

A stark warning was issued this week that villages across the county – which have already seen the closure of rural Garda stations and pubs – could also lose their local post offices if the Government changes the way in which social welfare payments are made across the country.

The Irish Postmasters’ Union (IPU) has warned that 400 outlets across the State could be shut down for good when a new tender to move to electronic payments is announced next month.

“At a time when there are so many places where there is no social interaction, where Garda stations and local pubs have closed, it really would be a shame for rural areas of County Galway,” said Brian McGann, General Secretary of the IPU.

Local representative Padraig McNamara told last week’s IPU conference in Dublin that the future of many branches in Galway city and county were in the balance because the social welfare contract is being tendered internationally.

Social welfare payments account for 35% of the business of many rural branches, where some postmasters are struggling to make ends meet and rely on other core business such as retail shops for income.

“We are not against new technology or progress but the public are entitled to access their money in the way that best suits their needs. We do not yet know the full terms of the new tender but we are very concerned that it will force the successful tenderer to rush headlong down the e-commerce route,” said Mr McNamara.

“The Government should be very wary of the consequences, not just for an estimated 400 Post Offices that would close immediately if An Post were to lose the contract, but also for Irish society. It would be catastrophic.”

See full story in this week’s Connacht Tribune.