The withdrawal of social protection transactions would put post offices under threat, Senator Marie-Louise O’Donnell said.
She told the Seanad social welfare payments accounted for more than 30 per cent of transactions and, if removed, would end a core business.
"We really need to take this on board because savings and savings certificates in the post office are probably the most valuable savings people have in any bank in Ireland, given that the post office does not rob people and then come back and ask people to pay for the robbery,'' Ms O'Donnell added.
She said she did not wish to hear about "IBRC, Bank of Ireland, Allied Irish Banks, or any of these valueless banks for which we paid millions and are still paying millions". She said they should talk about the real bank – the post office.
David Cullinane, of Sinn Féin, claimed a Department of Social Protection form showed a clear bias towards financial institutions. "That flies in the face of assurances . . . there is no inherent bias towards financial institutions when it comes to social welfare payments," he added.
