Irish An Post to pump EUR 15 million into security
An Post is expected to spend an additional EUR15 million improving security on its cash-in-transit service to post offices throughout Ireland.
The move is being taken as a result of the recent spate of robberies and pressure from Minister for Justice Michael McDowell for security arrangements to be upgraded.
The postal service disburses EUR6.5 billion each year in its post offices for the Department of Social and Family Affairs. It is also the largest bill processing agent in the state.
A spokesman for An Post confirmed to The Sunday Business Post that it was conducting a full review of its security arrangements.
The company, which hands out an estimated EUR115 million in social welfare payments each week, has had only two of its cash delivery teams held up in the last two years.
Private security teams have been held up at the rate of one per week over the same period. The company has by far the biggest network of cash outlets in the country and the cash transit service is also one of the biggest.
Earlier this year McDowell told the representatives of banks that they will have to contribute more to the cost of armed escorts for cash in transit deliveries.
These operations cost EUR9 million a year and McDowell has told banks that they would have to pay more than their present contribution of EUR3million.
Minister for Defence Willie O’Dea also demanded an increase in payments to his department. However, An Post has not been asked to pay for army escorts, even though his department requested that the banks meet the full cost.
An Post accounts for about 20 per cent of escorts but is not being asked to pay because it is a state company whose cash deliveries are for social welfare and pension payments.
The company recently received more than ten expressions of interest from private companies to tender for the provision of cash-in-transit services.
At present, its cash transfers are carried out by Securicor, although some of the local transfers are carried out by An Post delivery teams.
In an effort to reduce its dependence on cash transfers, An Post established a Business Deposit Scheme about five years ago, under which post offices can use the cash deposits of business customers to pay social welfare recipients.
A similar arrangement exists with AIB under which the bank’s account holders can conduct certain transactions in post offices.
Despite these arrangements, the postal service transfers hundreds of millions of euro around the country each month.
McDowell recently warned the security industry that standards had to be established within the industry and that competition could not be allowed to drive standards through the floor.
In April, following a meeting with representatives of transit companies, banks, An Post and the Irish Bankers’ Federation, McDowell said cash transit companies had four months to improve security or else face new state rules.
The minister said that new cash security boxes which spread dye, or destroyed notes if a raid takes place – and which could not be opened even under duress by the people carrying them – would have to be introduced by all companies.
He also insisted on improved GPS satellite tracking systems, which are adequately equipped with alarms, along with stiffer security at cash depot centres and closed-circuit TV systems in all branches of banks and credit unions to deter would-be robbers.
