Minister of State for Communications Joe McHugh said he was “surprised’’ to learn a letter had been sent to pensioners encouraging them to have their money paid by direct bank debit rather than through post offices.

“Nobody was more disappointed than I was when I saw the letter,’’ he added.

Mr McHugh, who represents Donegal North-East, said the letter, from the Department of Social Protection, was not "mandatory or prescriptive'', but black-and-white information.

Mr McHugh said a working group on the long-term sustainability and viability of post offices had been established under the stewardship of Bobby Kerr.

“Progress has been made and good work has been done by the group,’’ he added. “There is good, open and honest conversation.’’

Mr McHugh was replying to Cork North-West Fianna Fáil TD Michael Moynihan and Tipperary South Independent TD Mattie MGrath.

Mr Moynihan, referring to the letter, said if the department continued to pursue such a policy it would mean all of the post offices in the country closing.

"The department should be examining how An Post needs to change to ensure the transaction can happen through the post offices in the same ways it can in the banks,'' he added.

Mr McGrath said there would be nothing in rural Ireland without post offices.

“They are the last bastion we have, ‘’ he said. “We have lost the Garda stations, schools, you name it.’’

Mr McGrath suggested that post offices could do the work of banks and provide other services to keep them viable.

He said the Department of Social Protection wanted all its transactions, bar three percent, done by electronic means by this year. He added there were “only a few people out in the sticks’’ who did not have broadband.

Mr McHugh said the Government made a decision to proactively work on a cross-departmental basis to examine how all departments could work together to lend their weight to keeping post offices viable.

Post offices in rural areas, he said, provided an opportunity for people to meet.

“Perhaps banking in post offices is an option,’’ he added.

Mr McGrath said there was a concerted attack on post offices, and the Department of Social Protection had to be reined in and restrained.

He said the Taoiseach had announced in a blaze of glory he would send all of his ministers and deputies to visit small businesses in rural Ireland to see what the Government could do for them.

“We are discriminating against self-employed postmistresses and postmasters who do Trojan work and give employment, pay rates and taxes and look after people,’’ Mr McGrath added.