Vol. 515 No. 3
260 Mr. U. Burke asked the Minister for Social, Community and Family Affairs if the EU is renewing pressure on his Department which will force the Government to put the social welfare payments contract out to tender; if An Post's contract will continue so that small rural post offices will remain open and viable to serve the needs of rural communities; and if he will make a statement on the matter. [6223/00]
The Government decided last year to extend the term of the Department's contract with An Post for the delivery of social welfare payments for an additional period of three years. Following this decision, certain legal issues regarding the extension of the contract have been raised with the EU Commission by a third party which feels aggrieved by the Government's decision. In accordance with its usual practice in these matters, the Commission referred these complaints to my Department for its observations.
Responses to the complaints have been sent to the Commission. The Commission is currently examining the arguments advanced by the complainant and the observations supplied by my Department. These matters are being processed by the Commission in accordance with the normal procedures which apply in matters of this nature and I am confident the Government decision will stand up to this scrutiny. The question of pressure or coercion forming part of this process does not arise.
The Government intends to comply fully with its EU obligations in this matter, once they have been definitively established.
The necessity to address and resolve the issues raised with the EU Commission has delayed the completion of a new three year contract with An Post. In the meantime, recognising that the payment delivery service which An Post provides to my Department's customers must continue without interruption, my Department and An Post have agreed that the company will continue to provide these services on an interim basis. The Commission has been notified accordingly.
Finally, I wish to take this opportunity to reiterate my own and the Government's commitment to maintain a network of post offices. Our policy in this regard has been clearly stated by my colleague, the Minister for Public Enterprise.
