The contract under which An Post provides the payments delivery service to my Department reached the end of its term on 31 December last. The Government had previously decided that the term of this contract should be extended for a further three years, namely, 2000 to 2002 inclusive.
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 complaints, and the complex legal issues upon which they are based, have been sent to the Commission. I understand the Commission is currently examining the arguments advanced by the complainant and the obser vations supplied by my Department. As part of this process, the Commission has recently sought some additional clarification of the basis upon which the decision was made. This additional information is being compiled by my Department and the Department of Public Enterprise and will be supplied to the Commission as soon as possible. It follows that the Commission has not yet reached a definitive view of the merits of the arguments which have been advanced by the complainant in this matter.
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 payments 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.
I have already re-iterated the Government's commitment to maintain a network of post offices. While not wishing to pre-empt the outcome of the issues being considered by the EU Commission, I am confident that An Post will continue to have an important role in the delivery of services for my Department. Needless to say, the Government intends to fully comply with its EU obligations in this matter, once they have been definitively established.