Vol. 519 No. 2
68 Mr. J. O'Keeffe asked the Minister for Public Enterprise if her attention has been drawn to reports that up to 1,000 rural post offices will be in jeopardy if the EU blocks An Post from being given the contract to make social welfare payments from 1 January 2000; the alternative or contingent strategies she has in place to encourage the retention and development of such rural post offices; and if she will make a statement on the matter. [13341/00]
The Government is aware of the importance to An Post of the income derived from the contract under which An Post supplies payment delivery services for the Department of Social, Community and Family Affairs and decided in May last year that it should be extended for another three years, from 2000 to 2002 inclusive.
Certain legal issues regarding the extension of this contract have been raised with the EU Commission by an interested third party. I understand that the Commission has not yet completed its examination of the arguments advanced by the complainant and the Department of Social, Community and Family Affairs. It would, under the circumstances, be entirely inappropriate for me at this stage to speculate about the outcome of the Commission's deliberations on this matter. Likewise, it would be inappropriate for me to enter into conjecture about the action, if any, which may be necessary once the Commission informs Ireland of its conclusions in this matter. However, my colleague, the Minister for Social, Community and Family Affairs has indicated that he is confident this matter can be satisfactorily resolved. The Government is committed to the retention and development of the post office network. I have recently asked An Post to allocate £5 million specifically to the upgrading of the rural sub-post office network. The possibility of some matching funding from the Exchequer for this purpose will also be examined. In this context, An Post and the Irish Postmasters Union are currently considering options for the sustainable development of the rural sub-post office network under the independent chairmanship of Mr. Phil Flynn. I am confident these negotiations will result in measures which will ensure the future of the rural network.
