Jim O'Keeffe
Question:145 Mr. J. O'Keeffe asked the Minister for Social and Family Affairs the position in relation to her Department's contract with An Post; the full details thereof; and if she will make a statement on the matter. [6810/03]
Written Answers - Departmental Contracts.
An Post has been providing payment delivery services to my Department for many years, most recently on foot of a contract signed by both parties in 1992 and renewed in 1996 to cover the provision of these services until the end of 1999. At that stage, following a Government decision to continue the arrangements with An Post for a further three years these arrangements became the subject of complaints to the European Commission under both competition law and procurement law.
The complaint relating to competition law has been closed by the Commission on the basis that there are no implications for my Department in this area. The complaint relating to procurement has also been investigated and the Commission considers that the present arrangements are not in compliance with EU procurement legislation and principles. It is my view that the reasoning put forward by the Commission is flawed and, following advice from the Attorney-General's office, the Commission has been notified of the Government's disagreement with the reasoned opinion. The matter may now be referred by the EU Commission to the European Court of Justice for determination.