Dáil Éireann debate -
Thursday, 27 Mar 2003

Vol. 563 No. 6

Written Answers - Social Welfare Payments.

Emmet Stagg

Question:

45 Mr. Stagg asked the Minister for Social and Family Affairs her position regarding the European Commission opinion on the decision to award the delivery of social welfare payments to An Post; and if she will make a statement on the matter. [8475/03]

Minister for Social and Family Affairs (Mary Coughlan)

The arrangements for the delivery of payment services to my Department by An Post were formalised 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 these arrangements became the subject of complaints to the European Commission under EU competition and procurement law.

In the Commission's view my Department had infringed EU procurement legislation and principles by reason of the decision to continue the contractual arrangements with An Post. Most recently it issued a reasoned opinion on this matter. Following legal advice I replied to the commissioner outlining the Government's position and this reply is being considered by the Commission.