Dáil Éireann Debate, Tuesday - 27 November 2012
351. Deputy Michael Colreavy asked the Minister for Social Protection if there will be a derogation provided to her Department from European competition law to continue using post offices to administer social welfare payments into the foreseeable future; and if she will make a statement on the matter. [52702/12]
View answerAn Post currently issues payments on behalf of the Department in respect of various social welfare schemes. The contract under which An Post provides this service will expire on 31st December 2013.
The award of public sector contracts with a significant financial value is subject to various EU directives and are usually awarded following a competitive tender process. This ensures that the taxpayer receives value for money and it also ensures that all potential suppliers are given the opportunity to put forward efficient, effective and competitive solutions for consideration and evaluation.
Because of the financial value of this particular service, the Department is required to tender for any new contract for the delivery of social welfare payments when the current contract with An Post expires in 2013. It will of course be open to the current provider to bid for any new contract. The procurement process will be completed in advance of the termination of the contract in order to ensure continuity of service to the Department’s customers. In the circumstances, the question of seeking a derogation from EU competition requirements in regard to the provision of social welfare payments through An Post facilities does not arise.
