Dáil Éireann díospóireacht -
Wednesday, 1 Mar 2000

Vol. 515 No. 4

Written Answers. - Social Welfare Payments.

Michael Ferris

Ceist:

46 Mr. Ferris asked the Minister for Social, Community and Family Affairs the likely developments in the allocation of the social welfare payments contract at the end of 2001 in view of concerns expressed for the future of the local post office if this contract is removed from An Post. [6111/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The contract under which An Post supplies payments delivery services 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, 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 observations supplied by my Department. It would be entirely inappropriate for me to speculate about this process or its ultimate outcome at this stage.

The necessity to address and resolve the issues raised with the EU Commission has delayed the completion of a new three year contract. In the meantime, recognising that the payment 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 reiterated this 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.