Vol. 518 No. 6
429 Mr. Flanagan asked the Minister for Social, Community and Family Affairs his views on a recent report from the European Union indicating a change in the awarding of contracts for the payment of social welfare benefits and the consequent threat to many rural post offices; and if he will make a statement on the matter. [12796/00]
440 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the position in relation to the EU examination of complaints that the Government failed to comply with public procurement rules and European competition law in relation to the renewal of the contract with An Post to make social welfare payment; when the EU decision is expected; and the plans, if any, he has in the event of such decision being negative. [13029/00]
I propose to take Questions Nos. 429 and 440 together.
The Government has decided that the contract under which An Post supplies payments delivery services to my Department should be extended for a further three years, 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 from the Commission that it has not yet completed its examination of the arguments advanced by the complainant and the observations which have been supplied by my Department. I expect that the Commission will complete this process in the reasonably near future. However, the precise timescale involved is a matter for the Commission.
It would 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, I remain confident that this matter can be satisfactorily resolved.
The Government is aware of the importance to An Post of the income derived from the payments contract with my Department. I remind the Deputies, however, that my colleague, the Minister for Public Enterprise, expressed the Government's commitment to maintaining a post office network and to examining the possibility of providing additional services through this network in the future.
