Frances Fitzgerald
Ceist:28 Ms Fitzgerald asked the Minister for Social, Community and Family Affairs his Department's policy regarding the future delivery of social welfare services via An Post. [19863/01]
Priority Questions. - Social Welfare Services.
The contract under which An Post supplies payments delivery services to my Department reached the end of its term on 31 December 1999. 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. 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.
The necessity to address and resolve the issues raised with the EU Commission has delayed the completion of a new contract with An Post. 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 the 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.
What are the Minister's views on the future of the contract his Department has with An Post, given that a group recently found that An Post's network was technically insolvent and will quickly become bankrupt without a change in funding? Some 55 post offices have closed in recent months and elderly people have to travel further and further for post office services. The Minister's Department is the biggest client of An Post, with a contract worth £35 million in 1999.
Does the Minister support the establishment of a universal bank service for social welfare claimants similar to one planned in Britain and delivered through a network of local post offices? What approach is his Department taking on that? What is his approach? What are the views of the Minister's representatives on the interdepartmental committee? What ideas is he putting forward so that these local post offices can be kept open and the funding resolved?
My Department is represented on the interdepartmental working group chaired by the Department of Public Enterprise. It is looking at recommendations on how the network of post offices can be put on a sound business footing. There is no doubt that if An Post lost the social welfare contract there would be severe financial implications. We tend to be positive and it is Government policy to work with An Post to ensure the delivery of social welfare services continues to be operated through An Post's counter division. It is generally accepted that people like the social interaction of going into a post office and I assure the Deputy we will do everything we can on this side of the House to ensure the relationship between An Post and the delivery of social welfare will continue and that An Post will continue to play a very important role in this regard for years to come.
Does the Minister support the view expressed by the Minister for Public Enterprise that the banks should become involved in subsidising this service? She said so in the House recently and referred to what the Consignia was doing in the UK to save local post offices. Does the Minister have an opinion on this? Does he support it? Is his Department pushing for this sort of scheme on the interdepartmental group? Can he clarify his approach and views on this? Does he support this kind of approach?
Obviously the deliberations of the working group based on what the Flynn report had to say are still at issue and under discussion. I fully agree with the sentiments of the Minister for Public Enterprise regarding the possible involvement of the banks. I, no more than anyone else who uses the banks, have a sense of frustration with the way some banks are closing facilities and ceasing services in some existing facilities. This will create an opportunity for an organisation like An Post and I would like to think An Post will be able to rise to the challenge. That is why the Government made decisions some time back to give An Post extra business in relation to bill collection and so on. I assure the Deputy that every avenue is being looked at to improve the relationship with An Post in order to deliver the service people want on their doorsteps as well as providing An Post with a firm financial footing.
Has the Minister briefed his representatives on that interdepartmental group? Has he given them suggestions to take forward regarding the establishment of a universal service for social welfare claimants? Has he put forward specific suggestions as to how An Post can, in effect, be saved, as his Department is its largest customer?
Yes, my Department has made very strong suggestions to An Post and continues to do so. It has provided An Post with substantial funding in order to improve its technology in recent years, and not just the past four years.