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Dáil Éireann díospóireacht -
Thursday, 20 Feb 2003

Vol. 561 No. 6

Written Answers - Departmental Contracts.

Eamon Ryan

Ceist:

33 Mr. Eamon Ryan asked the Minister for Social and Family Affairs the nature of European Commission concerns over the contract between her Department and An Post in relation to the delivery of social welfare payments; and if she will make a statement on the matter. [4927/03]

An Post has been providing payment delivery services to my Department for many years. Following a Government decision to extend the contractual arrangement with An Post for a three year period from 1999, these arrangements became the subject of complaints to the European Commission under EU competition and procurement law. Since then, with the agreement of the EU Commission, An Post has continued to provide its normal services on an interim arrangement basis pending the Commission's deliberations on this matter.

The complaint relating to competition law has been closed by the Commission on the basis that there are no implications for my Department in this area. The complaint relating to procurement has also been investigated and the Commission considers in this regard that the present arrangements are not in compliance with EU procurement legislation and principles. The matter has been fully considered in consultation with the Attorney-General's office and a detailed response issued to the EU Commission on 28 August 2002 rebutting the EU view and detailing counter arguments. The Commission has issued a reasoned opinion on the matter and a reply has issued to the Commission from my Department.

The issues involved will now be referred to the European Court of Justice for decision.

Question No. 34 answered with Question No. 9.

Question No. 35 answered with Question No. 29.

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