Dinny McGinley (Donegal South West, Fine Gael)
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Question 406: To ask the Minister for Social and Family Affairs if he will assure the Houses of the Oireachtas that social welfare contracts will remain with the post office (details supplied); and if he will make a statement on the matter. [7559/07]

Séamus Brennan (Dublin South, Fianna Fail)
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Following the Government decision in 1999 to extend the An Post contract for the delivery of social welfare payments for a further 3 years, a complaint was lodged with the European Commission under the Procurement Services Directive.

The Advocate-General to the European Court of Justice gave an opinion on the case on 14th September 2006 and concurred with the European Commission's view that Ireland breached EU non-discrimination rules by not publicly advertising the payment delivery service. It is expected that the European Court of Justice will give its judgement in the coming months.

In 2006 approximately 39 million payments were issued to social welfare customers through post offices at a cost of €48 million. Recognising the essential payment delivery service which An Post currently provides for my Department, and pending the judgement from the European Court of Justice, An Post continues to provide these services.

An Post and my Department have been partners in the delivery of social welfare payments since the foundation of the State and there is no reason to believe that An Post and the network of post offices will not continue to play a significant role in the delivery of social welfare payments in the future. The post office network, and the position of any individual Post Office, is a matter in the first instance for An Post.