Written answers

Thursday, 1 March 2007

Department of Social and Family Affairs

Payment Delivery Service

5:00 pm

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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Question 10: To ask the Minister for Social and Family Affairs the position regarding the decision of his Department to extend the delivery services contract with An Post. [7918/07]

Photo of Séamus BrennanSéamus 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 alleging that the decision breached Ireland's obligations under:

(a) the competition articles of the EU Treaty, and

(b) Directive 92/50/EU — the Procurement (Services) Directive.

The competition-related complaint was closed in March 2001.

In June 2002 the Commission issued a formal notice of infringement informing Ireland that it was of the view that the Department had failed to fulfil its obligations under European Union public procurement law in deciding to award a further contract to An Post without advertising it to other potential suppliers. My Department, having consulted the Attorney General's office, contested the Commission's view.

In 2003, the Commission referred the case to the Court of Justice. The Netherlands, Denmark, Finland and France joined Ireland's defence to the Commission's application.

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 had breached EU non-discrimination rules by not publicly advertising the payment delivery service. It is expected that the Court will give its judgement shortly.

No further actions can be taken until the judgement is known. However, recognizing the essential payment delivery service which An Post currently provides for my Department, and pending the judgement from the Court of Justice, An Post continues to provide these services.

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