Liz McManus (Wicklow, Labour)
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Question 165: To ask the Minister for Social and Family Affairs the position in relation to the tendering process and timetable with regard to the social welfare contract in relation to An Post; the implications of the recent EU ruling; and if he will make a statement on the matter. [35618/07]

Martin Cullen (Waterford, Fianna Fail)
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In 1992, my Department and An Post entered into a five year contract for the delivery of social welfare payments. This contract was renewed in 1997 for a further three years to the end of 1999. The Government's decision in 1999, to extend the Department's contractual arrangements with An Post, gave rise to a procurement complaint being lodged with the European Commission in 2000. The complaint was subsequently referred to the European Court of Justice by the European Commission.

On the 13th November 2007 the European Court of Justice ruled that "in entrusting the provision of social benefit payment services to An Post without undertaking any prior advertising, Ireland has not failed to fulfil its obligations under Articles 43 EC and 49 EC and the general principles of Community law in connection with a contract for the supply of such services". My Department is awaiting advice from the Attorney General on the implications of the Judgement for the current arrangements with An Post and the delivery of payment services. In the meantime the current arrangements with An Post for the delivery of social welfare payments will remain in place. An Post and my Department have been partners in the delivery of social welfare payments since the foundation of the State. I am confident that An Post and its network of local post offices will continue to play a significant role in the delivery of social welfare payments.