Michael Healy-Rae (Kerry South, Independent)
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Question 97: To ask the Minister for Social Protection if she will ensure that the current contract that post offices have with regard to paying out social welfare entitlements stays in place; and if she will make a statement on the matter. [30632/11]

Joan Burton (Dublin West, Labour)
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The current range of payment options offered by my Department offers choice to most scheme customers in how they are receive their welfare entitlement. The options include payment at a local post office or through a bank, building society or certain credit unions or payment by cheque. The post office is the preferred choice of the majority of customers for the receipt of their social welfare payment. It is however, the most costly channel of payment through which a welfare payment can be paid to a customer.

The current contract with An Post for the payment of welfare customers expires on the 31st December 2013. In line with public procurement guidelines and in the interests of economy, public sector contracts for the supply of products and services are generally awarded following a publicly advertised, competitive tendering process. In addition, the award of public sector contracts with a significant financial value is subject to various EU Directives. This ensures that the taxpayer receives value for money and that all potential suppliers are given the opportunity to put forward for efficient, effective and competitive solutions for consideration and evaluation.

The Department is required to tender for any new contract for the delivery of social welfare payments before the current contract with An Post expires in 2013. In this context, the Department is developing a Payment Strategy to support the modernisation of welfare payment methods. This strategy will enable the Department to continue to modernise the payment of welfare benefits in line with wider Government policies and objectives such as better public services, better and more effective e-payments and the National Payments Implementation Programme.

It will of course be open to An Post as the current provider to bid for the new contract. The procurement process will be completed in advance of the termination of the contract, in order to ensure continuity of payments to our customers.