Brendan Griffin (Kerry South, Fine Gael)
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381. To ask the Minister for Social Protection if she will insure that protection in the procurement competition for the delivery of this service will be provided for post offices and sub agents who administer social welfare payments, in view of the impact the loss of this business will have on their businesses; and if she will make a statement on the matter. [25424/13]

Joan Burton (Dublin West, Labour)
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The award of public sector contracts with a significant financial value is subject to the rigours of a number of EU Directives relating to procurement. A general rule to be applied is that public sector contracts for the supply of products and services are subject to a competitive tendering process. This ensures that the taxpayer receives value for money while also ensuring that all potential suppliers are given the opportunity to put forward the most efficient, effective and competitive solutions for consideration and evaluation. Therefore, because of the financial value of this particular service, the Department is required by law to publicly tender for any new contract for the delivery of social welfare payments.

The current contract for the delivery of cash payments to customers expires at the end of 2013. In this context, the Department is undertaking two public procurement competitions for the delivery of welfare payments. The first procurement for the provision of over the counter cash services for social welfare customers commenced in December 2012 and is well advanced. This will provide similar access and services to those currently being enjoyed by welfare customers.

A notification regarding the second procurement for an ePayment solution(s) will issue over the coming months. This will complement the existing facility to make payments directly into customers’ accounts in financial institutions.