Seán Kyne (Galway West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

314. To ask the Minister for Social Protection when the contract for provision of social welfare payments was awarded to An Post; the duration of this contract; if there is an option to renew; if there is any legislation before the Houses of the Oireachtas that would alter this contract in any way; and if she will make a statement on the matter. [27341/14]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

I was very pleased to sign a contract with An Post for over the counter cash payment services for welfare clients at the end of last year. This was, for the first time, signed on foot of a detailed specification of services and was openly and publicly advertised in a procurement competition for the delivery of these services. It was essential that the procurement competition was fully compliant with European procurement law given the previous challenge adjudicated on by the European Court of Justice in relation to the cash payment services delivered through An Post. The contract has been awarded for two years commencing on 2 January this year. The contract may be reviewed annually for to four years thereafter – an accumulated period of up to six years in total up to December 2019.

I am confident that the contract for the delivery of payments to welfare clients is now robust. My next step was to ensure that the legislation backing the contract was equally robust. The objective behind the proposed legislation currently being considered by the Houses of the Oireachtas is to achieve that new strength in law. The legal provisions being considered do not interfere with the contract. They do, however provide a basis for a new resilience in law to fully recognise that these services are being delivered under formal contractual arrangements, which was not the case heretofore. That contract is between me, as Minister, and an external payment service provider, An Post. The proposed amendments, as set out in the Social Welfare and Pensions Bill 2014 reflect the services that An Post is providing to us to deliver welfare payments to properly authenticated clients.

The measures contained in the Bill update the legal framework behind the new contract with An Post so as to ensure that its activity on behalf of the Department on a week-to-week basis has the backing required to ensure our fraud and control regime remains robust and resilient. I place a very high value on protecting the integrity of expenditure from public funds. Key to this is tackling the risk of fraud and abuse within the social welfare system. The proposed amendments enhance the Department’s opportunities in tackling fraud and abuse within the aspects of the system that directly relate to the payments to clients and allows An Post to work with the Department in implementing these controls.

I am keenly aware of the excellent work carried out by postmasters. I am also aware of the concerns and many debates that have been held over the past few months in relation to the future of An Post. As Minister I need to ensure that the legislation can stand up to scrutiny and that neither I as Minister, nor An Post are exposed in any manner to any risk to the existing contract.