Michael Harty (Clare, Independent)
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708. To ask the Minister for Employment Affairs and Social Protection if there is a stated long-term commitment relating to the delivery of the social welfare contract via the post offices. [37548/18]

Regina Doherty (Meath East, Fine Gael)
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While responsibility for An Post rests with the Department of Communications, Climate Action and Environment, the Department of Employment Affairs and Social Protection is an important customer of the company. The Department makes approximately 80 million social welfare payments per annum of which nearly 42% are by cash via the post office network.

These cash payments are governed by the Department’s Cash Services Contract with An Post which was signed in December 2013 and came into effect in January 2014. This agreement allows me, as Minister, to extend the term of the contract on an annual basis up to the end of 2019. Earlier this year I renewed this contract for another year to provide pensions, Child Benefit and other social welfare payments in cash at Post Offices. Last year’s contract amounted to €51 million for 33.6 million payments, and the value of the 2018 contract is expected to match that.

The Department is required by law to go to public tender for the provision of cash services from 1 January 2020. The award of public sector contracts with a significant financial value is subject to various EU Directives. Public procurement rules ensure that the taxpayer receives value for money and ensures that all potential suppliers are given the opportunity to put forward the most efficient, effective and competitive solutions for consideration and evaluation.

As far as is possible, the Department remains committed to giving social welfare recipients a choice of payment method. Its consistent position has been that it will respect customer choice as appropriate and make payments in line with customer preference where choice is available.