The Fine Gael leader, John Bruton has asked the government if it will now be necessary for people to own a car before they can buy a postage stamp. He was responding to reports that the contract for the payment of social welfare benefits should be put out for public tender.
The possibility that An Post might lose the business has raised fears about the future of local post offices, especially if An Post was to lose the social welfare business to one of the banking groups or other financial institutions. About 80% of social welfare services are delivered through the post office network.
Speaking in the Dáil today, the Labour leader Ruairí Quinn asked the Taoiseach if legislation is now needed on this issue. Mr Ahern said that the government is to seek legal advice on the matter. The contract, which has been held by An Post for 7 years, is due for renewal early next year. However, under an EU Directive, all big public service contracts must now be put out to tender.
The government has asked the Attorney General to advise on whether the payment of welfare benefits is a social or a financial service. If it is the latter, then the terms of the EU Directive would have to be applied. But if its adjudged to be a social service it would not have to go to public tender and would remain with An Post. A decision is expected in the coming weeks.
