Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 108: To ask the Minister for Public Expenditure and Reform the cost of using paper invoices; the timetable for implementing e-invoicing; and if he will make a statement on the matter. [35287/11]

Brendan Howlin (Wexford, Labour)
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The National Procurement Service (NPS), under its responsibility for e-Procurement, has been tasked with supporting procurement-related savings across the public service. An area with potential for achieving savings for buyers and suppliers in the whole procure-to-pay process is the widespread adoption of electronic invoicing for public sector bodies and for business to business transactions in Ireland.

At the request of the European Commission a National Multi-Stakeholder Forum on eInvoicing was established by the NPS on 30 May 2011.

The aim of the European Commission is to have all member states using e-invoicing by 2020. Following the initiation and evaluation of pilot projects, Ireland may be in a position to have e-invoicing rolled out towards the end of 2013.

In terms of savings achievable through the widespread adoption of e-Invoicing, research at a European level has shown that:

· Currently, the lack of basic interoperability between trading partners in the supply chain is costing up to €60 per trade between them i.e. €60 per invoice (Source: School of Management, Politecnico di Milano).

· On the invoicing process alone this equates to €40 billion loss per annum in the EU.

There is no centrally held information in regard to the administrative cost of processing invoices in each department and there is no accurate assessment of the potential savings associated with the introduction of e-invoicing. However, on the basis of European studies, Ireland as a whole could save between €240 - 400 million over a 6-year period following the roll out of e-invoicing. There is a European initiative in relation to e-invoicing which aims to have all member states using it in the public and private sectors by 2020. In that context, and at the request of the European Commission, a National Multi-Stakeholder Forum on invoicing was established by the National Procurement Service on 30 May 2011.

In examining the potential for the implementation of electronic invoicing, the NPS has met with a number of public sector bodies which are considering implementing this technology, or which have already commenced pilot projects. The NPS has also met with a number of service providers in the marketplace and looked at the implementation in other EU Member states (Denmark) and has been in contact with the European Commission in relation to the current projects under way in this area.