Oireachtas Joint and Select Committees

Thursday, 3 October 2013

Public Accounts Committee

2011 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 7 - Superannuation and Retired Allowances
Vote 42 - Office of the Minister for Public Expenditure and Reform
Chapter 6 - Financial Commitments under Public Private Partnerships
Chapter 12 - Vote Accounting
Chapter 13 - Procurement without a Competitive Process

10:50 am

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

It will be good to get back to a position where Departments do not require Supplementary Estimates.

The figure for the procurement of goods and services in the year in question was €8.6 billion which with capital expenditure of €4.5 billion gives a total of €13.1 billion. How much of that spend was on Irish goods and services? I know there are EU regulations for tendering processes but most other EU member states are able to ensure their tenders go to domestic providers through how they construct their tendering contracts. France, Germany and the others do it, but Ireland has been weaker in this area. Some tendering can get the lowest price for the taxpayer, but it can have a knock-on effect, with local businesses losing out. While the Department might show a cash saving on a tender, Ireland Inc. could show job losses in the wider economy. Is there a system in place to take this into account? For example, a school might source products that are cheaper than they would be from a local supplier. While it results in savings, the local business might be forced to shut down. What is the impact of tendering on the wider economy?

The Department has a target of saving €500 million in procurement. What is the breakdown of this figure for this year and next year? Will it include the savings made on drug payments in the Department of Health?

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