Oireachtas Joint and Select Committees

Tuesday, 15 July 2014

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Pre-Budget Submissions: Discussion

3:10 pm

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

Another issue has been mentioned is the issue of procurement, on which we have not made much progress. The Government has its office of procurement. I believe we are at least 5% behind other EU countries in terms of contracts that are given to native businesses - businesses that are registered here in Ireland. Between capital and current expenditure, the Government spends about €13 billion. That 5% represents €650 million. The Government is giving €650 million of money to be spent in Ireland to contractors or businesses from outside the State. There are some good reasons for that. We all agree that schools should not be paying an inflated price for a sheet of photocopying paper if it can be got cheaper.

What discussions have the various organisations had with the Department on what I would call customising the tender documents such that they would help Irish people? One cannot just say, "No non-Irish companies need apply." However, the French are well able to customise their tendering approach to suit French businesses. The Germans are expert at it. With the Italians, I am sure nobody gets a look-in at all. I would even go so far as to say that locally, Ireland is very good at doing this. When it comes to road construction or maintenance in Cork or Kerry - no disrespect - if one is from outside those counties one should not be wasting one's time sending in a tender. So procurement officers are well able, if they want, to gear their tenders to suit the market that is out there. I am seriously depressed that we are handing €650 million to those outside the country. I am sure we could ensure that 80% of that stays in the country with proper imagination and without breaking the EU rules. Other countries are better at it. I thought we were clever in Ireland.

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