Oireachtas Joint and Select Committees

Tuesday, 21 October 2014

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Public Procurement Contracts: Discussion

2:25 pm

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael) | Oireachtas source

I welcome the groups here today. I appreciate the sincerity and the concern that they have expressed. A number of groups have contacted me, particularly art suppliers about schools. I represent Galway West so I do not think I was contacted regarding the particular concerns expressed. That is not to say that the speakers were not engaged with other people regarding them. I raised an issue with the Minister for Public Expenditure and Reform, Deputy Howlin, in the Dáil last June. The question related to the setting up of the office of public procurement and the measures taken to maximise the participation in the procurement process of small and medium-sized enterprises, SMEs. There were a number of points raised by him and I ask the groups to comment on them. The Minister spoke of circular 10 of 2014 launched in April setting out the new initiatives regarding procurement and the new guidelines aimed at reducing the burden of cost. He said the new circular has been broadly welcomed by the industry representatives on the SME working group, which includes ISME, IBEC, the Small Firms Association, Chambers Ireland, and the Department of Jobs, Enterprise and Innovation .

When I questioned him regarding the savings and so forth, he stated that less than 5% of the overall public procurement spend is now won by foreign companies. In excess of 95% of public procurement in Ireland is won by Irish companies, 75% of which are SMEs. That was the figure for 2013 up from 60% in 2012. The Minister said that whatever we are doing, we are moving in the right direction. That is at odds with what the groups are saying. I appreciate they have real examples of real job losses and the effect on their industry. Taking that as the overall scene and those figures - presumably those are the actual figures; the Minister has put them on the record in the Dáil - the Minister is saying the situation is good, we are moving in the right direction and that this is fine. Could the groups comment on those figures?

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