Oireachtas Joint and Select Committees

Wednesday, 22 June 2016

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Estimates for Public Services 2016
Vote 11 (Department of Public Expenditure and Reform) (Revised)
Vote 12 (Superannuation and Retired Allowances) (Revised)
Vote 14 (State Laboratory) (Revised)
Vote 15 (Secret Service) (Revised)
Vote 17 (Public Appointments Service) (Revised)
Vote 18 (Shared Services) (Revised)
Vote 19 (Office of the Ombudsman) (Revised)
Vote 39 (Office of Government Procurement) (Revised)

9:00 am

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

Yes. If I was in this position, I would be conscious that this would involve divulging business data not only to the Department but to others, and then one is competing against larger companies with greater turnover. The turnover figure required to qualify to tender for business is too high. Not too many Irish companies have this level of turnover. The complaint is that many of the contracts for procurement end up going to companies outside the country. In France, they break down the system to ensure it is possible for the SME sector to engage directly in procurement. While the Government is making a saving in respect of a component of the business, it could be losing if small businesses lose their position in the marketplace with a loss of jobs. Some of those who lose out may be family-run businesses or individuals running a service for a Department or Government agency. It is difficult for them to compete or to get into the market. In some cases the State may be their only customer. We must find a way of engaging with the micro-businesses that are feeling the pinch in regard to the procurement process and cannot find a foothold in that process. They cannot fight it; they are up against the State. It is State processes versus the individual. There were interesting cases recently in respect of pest control services, education and stationery. The Department must examine the outcomes of procurement business to date versus the fallout for the SME sector.

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