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 Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

The Chairman has raised a very important point. We are undergoing a significant change in regard to how the State procures services. In a time when we were spending less money because of the crisis, what drove us all the time was the bottom line. That was the correct thing to do but, now that we have found some breathing room as a result of these practices, it cannot be just about the bottom line for the State. We must consider how small businesses work in different parts of the country. We have to think of social clauses in some of our procurement contracts. We also have to be mindful of the EU law under which we operate. Only about 7% of business goes outside the country. I know there is a perception in some parts of the country that a lot more contracts are being won by foreign companies, but that is not the case. When one looks at the statistics in terms of the business that Irish companies are winning abroad, we are doing better. We are doing better abroad by being able to access those markets, such as France and other markets in the EU. That is good for small businesses. I am meeting with Enterprise Ireland tomorrow to discuss this further.

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