Oireachtas Joint and Select Committees

Wednesday, 4 October 2023

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

The Circular Economy: Discussion

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

Government procurement is a huge part of the market. If the Government decides to start spending its money in a particular way, that can affect the market overall. Second, the Government should be leading by example. If the State is not spending its money in a circular way but trying to tell the rest of society, including private society, individuals, businesses and community groups, that they should follow circular economy principles, it is not convincing for people. The State needs to lead by example.

The Deputy said that public procurement works by always awarding the lowest bidder. I would take issue with that. There are three factors in classic procurement, the first being to get a good price for the State, the second being to get good quality, ensuring the goods are up to spec, and the third being to spend the money transparently so there is no suspicion of corruption and favouritism. Added to these in recent years has been the idea of strategic procurement, meaning that when the State is buying something, it does it in a way that advances its strategies and policies. For example, one must ask whether social procurement helps the local area, reduces unemployment in the area or provides skills training for people working in the area. With green procurement, one must ask whether it is good for the environment. The ability to put those factors into the conditions and criteria for a bid is supported by European law. It is normal practice across Europe, and it is up to me to promote that and ensure procurement takes it into account.

We have a green public procurement strategy that dates back to 2012. I have updated it. The Department of the Environment, Climate and Communications has worked with the Office of Government Procurement to come up with a new green procurement strategy. That is out for public consultation. The aim is to ask the public sector not to rule out renovated, upcycled or repaired equipment when buying. You do not always have to buy new. Up to now, some Departments have had a policy of buying only new equipment. That is obviously contrary to what we are trying to do. What I found when I looked into this was that the private sector was ahead of the State in some areas. I found there were parts of the private sector that were very happy to buy renovated ICT equipment, for example, but this could not be sold to a public body or to some public bodies. Our new strategy, the green public procurement strategy, is out for public consultation.

I am enthusiastic and happy that it is out there. I am looking for comments on it from the public, businesses and community groups on whether they believe it is a practical approach. Public procurement has to support a circular economy and will continue to do so.

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