Mr. Ian Martin:

I have much experience on the procurement side of business. Much of the all-Irish marketplace is controlled in some way by Government procurement agencies such as health services, local authorities and vocational education committees. Recently a director of Unilever told me he reckoned up to 40% of his company’s detergent sales were through public procurement contracts for Government services. That excludes an Irish SME from the marketplace. I am involved in the first aid and hygiene business. Last Monday a trade customer informed me that he had lost five customers the previous week. There are two companies in my industry which receive nearly every public contract available. Local authorities are afraid to buy from their local suppliers which they have supported for years because of these contracts.

As I am a member of the procurement advisory body, I spoke about this matter to the Minister of State, Deputy Brian Hayes, whose attitude is that he has to get spending down, which I understand. On the other hand, the Minister for Jobs, Enterprise and Innovation is trying to increase the rate of job growth. In my case, we lost a large contract last year worth over €300,000 which forced me to let three people go.

There was a difference of €10,000 in the contract price, but the cost of the disruption to our business was much more than €10,000. It is hitting the small business operator. I agree with Deputy Lawlor's point because I hear it daily in the country. I know in my industry people are being destroyed by what is happening with procurement. Much of the procurement is based on price. I understand that price is a factor, but price also brings quality. There is a cost involved when one chooses a product. If we take the example of what we do in our own homes, one will not necessarily buy the cheapest toilet paper. One will buy a reasonable quality product. Quality actually lasts longer. Two-ply tissue lasts longer than one-ply tissue. That is the reality in the market place.