Ms Clare McGrath:

No, that was the number of contracts placed by the National Procurement Service. The next question related to a comparative analysis. A recent report examined potential savings on procurement of approximately €9 billion, excluding capital. The OPW’s own Vote is very small, at approximately €392 million. That includes rents. The amounts are to be found elsewhere in the public service. We place contracts on behalf of other public sector bodies through the National Procurement Service. The single biggest one of those relates to energy. The others are much smaller than that. There is much more public procurement in other sectors, such as the health sector or local authorities. When the State is procuring, many people are making decisions because there have been central cuts to allocations. It creates tension that could even become a conflict between obtaining value and getting the most for one’s euro and at the same time the impact that will have. One must balance both of those. Different bodies are responsible for setting targets and policy in that regard. The OPW, as a procurer, seeks to maximise value but also to spread it. We are conscious of that within the construction area. In certain instances one looks at where one can leverage the State’s covenant to get best value for the State.

Social clauses are a consideration. The Department of Public Expenditure and Reform is considering changes to directives and the inclusion of social clauses within contracts. They may well be included within the capital works framework. The Department will provide the lead in that regard and we will give effect to whatever is decided on the matter, but we do not have social clauses at present.

On the 15 days, I cannot make any comment on a semi-State body. The OPW is 90% compliant with the 30 days. We are 65% compliant, and increasing, on the 15 days payment on the construction side. We seek to continually improve on that. Issues usually arise on elements of the contractual relationship. We have not been in court over prompt payments. In terms of subcontractors, the privity of contract is with the main contract. I understand Senator Quinn’s Bill on the payment of subcontractors has gone through Second Stage and I believe it will go to Committee Stage after Christmas. Issues arise about the turnover in that regard. That will apply to the private sector and the public sector and it must be expedited. I am not aware of issues arising in the OPW with payments by main contractors to subcontractors.