Mr. Robert Watt:

I will ask Mr. Paul Quinn to come in. In any different sector, businesses might be dependent on public sector contracts for a certain share of their business. We do not know, but in some cases that they might be so dependent that if they lose a contract, the business will close or they will lose jobs. That might happen in cases. In anything we do where we have had to reduce spending or close the fiscal deficit, any of those initiatives has the potential to impact upon demand in the economy and on jobs and have a negative economic effect. That negative effect can be seen in impact on tax revenues or it can be seen in the impact on people who lose their jobs and are unemployed. There can potentially be a negative effect, but we are trying to manage it as best we can.

When we discussed this previously at this committee, we mentioned that this programme will involve difficulties. However, as we mentioned to Deputy Fleming, we all know the State traditionally has been procuring in an inefficient way. We are determined to get value for money for taxpayers' money and to procure in the most professional way possible. As part of what Mr. Quinn is doing with his office, we are professionalising procurement across the system. We are ensuring we have the best possible expertise in negotiating the best possible contracts. This will have an impact and it will impact on certain businesses. We are doing everything we can to minimise the effects, but I am not going to say there will be no effect because that would be untrue to say.