Oireachtas Joint and Select Committees

Thursday, 3 April 2014

Public Accounts Committee

2012 Annual Report of the Comptroller General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Chapter 3 - Financial Commitments under Public Private Partnerships
Chapter 4 - Vote Accounting
Chapter 5 - Vote Budget Management

1:50 pm

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

It might not be a case of predatory pricing but that a tenderer might be of such a scale that it can absorb losses in one cycle, thereby logically seeing off smaller entities that go out of business, to put it crudely. When the procurement office considers an abnormally low price, it might also consider the scale of the organisation tendering and see that it is a multinational, which can absorb this. I would be concerned if that were the only prism through which the office examined a bid. Someone who knows the industry might consider, for instance, what is charged for a whiteboard and say there is no way the bidder could come in that low. It seems insufficient to base the assessment of the pricing strategy on whether a big concern can deliver the service. It could be that it can but meanwhile it has caused damage elsewhere.