John McGuinness (Carlow-Kilkenny, Fianna Fail)
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What alarmed me about the exchange earlier this morning was that those who attended indicated that if the rules did not change almost immediately, they would not be here to talk to us next year. The other alarming statement came from Mr. Noonan; I am hope I am paraphrasing him correctly but he indicated the office was not fit for purpose. That is what he said. That concerns me. The witnesses have been before other Oireachtas committees, which demonstrates that the Oireachtas is concerned about the sector. It is extremely difficult for small companies to come together, as they are competitors, and be part of a consortium to make a bid. They are a prisoner to such a system, as the price is forced downwards.

Another area of concern is the potential for job losses in the small and micro sector. They are anchored in community and the business life of a particular town of village. This cannot be just about money and we must consider social and economic consequences for rural Ireland, which is in deep difficulty now and could not sustain further job losses. The Small Firms Association this morning suggested removing the price priority and the setting of targets for SME procurement, as may be witnessed in other jurisdictions. Scotland, Wales and, to a degree, France look after small businesses in their economy and do not pay much attention to Europe when it suits. The Small Firms Association also argued to change the provisions around subdividing a contract into lots as is currently set out in Circular 10/14, as it is easier for procurers to opt out than opt in. I asked particularly about that circular and I was told it is, by and large, aspirational and does not really fit the bill for the sector we are discussing this morning. The argument was for the implementation of an appeals mechanism that would include mandatory feedback on lost tenders so parties can learn through mistakes and be open to changing the style of a process to suit the appropriate level of tendering and competition. At the same time, it should protect the SME infrastructure as we know it in Ireland.

I find it difficult to comprehend the witnesses' argument, which does not at all reflect what was said to us this morning by the other group. The meeting that has been suggested would be very important and a step forward. I am only surprised it was not suggested earlier.