Dáil debates

Wednesday, 1 February 2012

 

Local Authority Contracts

10:30 am

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)

I have gained some experience in the area of procurement in the past eight months and these issues have been raised with me as the Minister of State with responsibility for procurement. Evidence is the key issue, however. Without evidence, we have no means of checking the facts and bringing these matters to a conclusion.

Of course, Irish businesses win contracts abroad as well as at home. International businesses domiciled in other countries win business in this country on a continuous basis. I recently pointed out at a conference at which I spoke that close to 70% of SMEs in this country are not even registered on eTenders. How can they possibly know about the contracts if they are not even registered to tender for contracts?

Procedurally, there are very clear international European guidelines as to how companies contract and win this business. It is a key objective of the Government to make sure Irish SMEs can pitch for and win this business. Under circular 10/10, issued by the Department of Finance two years ago, we encourage SMEs to come together to pitch for business. Any contract over €25,000 is now up on eTenders. I use this opportunity on the floor of the House to encourage those Irish businesses, first, to register for eTenders, second, to pitch for the business and, third, to work with other SMEs as a means of getting this business.

I pointed out that we have national framework agreements in place. This is to protect the taxpayer and to get the best possible price and quality. Nonetheless, I take the Deputy's point. Some of these cases involve international businesses which win contracts but actually have Irish sub-contractors in place. It is much more complicated than some associations like to present.

I take very seriously the Deputy's remark that 70% of the road marking business is going to businesses outside the country. I will investigate that matter thoroughly and come back to the Deputy on it. If the veracity of that stands up and it is a fact, as he suggests, and I do not doubt him for a moment, there is a huge question mark over why Irish businesses are not winning these contracts or pitching for these contracts in a manner which ensures they offer the best and most efficient price for the taxpayer. I thank the Deputy for raising the matter.

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