Pat Rabbitte (Dublin South West, Labour)

The awarding of contracts by State companies under the aegis of my Department is an operational matter for the individual companies in the first instance. I have no function in this regard. The code of practice for the governance of State bodies sets out clear procurement requirements. It is the responsibility of boards to satisfy themselves that these requirements are adhered to.

EU directives and national regulations impose legal obligations on public bodies in regard to advertising and the use of objective tendering procedures for awarding contracts above certain value thresholds. Even in the case of procurement which might not be subject to the full scope of EU directives such as certain non-priority services or service concessions, the European Commission and the European Court of Justice have ruled that EU treaty principles must be observed.

The implementation of national and European procurement requirements is an important element in the achievement of value for money in the State sector. Boards of State companies are obliged to ensure there is an appropriate focus on good practice in purchasing and that procedures are in place to ensure compliance with procurement policy and guidelines. More generally, public procurement legislation in the European Union is aimed at creating a common market by ensuring free movement of goods, persons, services and capital and promoting effective competition in the internal market. The essential treaty principles include non–discrimination, equal treatment, transparency, mutual recognition, proportionality, freedom to provide service and freedom of establishment. There is a strongly implied requirement to publicise contracts of significant value to a degree which allows parties in other member states the opportunity to express an interest or submit tenders.

Information on procurement policy and general guidance on procurement matters is published by the national public procurement policy unit. This can be viewed or downloaded from the national public procurement website.

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