Dáil debates
Wednesday, 23 January 2013
Ceisteanna - Questions - Priority Questions
National Procurement Service
1:40 pm
Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source
To answer the Deputy's question, it was considered by my Department very carefully. My Department stands over the decision it successfully brought to the Government for approval last July. That memorandum is crucially important for the procurement space into which the Government is trying to get. There is an enormous prize to be won in this regard. A recent independent report showed the State could save somewhere between €250 million and €650 million over a three-year period through better procurement, better and more efficient buying, knowledge of markets, fewer procurers and getting the best value for money.
I wish to make the procurement agenda an absolutely crucial part of the expenditure profile in the adjustment programme in the State. This can be done and the Government can get procurement to a much better space. However, this requires people who know the business and does not require people sorting out local suppliers, just because they know them, at jacked-up prices. Such quality procurement, as other small states have done, is what is required and this State can get there. I will make the following point carefully. Local public service bodies, be they schools or anyone else, which can get a better price than the price in the framework that we have negotiated centrally, thereby taking out major savings on administration, can use that better price. However, they should be able to explain to my Department, the National Procurement Service and to local procurers that there is justification for so doing.
If a better price can be attained, it can be used. As I said when I brought the issue to the Cabinet at that time, these frameworks should be allowed or it should be explained why they are not being used. The problem seems to be policy related and there is not enough implementation, but I will change that.
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