Brendan Howlin (Wexford, Labour) | Oireachtas source

We support social clauses and are examining how they can be applied. Social clauses have been included in the contracts we have done under the stimulus package.

Additional information not given on the floor of the House

The Government supports the use of social clauses in a manner which can address issues such as social exclusion, long-term unemployment or provide enhanced opportunities through the provision of training.

While Government is convinced of the merit in using social clauses in particular circumstances, contracting authorities should not be compelled to use them on every contract since their deployment may disproportionately impact on SME's bidding for public contracts. They are used to best effect in a targeted fashion to tackle the identified causes of inequity or deprivation.

In order to ensure that social clauses do not discriminate, it is best to use general categories of beneficiary, for example, long-term unemployed, trainees and target the social benefits through supply-side activities such as training and job-matching services. Targeted social clauses are likely to be most effective in cases where they are actively supported by supply-side actions and by monitoring and evaluation processes taken by the public body with the relevant policy remit. The inclusion of social clauses imposes additional costs to the State and suppliers in meeting the requirements and demonstrating and verifying compliance. It is imperative that such provisions are enforced and independently verified; do not adversely affect value for money; do not place additional costs on domestic suppliers relative to other potential suppliers; and are only applied to contracts of a minimum scale so that they do not disadvantage SMEs.

Unemployment in the construction sector increased in inverse proportion to the decline in activity from 2008. In response, Government set out a range of actions in Construction 2020 aimed at increasing activity and has introduced a number of stimulus packages to increase activity and employment in the sector. Social clauses are included in the various contracts awarded under the PPP element of the €2.25 billion package announced in July 2012. These clauses require a minimum percentage of the time required to deliver the contract to be undertaken by those recruited from the ranks of the long term unemployed and apprentices.

The operation of this clause has already been successfully piloted and local Intreo offices have worked closely with the appointed contractors to support the pilot initiative.

The Office of Government Procurement is currently developing guidance on the inclusion of social clauses more broadly in tender and contract documentation.

See this speech in context