Pat Casey (Wicklow, Fianna Fail) | Oireachtas source

I welcome the Bill and commend my colleague, Deputy Frank O'Rourke, for his excellent work in bringing forward this important legislation. Changes in public procurement procedures, in particular, the inclusion of social clauses, do not immediately strike many people as vital, considering the chaotic times in which we are living, but a more careful analysis will show that the Bill is crucial to the reset needed if small and medium-sized businesses are to remain an essential part of the economy. As we all know, the SME sector is the lifeblood of the economy, employing over 900,000 nationally. As a businessman I know that it is the bedrock of the economy in counties Wicklow and Carlow. In towns and villages small and medium-sized enterprises are the only economic barrier between communities and total devastation.

While I accept that open procurement policies are necessary, with more than €12 billion worth of Government business available every year, it is a fact that too many small and medium-sized businesses have been frozen out of bidding for too many public contracts. I would not go so far as to suggest the public procurement rules put in place by the Government have deliberately benefited a few big players while excluding many smaller companies. That has been their effect. I know of many companies in counties Wicklow and Carlow that have been swamped by the paperwork and bureaucracy involved under public procurement policies. Not only have companies in County Wicklow been excluded from bidding for public contracts in their local areas, but even attempting to bid for them has resulted in some of the companies losing scarce financial resources. For example, during the recession, when many businesses were struggling to survive, the only contracts available in the construction industry were public contracts. However, time and again, small and medium-sized construction companies were frozen out in seeking to avail of this lifeline by procurement rules that had been designed to favour larger companies.

The Bill will allow social clauses to be included in procurement guidelines, as happens in Scotland where SME builders can be involved in public contracts. Given the need for the State to be centrally involved in the building of housing, it is vital that small and medium-sized businesses be allowed to compete for this business, thus creating a level playing field. This is a win-win for anybody who wants to defend SMEs, ensure balanced rural development and have a transparent procurement process. Other European countries have already introduced such social value clauses and it is time for Ireland to follow suit. I trust that everyone in the House will support the Bill.

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