Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank Deputy Grealish. Strategic public procurement can play a key role in responding to societal, environmental and economic challenges. Therefore, the inclusion of strategic public policy considerations in procurement processes is a key feature of the programme for Government.

The Office of Government Procurement, OGP, has been actively engaged in putting in place the necessary process and policies that are designed to encourage SME access to public procurement opportunities. In this regard, the OGP developed circular 10/14, entitled "Initiatives to Assist SMEs in Public Procurement". Under the circular, public bodies are required to advertise all contracts for supplies and services with an estimated value of €25,000, exclusive of VAT, and upwards on eTenders, the national tendering platform. This means that as many businesses and SMEs as possible are aware of tendering opportunities. Indeed, the latest analysis carried out by the OGP indicates that 94% of procurement opportunities are secured by Irish businesses, with more than 50% of those being classified as SMEs.

I understand that an increase in the public procurement threshold was considered by the SME advisory group. The group meets on a quarterly basis so that the voice of SMEs can be heard by the Government and the OGP. The group's membership consists of officials from the OGP, the Department of Business, Enterprise and Innovation, Enterprise Ireland, InterTradeIreland, IBEC, the Small Firms Association, the Construction Industry Federation, the Irish Small and Medium Enterprises Association and Chambers Ireland. The issue was discussed, with members being invited to submit their views to the OGP. It was clear from the discussion and the formal views expressed that the majority of members were against increasing the advertising threshold. The OGP also took account of analysis of data on eTenders in its findings and decided in June 2018 that, taking openness and transparency into consideration, the current advertising threshold of €25,000, exclusive of VAT, should be maintained.

The thresholds for advertising on eTenders will be kept under review in light of the impact on operational efficiency, value for money and accessibility to business opportunities, particularly for the SME sector. The OGP is continuing to monitor the issue in consultation with the SME advisory group and will continue to engage with business proactively in order to enhance the significant measures and strategies already in place to support SME access to public procurement opportunities.

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