Enda Kenny (Mayo, Fine Gael)
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Question 10: To ask the Taoiseach if there is a corporate procurement plan in place within his Department; and if he will make a statement on the matter. [9147/06]

Pat Rabbitte (Dublin South West, Labour)
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Question 11: To ask the Taoiseach the procedures in place within his Department with regard to corporate procurement; and if he will make a statement on the matter. [10200/06]

Trevor Sargent (Dublin North, Green Party)
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Question 12: To ask the Taoiseach if his Department has a corporate procurement plan; and if he will make a statement on the matter. [13069/06]

Bertie Ahern (Dublin Central, Fianna Fail)
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I propose to take Questions Nos. 10 to 12, inclusive, together.

Existing procurement policies provide for procurement of the goods and services required by the Department in a manner which seeks to optimise the value for money of the purchases concerned. It is in accordance with public procurement guidelines as set out by the Department of Finance.

There is a requirement to produce an annual corporate procurement plan as part of the national public procurement policy framework, issued by the Department of Finance in May 2005. In response to that requirement, my Department has commenced the process of developing a corporate procurement plan which will be completed this year. It is expected that the analysis and evaluation of current processes will provide an opportunity to identify and, subsequently, introduce any improved procurement practices which would assist the Department in maximising value for money in its procurement of goods and services.

Enda Kenny (Mayo, Fine Gael)
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Each year the public sector spends approximately €19 billion in buying goods and services. For years, there has been no political drive to have a more focused approach in getting the best possible deal for the taxpayers' money. In October 2004, Northern Ireland identified a three-year public sector savings target of €375 million, which was based on a new procurement initiative being applied to its level of expenditure of €2.55 billion. When one considers the amount of equipment, goods and services bought across the public sector, there must be some method——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The question refers specifically to the Department of the Taoiseach. The question the Deputy is asking would be a matter for the line Minister.

Enda Kenny (Mayo, Fine Gael)
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I know that but the Taoiseach's Department is one of a range of Departments involved. The Taoiseach's Department must purchase goods and products to supply its personnel to fulfil their functions and in that sense, it is part of the overall jigsaw. Is there a concentrated effort to manage procurement? Has a target been set for a listing of what can be bought in a more centralised manner for the public service in five years? This would be in the interests of saving money and getting best value for taxpayers' money.

Bertie Ahern (Dublin Central, Fianna Fail)
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My Department complies with the guidance on the procurement of supplies and services set out in the public procurement guidelines. The Department of Finance has issued several guidelines in recent years. The last set of guidelines was issued in 2004.

In recent times, the Department of Finance has argued that the purchasing power of all Departments must be accumulated. A Department can do its best on its own but a centralised procurement procedure, acting for the entire public sector, would see larger discounts. It is not an easy exercise but it is an important one.

The Department of the Taoiseach, like other Departments, is required to have a formal procurement planning process which is very different from the old system. The Department of Finance carried out a detailed review of the procurement processes across the Civil Service and public service, as part of the modernisation of procedures.

Computer technology allows Departments to engage more with the requirement. Responsibility for the preparation of the plan has been assigned to my Department. It must analyse its purchases, how that can be done through a centralised system and consider procurement practices and trends. The Department is doing this with the assistance of the Department of Finance which has developed a practical training course for participants.

Getting Departments to procure in a more centralised manner is a new concept. A centralised procurement process will lead to greater discounts — ten Departments procuring together will get larger discounts. While some of this was in the old procurement guidelines and EU directives, the Department of Finance is seeking a more detailed procurement plan. There is no doubt we will get better economy of scale and efficiencies through it. However, it will take some time to get it up and running. They have begun the process, however, in making all Departments engage with it. Every Department must have a plan, although some did this last year. My Department will have it finished and up and running this year. The economies of scale in my Department may not be as big as in others but we must play our part in delivering on that matter. As far as office expenditure, including equipment and information technology sections, is concerned, there must be advantages in doing so.

Pat Rabbitte (Dublin South West, Labour)
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Do I understand from that that the revision of the procurement guidelines is not restricted to the Department of the Taoiseach but operates across the board? Will the Taoiseach take into account difficulties being encountered by some newly established firms which feel they are effectively excluded by the existing procurement guidelines? For example, it is not unusual to be required by some Departments to submit an auditor's certificate for the last three years' trading. Will the Taoiseach ask that this particular question of recently established firms being given a fair shake be taken into consideration in any revision that is contemplated to facilitate new entrants and optimise value for taxpayers' money?

Bertie Ahern (Dublin Central, Fianna Fail)
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Over recent years, because of tax certificate issues they have become very strict but it is not fair on new companies trying to enter the market, so I will raise the point further. For the record, it is expected that the result of this exercise will be to identify even better methods of procuring goods and services required — in my case, by my Department. The benefit of performing a high level analysis in the overall departmental perspective will ensure that purchasing trends can be identified which may not be apparent at a micro level. Such an analysis may possibly identify opportunities for cross-departmental procurement options which will yield economies of scale and other efficiencies. It is expected that an examination of the opportunities for streamlining and gaining efficiencies in the procurement process itself will occur, especially through the use of modern financial systems and payment options. If this can be masterminded in the way it is being set out by the Department, obviously the economies of scale should be quite substantial.

Trevor Sargent (Dublin North, Green Party)
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Sometimes there is a perception of a golden circle for procurement which new companies find it difficult to break into. The Department of Finance guidelines should apply to all Departments. Has the Department of the Taoiseach taken on board some of them that come to mind? For example, I understand that the Department of Finance has recommended a training programme for executives in charge of specialised IT projects or construction contracts. Has the Department of the Taoiseach taken that on board?

As for the recommendation from the Department of Finance, will the Taoiseach also let the House know whether an individual within a Department will be allocated responsibility for all major IT and capital projects? I understand that a project manager would take the lead in ensuring that projects are developed on time, to specification and within budget. Has such an appointment been made in the Department of the Taoiseach?

I understand that performance tables have also been recommended for each Department. Is the Department of the Taoiseach included? The tables will gauge the extent of project outcomes versus contract budgets. Does the Department of the Taoiseach have people in place in line with those recommendations? While I do not think it is a Government policy, does the Department of the Taoiseach have a policy on ethical procurement given that investment does not have any ethical considerations? Surely it should be easier and more straightforward to put in place an ethical procurement policy concerning, for example, fair trade products.

Bertie Ahern (Dublin Central, Fianna Fail)
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On a number of the points the Deputy has raised, we have such policies in place. In addition, we must comply with the national public procurement policy framework, which came under the Department of the Taoiseach last summer. As I said at the outset, my Department is developing a corporate procurement plan that will have to cover all points within the policy framework. There will be designated officials but I think my Department's expenditure might not justify bringing in additional people. There are designated people in the IT area, however. We have been fortunate in that much of the work has been done in-house owing to the skills of some staff who happen to have concentrated on this for most of their careers. Therefore, there are such designated people who cover many of those issues.

We must fulfil all the guidelines under the corporate procurement plan, including examining issues such as the difficulties in securing supplies of goods and services in a competitive market, the relative expenditure on goods and services, and the total cost of individual goods and services relative to total purchasing in the organisation. All the criteria that have been set down under the Department of Finance guidelines must now be implemented on a departmental basis. We must comply with that Department's view that this is the only way to deal with such issues. I am not sure about the ethical code but I will raise the matter with my officials.

Trevor Sargent (Dublin North, Green Party)
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The Taoiseach should check it.