Dáil debates

Thursday, 7 June 2012

Priority Questions

Public Procurement

7:00 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Question 2: To ask the Minister for Jobs; Enterprise and Innovation the steps he has taken to implement the findings of the procurement innovation group entitled Using Public Procurement to Stimulate Innovation and Small and Medium Enterprise Access to Public Contracts, as published by his Department. [27559/12]

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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The procurement innovation group's report and the accompanying 10 Step Guide to Smart Procurement and SME Access to Public Contracts were both published in July 2009. Some of the recommendations were incorporated subsequently into the Department of Finance's current guidelines to public contracting authorities which are designed to ensure tendering processes operate in a manner that facilitates increased participation by SMEs. These include the lowering, from €50,000 to €25,000, of the estimated value of contracts to be advertised on the e-tenders website, the splitting of larger contracts into lots, and the communication by contracting authorities of future procurement plans by issuing prior information notices. None the less, it is clear that more effort must be made to ensure the guidelines are applied by procurement officers in contracting authorities, and work is under way to ensure this is happening.

The action plan for jobs contains a number of specific measures designed to facilitate an increase in SME participation in the tendering process, and my Department is working collaboratively with key players such as the Department of Public Expenditure and Reform, the National Procurement Service, NPS, Enterprise Ireland and InterTradeIreland to deliver the commitments as set out in the action plan.

In addition, the Department chairs a steering group bringing together the main stakeholders in this area. Under the aegis of the steering group, Enterprise Ireland, the National Procurement Service and InterTradeIreland are working on a number of initiatives to boost SME participation in the public procurement process, including, for example, the establishment by Enterprise Ireland of clusters of SMEs to work with contracting authorities develop innovative supply chain solutions. The aim is to establish a level playing field in the area of public procurement to facilitate increased SME participation.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Today's figures from the CSO are frightening. They show there are 18,000 fewer people in the workforce in the first quarter of this year compared with the last quarter of 2012. They also show an increase in unemployment to 14.8%. That is despite the fact approximately 70,000 people are emigrating these shores annually.

Today marks the 450th day in government for the Minister, and that is his record. It is a damning one in terms of the lack of work that has been done on job creation. Public procurement is directly related to job creation. Yet again, this country has one of the worst records in Europe on public procurement. The report to which reference was made in the question has been published since 2009 and by all appearances it has been gathering dust on shelves since then. A total of 22.8% of contracts awarded by the State were to companies outside the State. The European average is 3.4%.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Could I have a question from the Deputy?

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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The major economies – Italy, Germany, France and Spain - are all lower than that. It is a scandal at a time of severe economic recession that so much public funding is going abroad. We have seen how Balfour Beatty won the Bord Gáis contract. Will the same thing happen with the children's hospital? The time for talking is over. Will the Minister of State set targets for the agencies under his remit for public procurement delivery within the State?

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Specifically on the issue of public procurement, I refer the Deputy to the action plan for jobs. Actions 3.49 to 3.54, inclusive, relate to pre-qualification criteria, the establishment of a mechanism to allow SMEs to engage with contracting authorities on issues of concern, the establishment by Enterprise Ireland of advisers and mentors to help client companies to prepare better public procurement opportunities, encouraging more SMEs to register on the Government's e-tenders website to enable forthcoming procurement opportunities to be brought to their attention, encouraging a more flexible approach to tendering by focusing on innovative solutions to procurement needs rather than specific products or services, and identifying a number of key procurement projects that will provide subcontracting and supply chain opportunities for SMEs.

In terms of specific actions, a round table discussion on the advantages of innovative procurement through the procurement innovation initiative organised by the Department took place on 2 April 2012. It was attended by senior procurement officials in public bodies and by the Minister, Deputy Bruton. A number of SMEs presented examples of innovative solutions they are already providing to public bodies. Some public bodies have indicated specific, upcoming procurement projects that would be suitable for the procurement innovation initiative. They included the Railway Procurement Agency, RPA, the Department of Defence, the Health Service Executive, HSE, An Post and the ESB. Given the time constraints I will refer the Deputy to the specific actions in that regard.

InterTradeIreland also organised popular "Go-2-Tender" training workshops. The workshops give SMEs the skills to tender successfully for public sector contracts on an all-island basis. Three were held in the past three months, involving more than 70 SMEs, including one held in Cork. A further three workshops are due to be held in Enniskillen, Armagh and Waterford before the end of July. An advanced "Go-2-Tender" workshop was held in April-May and another is planned for later this year. There is constant engagement by Enterprise Ireland with contracting authorities to raise awareness of innovative ideas and capabilities of SMEs to provide innovative solutions to their specific needs. We have moved well beyond the 2009 report, and the action plan for jobs has clear action deliverables in terms of public procurement.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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The next question is No. 3 in the name of Deputy Finian McGrath.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Am I not entitled to ask a supplementary question?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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No, the six minutes has expired. There is a six minute limit for each question.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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I did not get a chance to ask a supplementary question.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I timed it and the Minister of State took exactly two minutes for his initial reply. Deputy Tóibín took two minutes and the Minister of State took two minutes to reply to him.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Do I lose out?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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The Standing Order specifies that there are six minutes per priority question.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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With respect, should that be divided equally between speakers?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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The supplementary question asked by Deputy Tóibín was answered by the Minister of State. That is why it is important for Members not to make statements at Question Time because it uses up the time. Therefore, I asked for a question to be put. We are wasting time. The time allowed has expired.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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On a point of order-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I am sorry, but there is no point of order. I have ruled that the Deputy went over time. Deputy Finian McGrath's question is next.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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I only used one third of the allotted time.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I am sorry, but I have no control over replies.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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I only have one opportunity every month to put questions, which are of national importance.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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The Deputy spent nearly two minutes making a statement. He did not ask questions.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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The point is that I was entitled to more than two minutes.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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The Deputy is not entitled to anything.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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I am entitled to it in a democracy.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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There are four minutes allotted for supplementary questions and replies.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Must I wait until the end of July to ask my supplementary question?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Yes, that is correct.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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That is grossly unfair.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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On a point of order-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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There is no point of order. Under Standing Orders, there are six minutes allotted for each priority question, two for the Minister's or Minister of State's initial reply and four for supplementary questions and replies. How Deputy Peadar Tóibín uses the four minutes is a matter for himself. If he makes statements, he will use up most of the time allotted. If the Minister of State must reply, I cannot stop him.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Why not?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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We are wasting time and will not get through priority questions if we do not hurry.