Dáil debates

Tuesday, 22 January 2013

Other Questions

National Procurement Service

3:00 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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To ask the Minister for Education and Skills if he will amend proposed procurement rules requiring schools to purchase stationery from one national supplier in order that they may purchase from local stationery suppliers who are able to offer similar or better value; and if he will make a statement on the matter. [2718/13]

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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The national procurement service is focused on developing centralised arrangements for the procurement of goods and services used commonly across the public service nationwide. The benefits arising from these central arrangements include cash savings, administrative savings from reduced duplication of tendering, greater purchasing expertise, improved consistency and enhanced service levels.

Within the education sector, the mandatory arrangement relating to stationery currently applies to the higher education and VEC sectors. I understand that the national procurement service is working on a new contract for stationery which will be in place from April 2013.

My Department is working on a procurement circular for schools and the content of this will be the subject of discussion with the national procurement service and the school management bodies. I understand that officials from the Department of Education and Skills and the NPS are meeting on 28 January to discuss these matters further.

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)
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I have a specific personal interest in this matter. I am sure the Minister has received representations from different parts of the country already. This move is causing considerable concern among small stationery retailers in towns and villages throughout the country for whom a substantial part of their business is supplying their local schools and educational institutions. If this proceeds as planned in April, it will remove a very significant part of their trade. Last week the Cabinet met to discuss the jobs initiative. Although we need to ensure we get greater savings in procurement, we also need to consider the wider impact of every policy measure we take. This proposal will take money from existing small businesses in towns and villages for national objectives and in many cases there may not be any saving. We are missing out on employment and economic activity in those areas. Having spoken to stationery suppliers, I know that the local suppliers are able to provide as good value and in many instances better value than what is being agreed with the national procurement service. The procurement guidelines provided to schools should certainly provide a list of what is available from the national central supplier, but at a minimum if schools can show they are getting equal or better value from their local suppliers, they should be allowed to purchase from them. In that way we can ensure we do our utmost to keep that economic activity and those small businesses operating at local level.

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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I fully understand the Deputy's point of view, particularly where it relates to a multiplicity of suppliers, for example, in the area of stationery provision.

This issue, among others, will be discussed at the meeting on 28 January between the Department and the national procurement service. It is different from electricity or energy suppliers, of which there are, perhaps, only one or two providers in the first instance.

I have no difficulty with what the Deputy has just articulated, namely, that where the procurement service sets the going rate for the cost of a particular commodity at X and that commodity is a multiple use type commodity, such as extra supplies of stationery, and a local school can demonstrate that it can purchase that commodity locally at the same rate or lower, then it should not be compelled to use the centralised facility. The purpose of this is to ensure efficiency in the cost of procurement rather than the allocation of the contract to a particular provider of the service.

We will no doubt come back to this topic as I have received the type of representations articulated by the Deputy. The picture will become clearer after 28 January. On the principle of a benchmark price being set for a commodity regularly used by the education system and that price being met by an alternative supplier who is providing employment in the locality, I do not believe anybody could argue with that.

3:05 pm

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)
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I appreciate the Minister's response and his willingness to engage on this issue to ensure a common sense approach is taken to it. I acknowledge that savings can be made in terms of national procurement deals. However, it is important the Minister is willing to engage with small business providers in this regard and that it is made clear in the departmental guidelines and circulars to schools that they have the option to continue to work with local suppliers providing equal value. If this is not clarified it will lead to schools adhering only to the national guidelines. It is crucial this is addressed appropriately. I welcome the Minister's comments and ask that he follow up this matter to ensure it is brought to a sensible conclusion.

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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I will keep a keen interest in this matter, as it is one which concerns me. I will keep the Deputy informed.