Dara Calleary (Mayo, Fianna Fail)
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44. To ask the Minister for Public Expenditure and Reform the progress in implementing new guidelines on the public procurement process that will allow small and medium-sized enterprises, SMEs, to compete fairly for contracts; the method his Department will use to monitor adherence to the guidelines; the penalties that will be imposed if the guidelines are not followed; and if he will make a statement on the matter. [40451/17]

Dara Calleary (Mayo, Fianna Fail)
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Procurement is still a mystery to many SMEs. It has considerable potential. The Minister has published new guidelines on public procurement processes, but what plans has he to publicise them and, more importantly, ensure that they are implemented and adhered to in order that SMEs are protected by them and know their way around the process?

Patrick O'Donovan (Limerick County, Fine Gael)
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I thank the Deputy for raising this question. I can give him a more comprehensive answer shortly.

In the weeks since being appointed to my role with responsibility for procurement, it has been my concern and that of the Government that we be cognisant of the impact that any procurement guideline, regulation or rule has on the SME sector. On this basis, the Department's SME leadership group, which is chaired by me and includes representatives of the SME sector, will be convened within the coming weeks.

I have met the Office of Government Procurement, OGP, a number of times and am due to do so again shortly. I am interested in hearing directly from SMEs, which is why I attended - I am sure that the Deputy has as well - the roadshows held by the OGP across the country. More are planned where there is an opportunity for the OGP to engage directly with the SME and other sectors. I am anxious to hear from people like the Deputy about where they believe improvements can be made without impacting on the thrust behind the concept of procurement.

Dara Calleary (Mayo, Fianna Fail)
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I thank the Minister of State for his response. Holding a roadshow in Leinster House - perhaps in the AV room - would be worthwhile so as to brief Members of both Houses.

I have written to the Minister of State about an issue that has come to my attention, that of small, independent book publishers that are effectively excluded from library tendering. Library tenders are now being handled by large, wholesale providers. They can receive significant discounts from publishing houses whereas small, independent book publishers cannot. Due to the way in which public procurement is handled currently, they are unable to access the library network. Included among them are local society groups that publish local histories and bring a local flavour to the library service, and Irish companies that publish on behalf of well-known authors and find that, due to the procurement process, they cannot access the library network unless they provide unsustainable discounts.

Many sectors are affected. The Minister of State might get a chance at some stage to organise a clinic in the AV room. All Deputies have cases of people who are struggling with procurement. Importantly, SMEs are still struggling and are not getting the opportunities that are available. Such a clinic might assist us all in matching them with opportunities.

Patrick O'Donovan (Limerick County, Fine Gael)
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As the Deputy is probably aware, the majority of procurement contracts awarded by the State in that sector go to Irish companies, which sustains jobs across the country. That is important.

The OGP takes a balanced approach to delivering value for the taxpayer and ensures that public procurement is accessible by all businesses, including the SME sector. This is done in a number of ways, including: undertaking market analysis prior to tendering to better understand the range of goods and services on offer, market developments and innovation, what commercial models are available, the competitive landscape and the specific capabilities of the SME sector; setting proportionate eligibility requirements, for example, insurance and turnover, to support SME participation; breaking tendering competitions into smaller lots, for example, by sector, region, value and so on, to encourage the SME sector to participate and align with the capacity and capability of the marketplace; actively engaging in a range of events to help foster awareness of, and encourage engagement in, the public procurement process; and supporting supplier awareness of the Government's national tendering platform, .

Circular 10/2014 on initiatives to assist SMEs in public procurement, issued by my Department, sets out the policy in this regard. The policy is reiterated in the public procurement guidelines issued in July.

The SME advisory group, which is chaired by me in accordance with the programme for Government, meets on a quarterly basis to address issues concerning SME participation in public procurement. Representatives include the OGP, the Department of Business, Enterprise and Innovation, Enterprise Ireland, InterTradeIreland, the Competition and Consumer Protection Commission, IBEC, the Small Firms Association, SFA, the Construction Industry Federation, CIF, Chambers Ireland and the Irish Small and Medium Enterprises Association, ISME.

It is a matter for individual contracting authorities to ensure that their public procurement function is discharged in line with the procurement rules and procedures. The Public Service Spend and Tendering Analysis Report 2015, published by the OGP and launched by me on 19 September 2017, indicates that the majority of the spend analysed is with SMEs.

The OGP will continue to work with industry to ensure that the winning of Government business is done in a fair, transparent and accessible way and Government procurement policies are business friendly.

I take on board the Deputy's suggestion about doing something for Members in Leinster House. I will get my office to make arrangements regarding a suggestion of my own, namely, bringing the Deputy and other Opposition spokespersons on procurement together for a full engagement with the OGP at its offices and to meet the respective tendering groups.