Dáil debates

Tuesday, 13 November 2018

Saincheisteanna Tráthúla - Topical Issue Debate

Public Procurement Regulations

6:45 am

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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The concept of tendering for State contracts is, in principle, worthwhile, placing an obligation on the Government to get the best value for money for taxpayers. Several issues have arisen, however, in how the State's procurement process has been implemented. Ireland is a small open economy and has vulnerabilities that other European countries do not have. The size and scale of our economy has put Irish contractors at a distinct disadvantage in the process.

It has been brought to my attention that a product supplied by a company, which was successful in winning the tender to supply the Garda training college in Templemore, County Tipperary, does not match the normal standards for food labelling. The contract was won at the expense of a local producer who had supplied the college for many years. The product in question is a roasted coffee product. The following issues have been presented to me which are of serious concern.

The product is branded to suggest that it is from a company registered in Ireland. However, there is no such company registered in Ireland, despite the packaging implying so. The packaging implies that the product is roasted in a specific town in Ireland. I can emphatically state that there is no coffee roasterie in that town. There is a minimum of three different types of coffee making up this product but the packaging does not state this. There is no labelling as to the origin of these coffees. A high percentage of the coffee from the sample pack tested was damaged, under-roasted and of low quality and consistency. A list of ingredients is not labelled on the sample pack examined. This is one product from one supplier. I am offering the Minister of State, Deputy Stanton, evidence that normal standards of food labelling and safety have not been adhered to.

This raises serious concern about the effectiveness of the State's procurement process and demands that the particular incident be properly investigated. On this evidence alone, it is clear the process is completely unable to guarantee the same standard of food which local companies supplied for generations.

I have raised this issue on at least four occasions over the past two years and it is now a matter of urgency that we see real change in the national procurement process. No account is made in the tendering process for the local supplier with generations of experience in the supply of quality, safe foods to the public sector. I can also quote a furniture company, an office stationery company and a building company in my home town of Thurles which have been frozen out from supplying the public sector. They offer well-paid sustainable jobs in our communities and can match price and service, yet the Government says "No thanks". The Government believes some big international supplier can do better than our indigenous companies but it is wrong. These big international suppliers cannot do it better than our own local Irish suppliers. In this case, the big international companies are supplying a substandard product with very questionable labelling. I remind the Minister of State that this is a food product that we are talking about. In this case alone, the State's procurement process has got it terribly wrong. No one can be expected to believe this is an isolated incident. With the hundreds of thousands of products being supplied to the public sector daily, there is every chance that this is not the only low-quality product being provided. I argue that the business model of these international suppliers involves replacing quality products with cheaper substitutes to secure contracts. The Government is being penny-wise and pound-foolish.

I ask the Minister of State formally today to begin a root and branch review of the process and to put at its heart quality of product and service throughout the tender process. I ask the Government to show some support for our local companies and to stop hiding behind EU regulations. For once, let us support Irish jobs in Irish companies.

6:55 am

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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On behalf of the Minister for Justice and Equality, Deputy Flanagan, I thank Deputy Cahill for raising this matter this evening. As the Deputy will be aware, the Garda Commissioner is responsible for carrying on and managing the administration and business of An Garda Síochána and the Minister has no direct role in the management of the finances of the Garda College in Templemore. It is important to note that the Commissioner is the Accounting Officer for the Garda Vote and that expenditure in relation to the Garda College and the procurement procedures operated at the college are primarily his responsibility. The Deputy will also be aware that the Garda Síochána's internal audit report on financial procedures in the Garda College, which was completed in February 2017, raised serious issues in relation to governance and accountability in the college. Oversight of the implementation of the recommendations of that report was referred to the Policing Authority by the Minister's predecessor in March 2017.

One of issues of concern highlighted by the report was that the manner in which goods and services for the college were procured was not in accordance with public procurement legislation. The Commissioner accepted the findings set out in the report and put in place arrangements to ensure that its recommendations were implemented. The Commissioner has advised that, upon a request from An Garda Síochána, the Office of Government Procurement issued a request for tenders on 16 November 2017 via the eTenders procurement portal to establish a single supplier framework for the provision of goods to the college. To encourage small businesses to bid for this contract, the competition was divided into 13 product lots. The Minister is further informed that the request for tender for the food contracts for the Garda College restaurant clearly outlined that all labelling of the goods must comply with national and European food labelling requirements. The tender also included requirements in relation to HACCP and food safety compliance. The Minister is advised that the procurement process is complete and that contracts have been awarded to the successful tenderers.

The Policing Authority has assessed the action taken by An Garda Síochána regarding the recommendation in the audit report dealing with procurement at the Garda College and has deemed it completed. The Garda Commissioner has advised that the principal administrator at the college continues to ensure that the procurement of all goods and services is in line with public procurement procedures.

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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While I thank the Minister of State for his reply, the procurement policy operated by State bodies is the Government's responsibility. The fact of the matter is that small local companies are being frozen out. Templemore is just one example of what is, unfortunately, happening in the vast majority of tendering processes nationally. I can set out other examples besides the issue with the quality of the coffee which I cited in my opening statement. The quality of products being sourced is not up to the standard that obtained previously in the depot. There were 14 or 15 local companies supplying products to the depot previously and they provided valuable local employment which was essential to the local economy. All bar one lost out in this procurement process, however.

I have seen the tender process that was forced on these small companies. It was not possible for small companies to do what the procurement process demanded. It was extremely expensive and required the expenditure of a great deal of money in a lot of cases. Questions were also asked of suppliers which it was unreasonable to expect them to respond to. No small company could deal with them. One example relates to a local fruit company which had been supplying the depot for over 30 years and was asked what it would do in the event of a storm and about its capacity to source product. During the storm event which took place a couple of months ago, however, it was ironic to find the depot having to turn back to local suppliers to source supplies for the students and employees of the college. The procurement process which has been put in place renders it impossible for small local companies to win contracts.

I make the following point forcefully to the Minister of State. We now have proof that the product being supplied to one particular State institution is of an inferior quality by comparison to what was supplied previously. I am sure the same will apply elsewhere. This warrants investigation and I ask that one takes place.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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The disappointment of local businesses which previously supplied goods and services to the college but were not successful in the recent tender process is understandable. I am sure the Deputy will appreciate the obligation on the Commissioner to ensure that best practice under public procurement legislation is followed in the sourcing of goods and services at the Garda College. However, the points the Deputy makes in his contribution and the concerns he raises are serious and an investigation is merited. I will therefore ask the Minister, Deputy Flanagan, to investigate this matter.