Pat Gallagher (Donegal South West, Fianna Fail)

I understand the principle behind the amendment and the case being made by Senator Bannon, but I wish to outline the reasons I cannot accept it. We had a long discussion on this amendment on Committee Stage and while peripheral issues were raised at that time, I understand the substantial issue has been dealt with fully.

I reiterate my view that the insertion of a provision restricting agreements under the section to fixed charge agreements is unnecessarily restrictive and could pre-empt any ongoing development in public procurement policy. I point out to the House that the introduction of fixed charge agreements would pose the question as to the number of tenders we might receive. There may not be too many and competition is the spice of trade. It is important to have a competitive edge in the free market which ensures that we get the best price.

This Bill is not intended to address public procurement policy and inclusion of a requirement for fixed cost agreements in subsection (2) may lead to a lack of synchronisation between section 50 and what is current public procurement policy. I cannot countenance a situation where procurement policy for water services is out of line with other areas of public procurement policy. It must be applied in a uniform manner and not in a piecemeal way across the different sectors. Regardless of the changes that may be needed in public procurement policy, this Bill is not the appropriate vehicle through which to undertake it. It would have to be dealt with at another time when decisions are being taken on any alterations to public procurement policy. I understand but do not share the Senator's concerns for controls over costs as they are exercised within the framework of a uniform public procurement policy. If this amendment were accepted, it would mark the end of pc sums and contractors would not tender. Public procurement policy has served us well in the provision of water services. This Bill is not the vehicle for any changes, as they will only occur if the public procurement policy is amended.