Katherine Zappone (Independent) | Oireachtas source

I welcome the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, and his positive update on the Action Plan for Jobs. One fact that I notice he has left out of his positive update relates to the job creation exchange he has had with Washington State, from where I come. The Minister hosted the state's governor, Ms Christine Gregoire, in the summer and has been on a trade mission to Washington. I compliment him on this work and the jobs that have resulted from these exchanges. I hope he continues to operate in this way.

The Minister for Public Expenditure and Reform, Deputy Brendan Howlin, has implemented substantial reforms in public sector procurement since taking office. We see reforms in public procurement in the centralisation of many of these functions in the National Procurement Service. There are many benefits attached to this system, including savings to the Exchequer. Are we fully utilising the job creation possibilities of this system, or are we pursuing a short-sighted cost-saving exercise? For example, next summer mandatory contracts for stationery supplies for non-commercial public sector organisations will come on stream. I have been approached recently by a school in Tallaght that falls into this category. It is concerned that it will have to cease the purchase of stationery supplies from a local supplier from whom it has purchased its supplies for the past 18 years at competitive prices. Instead, it will have to purchase stationery supplies from the company the National Procurement Service chooses. The local supplier employs three people and I am one of his clients. Their jobs may be at risk as a result of the introduction of centralised contracts. The head of the Small Firms Association recently told the Oireachtas joint committee on jobs that many small and medium-sized enterprises were having difficulties under the new procurement system because a central procurement system tends to favour the larger business and much of the process is focused on price. I am aware that the Department has several initiatives that focus on assisting SMEs in competing for contracts, including informing them how to submit tenders and breaking down contracts to make them more accessible. However, a complementary approach could be taken by requiring procurers to make provision for social benefits when awarding contracts. This is permitted under EU law and in place in many EU member states. Deputy John Lyons has introduced a Bill on procurement that would require a percentage of tender assessments to consider the social benefits. Many EU member states not only allow but require public procurers to take potential social benefits into account in a variety of circumstances. According to European Commission research, over half of member states have references to the promotion of social responsibility in public procurement. However, Ireland is not among them.

The National Procurement Service?s annual survey made two recommendations on how the promotion of social benefits consideration could be improved. First, it stated procurers should take into account factors that would contribute to the long-term sustainability of local economies when creating and awarding national contracts. Second, there could be greater participation by social enterprises in delivering public services. I have raised the issue of social enterprise with the Minister before when we were feeding into the Action Plan for Jobs. I also note that the Minister of State, Deputy Sean Sherlock, has ordered a detailed study from Forfás of the actions required to be taken by the Government to create jobs in the social enterprise sector.

Will the Minister comment on both of these issues? What is the policy of the Government on national procurement and ensuring the sustainment of local economies? Are policies heading in the direction of putting the three people in Tallaght to whom I referred out of business? When will the study from Forfás be completed?