John Whelan (Labour) | Oireachtas source

I am grateful to the Minister of State for coming to the Seanad this afternoon to respond to what I have to say about local authorities being allowed to put out to tender the contracts to stock Irish libraries. I was appalled to learn that many similar contracts are being farmed out to overseas companies and multinationals at a time when we should be taking all opportunities to sustain and support Irish small businesses and jobs. While the problem I am highlighting is particularly apparent in that instance, it applies to all other businesses. This issue has been raised time and time again by Chambers Ireland, the Small Firms Association and the Irish Booksellers Association. I will refer to a case in point. Large UK-based multinationals are undermining Irish publishers, which are small businesses, by virtue of being able to tender in a fashion that puts Irish businesses at a distinct disadvantage. For example, they use wholesale discounting that cannot be matched in any sustainable way by Irish businesses in the short term.

The Small Firms Association, in conjunction with other stakeholders in the Irish small business sector, recently published alarming data which illustrate that 28% of Government contracts under procurement and tendering procedures are now being awarded to overseas companies. That is the equivalent of business worth €3.5 billion, which translates into the sustainability of 42,000 jobs. I know the Government is putting all its energies into the Action Plan for Jobs and its job creation efforts. I put it to the Minister of State that, in the first instance, the Government must at all times try to support and sustain existing jobs as a priority. Once they are lost, it is hard to get them back.

There are some really harrowing personal stories behind what is happening in the whole procurement and tendering sector. As we speak, people are losing their jobs because Irish firms cannot compete with the multinationals under the procurement and tendering criteria that are applied. I know we cannot go back to the age of protectionism. I know we must comply with EU regulations. It was suggested to me that one never sees an Italian policeman driving a Peugeot or a French policeman driving down the street in a Fiat. Ireland seems to be far more zealous and vigorous when it comes to embracing EU rules and regulations, to our own disadvantage and to the disadvantage of Irish businesses. I appeal to the Minister of State to impress on the Government the need to examine why this is the case. Why can we not adopt a far simpler system of procurement and tendering which is more compatible with the Irish small business sector and more conducive and strategic in terms of supporting Irish jobs?