Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

I am responding on behalf of my colleague, the Minister for Public Expenditure and Reform, Deputy Howlin, who cannot be here, unfortunately. I understand this question arises in the context of a procurement process that is currently being undertaken by local authorities. Activity being undertaken in that sector is a matter in the first instance for the Minister for the Environment, Community and Local Government. In addition, it would not be appropriate to comment on a live procurement process that is under way. In December 2013, the Department of the Environment, Community and Local Government launched its libraries policy, Opportunities for All, which set out a shared procurement policy in relation to the procurement of library materials. The current debate has been prompted by a competition being run by the Dublin local authorities for books. Under circular 10/14, Departments and agencies conducting procurement must perform market analysis.

I would like to comment on the broader procurement landscape. The reform of procurement across the public service is a key element of the reform programme. Public procurement savings enable public service organisations to deliver much-needed services from the tighter budgets within which they are now required to operate. Reforms are being carried out in a manner that recognises the clear importance of small and medium-sized enterprises in this country's economic recovery. The establishment of the Office of Government Procurement was a key part of the efforts to bring a more professional, whole-of-Government approach to procurement. It is driving fair, transparent and open competition in the marketplace, as well as providing better value.

Figures indicate that Irish businesses, particularly small and medium-sized enterprises, do well in winning Government business. The Office of Government Procurement estimates that more than 95% of the Government's total expenditure of approximately €31.1 billion on goods, services and works is spent within the State. In addition, an analysis by the Office of Government Procurement indicates that 75% of the 2013 spend with Irish business was with small and medium-sized enterprises. This represents an increase on 2012 levels. We want small and medium-sized businesses to be successful in public procurement. We also have to ensure there is fair, open and transparent competition. Strong small and medium-sized enterprises that have won Government business here have gone on to win business in other jurisdictions.

The recent circular 10/14 introduced business-friendly obligations on public procurers in areas like open tendering, breaking contracts into lots, lower financial qualification criteria, supporting consortia bids and requiring lower insurance, etc. The circular sets out the guidelines to be followed by public procurers when performing market analysis to ensure businesses remain competitive in the long term. We do not want to distort markets. The Office of Government Procurement continues to work closely with industry bodies like the Irish Small and Medium Enterprises Association, the Irish Business and Employers Confederation, the Small Firms Association, the Construction Industry Federation and Chambers Ireland to reduce barriers. The Office of Government Procurement continues to support supplier engagement in education through its successful Meet the Buyer events and Go-2-Tender programmes, which are run in conjunction with InterTradeIreland.