Caít Keane (Fine Gael) | Oireachtas source

I thank the Fianna Fáil Party for proposing this Bill which is a good idea. I note that the key proposals contained in this Private Members' Bill require that before entering into a public contract or concluding a framework agreement, contracting authorities should consider how the delivery of the contract will meet community benefit requirements. This is very important because we all wish to ensure that communities benefit from contracts and that these contracts will improve the economic, social and environmental well-being, all equally important in the social contract.Emphasis should be placed on environmental well-being in procurement and consideration given to how it might be considered in securing improvements.

I agree with the sentiments outlined in the Bill. I understand Sinn Féin proposed a similar Bill in the Dáil and that the Government did not oppose it. The principle underpinning the procurement process in this Bill is worthwhile. Many of the principles underpinning public procurement processes are based solely on economic considerations in the provision of particular public services at the lowest price. However, the inclusion of social responsibility clauses in tendering requirements has the objective of achieving other socially desirable goals, for example, the employment of local unemployed individuals. This and other provisions would be beneficial.

Everything cannot be measured in monetary terms. We must also consider the benefits to society and people. European Union rules on tendering and public procurement permit the use of social clauses and promote social considerations, which is good. These clauses must satisfy certain requirements; they must be objective, made publicly available and strike a balance between competitive tendering and social considerations. They must not be discriminatory, which is an important element of contracts.

Several EU member states have already made use of social responsibility clauses. The United Kingdom introduced such a clause two years ago and its legislation at the time was heralded as "transformative" because it required public bodies to take into account social and environmental benefits. However, after two years in operation, the evidence suggests not much has changed. The Government must try to avoid the same happening here. It is all well and good to pass legislation and take credit for this, but it must be implemented properly. The evidence in the United Kingdom suggests that of the 480 English councils surveyed in the social value portal, only 15% stated they were applying the clause. Why is that and why is it not being used more widely, especially at a time when it would generate much needed income for community based organisations employing disadvantaged persons? A recently published UK Government review highlighted three main barriers as to why the clause was not being used. The Government here must ensure it does not face the same pitfalls when the legislation is passed. One of the pitfalls in the United Kingdom was a failure to understand how the clause should be applied in government procurement. Another pitfall was related to the agreed standards for measuring social value. Paradoxically, the focus on measurement has got in the way of implementation. Another issue concerns the measurement tools used. Do we have the tools to measure social value and can we use them to bring about innovation in the public service? It is important to consider this issue.

Public procurement in Ireland is undergoing great change, with a shift towards a more socially responsible focus that will result in better outcomes for society, not being entirely based on value for money. The public procurement section of the OPW has undertaken a number of projects involving a social value clause, even before the legislation is enacted. The OPW has demonstrated a spirit to implement such a clause. Modernising services and bringing public procurement processes up to speed with technological developments are also central to this issue. A targeted approach to the use of social value clauses where employers are likely to be hiring additional workers to deliver a contract must be taken. The reform of public procurement processes remains driven by the need to obtain value for money, but it must also include social value clauses in the supply of services. It is, however, essential to ensure value for money is not adversely affected by the inclusion of a social value clause. Senator Darragh O'Brien mentioned we should ensure SMEs were facilitated. Where we have larger companies that can absorb the extra cost of including a social value clause, we must try to ensure it does not discriminate against smaller local companies. We must not cut off our nose to spite our face.

In June the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, established a social clause project group, led by the Office of Public Procurement. Would the Minister of State like to tell us how the group is performing? Two of the projects in which the Government has incorporated a social clause are the Grangegorman development and the devolved school building programme. I understand some 48 long-term unemployed persons have been employed on 15 sites where social clauses are being implemented. Therefore, a significant amount can be done without legislation. Of course, it would be better to have the legislation in place, but we must learn the message on the experience in the United Kingdom, where only 15% of companies are implementing such a clause two years after its introduction. We must ensure any legislation we introduce works.

Would a more effective measurement tool help? I believe it would. We need to consider the modern technology available to aid in measurement. For example, it is not always easy to measure social good or assess and put a figure on the mix of tangible results such as new jobs for disadvantaged persons, increased self-esteem and self-reliance or the self-assurance that comes from having a job. I attended the launch of a mental health programme by Comhairle na nÓg today. We should also consider what procurement can do in providing jobs for people with mental health difficulties. There is significantly more to be measured than just the number of jobs created. Of course, we must always take into consideration the fact that taking a person off the unemployment register is worth €20,000 a year to the State.