Alice-Mary Higgins (Independent) | Oireachtas source

I welcome the Minister of State to the House. This issue is of crucial importance, as it was in my previous role with the National Women's Council of Ireland where it was a key area of focus. It is also an important issue for ICTU, the trade unions and the European women's lobby. At a European level, there is a vibrant debate on best practice in this area and I would like to see Ireland at the centre of that.

Ireland spends €12 billion on public procurement each year, which comprises €8.5 billion on services and €3.5 billion on construction. Its importance seeps into every area of life. I urge that our procurement policy should not be viewed as a short-term convenient purchasing mechanism but rather as a strategic and key long-term muscle within our State. At its best, it is a lever for positive change - something that can promote an integrated view of society, the economy and the environment, which can drive standards and promote inclusion, as we saw in regard to Grangegorman.

At its worst with bad procurement, we saw things such as the direct provision centres where contracts went to companies with offshore accounts and which lacked accountability. We have seen the 999 workers being denied basic dignity. In the end, these situations become a political problem because they are fundamentally political issues. There must be political accountability for this matter and responsibility must be taken in this regard.

While I know we are not addressing the matter in the House today, the question of educational procurement services is worrying. I understand it is responsible for library procurement. Vigorous research from all sides of the House seems to have difficulty with the procurement issue. Ultimately, whether public money is being spent that is a public charge - be it from the Estimates or local authorities - it must be politically accountable. I urge the Minister of State to see if the Office for Government Procurement will in due course take full responsibility for procurement policy and procedures.

We need to move beyond pointing to EU rules. I have seen that happen with JobPath, for example, where we were told the reasons we have this system. There is huge scope for clarity and we need to be clear about the powers and choices we have. This is important in the context of transposing EU Directive 24/2014. It was transposed in May but, unfortunately, without much public debate as no government had been formed at the time. However, I had an opportunity to contribute to consultations on that back in 2014.

It was recognised that we needed to examine price-quality ratios rather than lowest cost. I was concerned to see the Minister of State refer to value for money in his speech. We have moved past that and the debate is now about the most economically advantageous tender, with long-term thinking, and the price-quality ratios, with a recognition that quality is not an after-effect but a key consideration.

There is scope to take account of economy-wide strategic policy roles and to examine the role of social clauses. I am also concerned by the Minister of State's reference to privileging of value for money because that is not the current situation in terms of price-quality ratios. Social clauses are not an add-on or a wish list. This is about ensuring strategic gain for the longest term.

I am also concerned by what the Minister of State mentioned in terms of additional costs not being placed on domestic suppliers relative to other potential suppliers. We do not want a race to the bottom. If any company purports to deliver services in Ireland, it should meet the highest possible standards regardless of the origin of that company. We certainly do not want to see any dilution.

Moreover, I would encourage the Minister of State to come back to Senators on how we may have passed a simple issue of compliance with environmental and employment standards but also how we can look at promising and exceeding positive measures. For example, should a company whose staff are on family income supplement drawn from social protection, be advantaged in a tendering process over a company which is seeking to promote the living wage?

I would like to engage further with the Minister of State on two or three other points but will move past them as I know that my time is running out. Supports for small and medium enterprises have been addressed. I believe that by promoting standards and supporting companies to meet those standards, we will give them a better opportunity. The moves concerning sheltered workshops are welcome. There is a discretion to divide public contracts into lots. In fact, there is an obligation that when that decision is not made, it should be explained. As regards library services, we have not been presented with a rationale from anybody as to why the decision was made not to divide it into lots.

The ring-fencing of contracts for social enterprises and the extension of the grounds for including suppliers are important issues and there has been positive movement on them. I ask the Minister of State to return to the House with a risk analysis of all our procurement services. What are the implications for areas where we have fallen into outsourcing? What are the mechanisms for returning a public service to direct public delivery, which is currently delivered by contract? I pose this question especially in the light of TTIP and the potential provisional application of the EU-Canada Comprehensive Economic and Trade Agreement, CETA. How can we ensure that we maintain not just our fiscal space but our policy space to ensure that this State can choose the best delivery method? How can we ensure that regulations which we may wish to introduce are not chilled, become a blank cheque or a hostage to fortune? We should ensure the greatest responsiveness within all of our services to the regulatory messages that come from our State.

I wish to thank the Minister of State for attending the House today. I ask him to return in the autumn to discuss a risk analysis of our current procurement regime and how it can be strengthened to give the maximum policy choice and flexibility.