Rose Conway Walsh (Sinn Fein) | Oireachtas source

I welcome the Minister of State to the House. I would welcome the Minister of State's views on the impact of the public procurement and competitive tendering process on the social inclusion activation projects.Public procurement projects have a role to play in economic recovery. If the funds are directed to enhance the economic and social development of the area they are in there need to be social clauses to ensure those who are hit hardest by austerity feel the benefits of any increased spend in capital investment. The imposition of social clauses in legislation will be a bulwark against the worst effects of TTIP and the Canadian agreement. In 2015, the Government agreed to support a Sinn Féin Bill to include social clauses but it was placed before a committee and forgotten about. It is also clear there is nothing in the fiscal rules preventing the Government from spending more on capital investment projects. These rules have been used as an excuse to prioritise tax cuts over increased spend on public projects.

I also want to raise the issue of the use of public private partnerships which are often touted as a fast track way of getting projects completed where Exchequer funds cannot do it alone. The fact is the Government can now borrow at a rate of 0.4%, a much lower rate than that available to private entities. If inflation is factored in, this means the Government can effectively borrow money for nothing. Some €9 billion is spent every year on public procurement projects. Social clauses make sure society gets the best value from this. I am also concerned about the Government seeking workers from outside Ireland for many of these upcoming projects at a time when they are cautioning against immigrants returning home in large numbers.