Seanad debates

Wednesday, 18 November 2020

Nithe i dtosach suíonna - Commencement Matters

Public Procurement Contracts

10:30 am

Photo of Robbie GallagherRobbie Gallagher (Fianna Fail) | Oireachtas source

Ar dtús by mhaith liom fáilte mhór a chur roimh an Aire Stáit chuig on Teach inniu. At the outset I welcome the Minister of State to the House and wish him every success in his role and portfolio.

I have been contacted by many people in County Monaghan and elsewhere who have voiced their annoyance, concern and anger at the number of substantial State contracts being awarded to contractors outside the State at the expense of local contractors. For example, from 2017 to 2020, Monaghan County Council awarded 22 State contracts of which ten were awarded to contractors outside the State. Upon further examination of the period 2019 to 2020, 13 contracts were awarded and eight of those were awarded to contractors outside the State. The total value of those eight contracts was €23,000,700. That is a substantial amount of money and a major potential loss to the local economy.

It is frustrating for a local contractor who tenders for such contracts to see businesses lose out and to see the business going outside the State. It is also frustrating when those same local contractors employ local people. Those same local contractors buy their materials from local suppliers and pay rates and taxes in this State. We all understand the State tendering process. However, local people in County Monaghan are asking questions about a tendering process that more often than not results in contracts being awarded to firms outside the State as opposed to contractors inside the State.

Many people are asking questions about the State tendering process that consistently results in local firms losing out. They seek some form of investigation into the awarding of substantial State contracts. All the contracts I mentioned are in excess of €1 million. We seek clarity that the process the State is currently undertaking is fair to everyone, that it is a level playing field and that there are no hidden areas that some people can take advantage of, especially from outside the State as opposed to contractors inside the State. I would like the State to carry out inspections before a contract is awarded, during the contract and at the end of the contract to ensure all areas of employment law and other areas are fully compliant and above board. Local contractors would like, where possible, to get work within their own county. It is extremely frustrating for them to see contracts being awarded to firms outside the State whose employees have to travel to the county in the first instance before they even start work and who also have that added expense.

I look forward to hearing the Minister of State's comments. In addition, what effect, if any, will Brexit have with respect to State contracts, particularly for people from outside the State?

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