Seán Kyne (Fine Gael) | Oireachtas source

I move amendment No. 1:

To delete all words after “That” and substitute the following: “the Bill be read a second time this day 12 months to allow for comprehensive consideration of the implications of the Bill.”

I welcome the Minister of State. I thank Senator Higgins and her colleagues for their work on this very important Bill.One only has to look back at the record of any of these Houses over a period of months to see the amount of times the issue of procurement is raised, whether in relation to the engagement of consultants, procurement frameworks, the procurement, management of oversight of projects, or procurement processes to appoint a design team. We all use that language very often with regard to the range of projects in which we are interested and which we want to pursue. Those who watch as much TV as I do will see the issues that arise in other countries with regard to corruption, the way contracts are awarded and all that goes with it. I would like to think that does not happen in this country. Perhaps I am being a little naive in some regards but I believe we have very high standards in our processes with regard to procurement. The Office of Government Procurement does a very important job on behalf of the State in achieving value for money and in ensuring fairness. If there is one thing most people do not like to see, it is an unfair process in which people reap the benefits of favouritism.

Transparency is very important in any system. The transparency in the Irish system has led to the business sector's acceptance of the whole process. The sector regards it as well-run. Efficient businesses are rewarded and corruption is reduced.

We do, however, need to make the process easier for small businesses who wish to tender regionally. This issue has been raised numerous times. I refer to regional procurement rather than national procurement. We have heard stories of local suppliers who were excluded because of their scale and because they do not have the requisite level of turnover to qualify for a job. They may have the requisite level for regional projects but not for national projects. That should be taken into account because we want to see local suppliers and SMEs being given a fair crack of the whip with regard to procurement.

The Minister of State has been engaging with Senator Higgins and the Senator has engaged with the Office of Government Procurement with regard to the Bill. It is a thought-provoking Bill and there is a lot in it with regard to ensuring contracts are not assessed on price only. There is merit in that but that is not to say there are not issues with the Bill. I note this is the reason a timed amendment has been proposed with regard to the reading of the Bill. I know from the 2018 public service spend and tendering analysis report published by the Department that 11 of the 16 procurement spend categories remain predominantly SME, which is heartening. It is up to a 53% share of the spend, although that varies with the category. For example, in plant hire or fleet plant hire, the proportion that won by SMEs is above 80% or even 90%. Minor building works and civils, marketing, print and stationery are all a high gain in terms of the share of the spend at above 70%, which is important. Some of the lower ones are those one might expect, such as those involved in defence utility contracts, which have a much lower share for SMEs. There is scope for SMEs to secure a tender.

I welcome the line in the programme for Government regarding the SME working groups to promote the engagement of SMEs in public procurement. That group includes representatives of the Irish Business Employers Confederation, the Irish SME Association, the Construction Industry Federation and the Small Firms Association as well as chambers and key public officials within the Government. That is very important to ensure that SMEs know about the processes and have a fair crack.

I spoke earlier in the week about the national development plan, NDP. All of this is interlinked in the delivery of the NDP. We all want whatever projects are listed in the NDP and future projects to be built on time and within cost in order that people will have confidence in them. While there is the OGP, we could do with a unit or agency to oversee and deliver large projects in particular. I do not mean it would decide on the desirability of projects but rather that it would be involved in the drawing up of tenders and managing contracts and the development. The unit would draw on expertise relating to project delivery from the OGP, identify areas requiring attention and troubleshoot at the early stages of projects. That could be of benefit in this regard.

The Bill is important. There are many thought-provoking and worthy elements to it in regard to the social contract and to ensuring that we are cognisant of minorities and people with disabilities, and in order that groups that tender for projects take notice of that. I hope that in the time before amendments are debated, we can work with Senator Higgins to ensure the delivery of what she promoted.