Mark Wall (Labour) | Oireachtas source

I too welcome the Minister of State, Deputy Ossian Smyth. I also thank Senators Higgins, Ruane, Black and Flynn for bringing this important and timely Bill to the Seanad. The Labour Party is very pleased to support the Bill. There is an onus on us all in this House to ensure the Government operates best practice, given that the State is the largest procurer of services and goods. The onus must always be on best practice in labour and environmental standards while achieving the best quality standards. The need to examine public procurement and public authorities and utilities under the contract preparation and award criteria is a very timely topic. We have only to look at recent awards, including the national children's hospital, to acknowledge how important such examinations are. This should not be about the cheapest way of getting things done because, as has been said. We should always strive to achieve a quality product or service.We are all very aware of the adages that if it seems too good to be true then it is too good to be true and of being penny wise and pound foolish. That is how we should approach public procurement. I know this Bill tries to address this and I welcome that fact.

Too often, lists are presented where the only option is the contractor with the lowest price. Unfortunately, to our cost and in too many recent cases, this method of selecting and awarding contracts has left this State with a bigger cost, and ultimately, the taxpayer ends up paying these additional costs. We must address quality over price.

I am aware that many of those waiting on tenders to return are wishing that a particular contractor or contractors do not come in with the lowest price. This is simply because they know that if they are forced to accept that contractor and its lowest price, this will lead them to finding faults and spending additional time on follow-ups and time-consuming inspections, given the history and experience many have with this type of procurement. That said, thankfully we have many reputable contractors. There are, however, differences in the quality of their work and their ability to deliver quality projects and services within specified timeframes. There is certainly much merit in looking at a system which does not use the principle whereby the lowest tender wins, regardless of any contractor or its previous record.

It is my understanding that the State spends €12 billion per annum on public procurement. There can never be any question or doubt that a robust procurement system is vitally important to the running of this country on a day-to-day and future basis for the benefit of all communities. We are all unfortunately aware, however, that the State has suffered because of the consequences of the current low-price procurement process. From screening programmes to school building programmes, we have seen the results of what many describe as a system with many flaws. The children's hospital process, which I understand was weighted on the lowest price versus quality, is the latest example of the need for reform in this area.

It is true that many public sector bodies, and many of those with whom I have spoken who are involved in procurement over the last number of years, recognise the need for stronger criteria for change and for greater emphasis on quality in determining the procedures involved in how we award public contracts. Many of those who deal with the tendering process now seek more emphasis on quality with much more emphasis on the economic outcomes of the project for which they have drawn up a tender, rather than, as they see it, a race to the bottom based on who can provide the lowest price to win the same contract.

We believe this Bill, as introduced by Senator Higgins and her colleagues, will point us all in that direction. To that end, we welcome that inclusion and proposed change. We believe this will make a change in how those tendering for these contracts view the process and concentrate their minds on quality and sustainability, rather than how using certain materials or reducing some processes may win a contract which is weighted more on price.

At the outset, I stated that I felt this Bill was timely. I will use part of my contribution to back the calls by my union, SIPTU, in calling on the Minister for Social Protection to reverse her recently announced market-driven approach to local development companies. The Minister, Deputy Humphreys, in the opinion of many is heading down a road of privatising community employment services, including the local development companies involved in job creation and support for the unemployed. SIPTU commented that this proposed process has created a real and genuine concern among its members that the wholesale privatisation of the community sector is the ultimate endgame for this Government. Local development companies are constituted on a not-for-profit basis and the proposal to change these essential services to a cost bid rather than a cost met model will not serve jobseekers, staff or communities well. SIPTU goes on to say that this move may ultimately facilitate these important services being sold off to private companies with little or no positive outcomes for the communities its members serve.

The timely aspect of this proposed announcement is the emphasis again in the Government on cost, rather than the quality and environmental outcomes of the changes in public procurement, as proposed in Senator Higgins's Bill. I am aware of the terrific work being carried out all over the country by local development companies, particularly in my home county of Kildare. We must not make the mistakes of the past and put price before community benefit.

We note the Bill does not propose introducing mandatory green public procurement criteria. We agree with Senator Higgins, however, that it should lead to more consideration of the importance of reviewing green criteria and how we view the future of our tendering process from a green environmental perspective. We must ensure the future procurement process includes sustainable products and services.

I look forward to this Bill progressing. Once again, I thank Senator Higgins and all her colleagues for introducing it. We must learn from the mistakes of the past to build and secure and sustainable infrastructure and services that will last into the future and give us all value for money.