Frances Black (Independent) | Oireachtas source

I move amendment No. 1 to amendment No. 1:

To delete "12 months" and substitute "6 months".

I welcome the Minister of State to the House. I am in wholehearted support of this quality in public procurement Bill and I begin by commending my colleague, Senator Alice-Mary Higgins, on her hard work and ongoing commitment to tackling the numerous flaws in the public procurement and expenditure areas. This Bill is clear, concise and strong, and the aim is to strengthen the national legislative framework for sustainable public procurement with a well-mapped, four-part approach. We have an historic opportunity to overhaul our outdated public procurement regime and pass legislation that delivers for our communities and our businesses.

In 2019, Ireland spent €12 billion on goods, services and construction and the national development plan states €116 billion of public funding will go towards major capital work projects. This huge amount of Government spending must be leveraged to play its part in Ireland's economic recovery, opening public contracts to more small businesses and social enterprises to innovate in public services delivery. Introducing legislation like this Bill would support that aim. The people have a right to know our money is being spent wisely and efficiently on the public services from which we all benefit and enjoy. To do this, legislation such as this quality in public procurement Bill is essential to create a carefully thought through model in standards and performances.

When State agencies consider tenders for projects, they do not have to select the lowest price. In setting the procurement strategy, drafting the contract terms and evaluating tenders they can and should take a broad view of value for money that includes social value. This Bill will help us to improve public procurement, which will not only save the taxpayer money but drive social, environmental and economic benefits in our country. Awarding the right contract to the right supplier is the cornerstone of public procurement and the litmus test for an effective procurement regime. To have the best public services we need the best suppliers and the regulatory regime must support contracting authorities in selecting those suppliers.

Achieving value for money in public procurement must continue to be about securing the best mix of quality and effectiveness for the least outlay over the period of use of the goods or services bought. That includes the whole-life costs, quality aspects and the economic, social and environmental aspects of a contract. Departments do not have to select the cheapest bid and they can take into account the wider economic, social or environmental benefits.

This legislation would introduce a price quality ratio as the default approach to awarding contracts. That would mean that if authorities chose to award a significant contract based on the price only they would also be required to publish an explanation from a senior official on the reason that contract was awarded, which would ensure transparency and accountability. This Bill would ensure that any contacts worth more than €5.3 million, or otherwise known as contracts over the EU public works threshold, would set a target of 50% quality criteria. That has massive potential in terms of shifting the culture around the public procurement process and sends a signal to businesses, including small and medium enterprises, SMEs, that we care about their track record and the quality of what they do. It also sends a clear and important message that if they put in the work to raise their standards and lead best practice in an area they would be rewarded when it comes to securing contracts.

I am happy to support this legislation as there is no doubt that the benefits of having the awarding of contracts based on best value and also best quality will benefit everyone. As the awarding of contracts is the spending of public funds it is imperative that these contracts are both value for money and of the highest quality. We must ensure that the tendering process is open and transparent. I am very disappointed with the Government's amendment to defer the Bill for 12 months. All the work can get done within the six-month period. I encourage the Minister of State to think about that because the Bill is a phenomenal piece of work and my colleague has put so much work into it. I encourage Members here today support the proposal for a six-month rather than a 12-month deferral.