Richard Bruton (Dublin North Central, Fine Gael)
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Question 36: To ask the Minister for Finance if his attention has been drawn to the concerns raised that the public procurement contracts and some of the requirements set at tendering stage are militating against innovative small companies, particularly in the software industry here from gaining opportunities to participate in Government contracts; his views on changes that would make it easier for small new companies to participate and to encourage the partnering of larger companies with SMEs; and if he will make a statement on the matter. [17658/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I recognise the important role of small or medium sized enterprises in the local and national economy and my aim is to encourage maximum participation of SMEs in the public procurement market. While the requirements and specifications for individual contracts must be determined by the contracting authority, general guidelines issued by my Department recommend that contracting authorities ensure that recently established firms, or firms with no previous experience of public contracts, are not excluded from the tendering process.

The public procurement market must operate on an open and non-discriminatory basis and it can be an important source of business for SMEs. In the past, access to public contracts was perceived as a problem by many in this sector. Significant measures have been introduced to combat this. For example, a national public procurement website (www.etenders.gov.ie) was developed by my Department in recent years where all significant public sector contracts are advertised. This central facility increases transparency and greatly increases access to public sector contracts for all suppliers. The SME sector is also actively targeted through a marketing campaign and suppliers receive free email alerts to tender notices of interest to them. Figures show a steady increase in the number of registered suppliers competing for business.

A practical example of encouraging appropriate inclusion of SMEs can be found in the Information and Communications Technology (ICT) sector. It is intended to hold a series of competitions to set up framework contracts for ICT hardware, software and services. These tenders will reference the desirability of SME inclusion. The first such contract has recently been put in place for personal computers. This framework includes an SME as a lead supplier and a number of SMEs as nominated resellers. I would like to build on this and to see more SMEs competing for public contracts in the future. I will, therefore, be keeping the matter under review, particularly in the implementation of the national public procurement strategy.

As regards the broader question of encouraging and facilitating SMEs in Ireland, this is a matter primarily for my colleague, the Minister for Enterprise, Trade & Employment, who I know is also supportive of SMEs.