Leo Varadkar (Dublin West, Fine Gael)
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Question 331: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she is confident that all agencies and bodies under her Department's responsibility comply fully with the Department of Finance procurement guidelines for goods and services; if she has sought assurances from the agencies and bodies that this is the case since 2000 to date in 2008; if she has expressed concern to an agency or body that it might be acting inappropriately since 2000 to date in 2008; if so, the agency or body; and if she will make a statement on the matter. [29167/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Agencies and Offices, which come under the aegis of my Department, are aware of the necessity to comply with the Department of Finance Public Procurement Guidelines in relation to the acquisition of goods and services by them. The Department of Finance Code of Practice for the Governance of State Bodies, which applies to non commercial and commercial State Bodies, states: competitive tendering should be normal procedure in the procurement process of State bodies. It is the specific responsibility of the Board to ensure that this procedure is implemented and that it is fully conversant with the current value thresholds for the application of procurement rules. The detailed procurement procedures, as set out in the Public Procurement Booklet, in respect of competitive tendering should be applied. It is stressed that, in addition to the national guidelines, the relevant EU Directives, which have the force of law in this and all Member States, should be complied with. It is the responsibility of the Board and management to ensure such compliance. The Chairperson should, in the annual report to the relevant Minister "affirm compliance with the procurement procedures outlined above."

I have not expressed concern to any Agency or Office, other than FÁS, that it might be acting inappropriately in relation to procurement guidelines. FÁS, along with a number of other State Bodies, was criticised in a recent report by the Comptroller and Auditor General (C&AG) dealing with audits of Non-Commercial Semi-State Bodies. FÁS has since taken a number of steps in response to its internal audit report, on which the Comptroller and Auditor General's report is based, by strengthening its procedures and internal financial controls.

Nonetheless, I have discussed this matter with the Director General of FÁS and have expressed my concern at the breach of procurement guidelines and the need to secure value for money in public expenditure. In addition, I have requested my Department to follow this matter up directly with the Director General of FÁS. The Secretary General of my Department has since written to the Director General seeking formal assurances that the practices referred to in the above reports have ceased and that adequate systems and controls are in place to prevent any recurrence. He has also requested regular reports from the Director General on the implementation of these systems and controls.