Written answers

Thursday, 12 February 2009

5:00 pm

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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Question 87: To ask the Minister for Finance if his attention has been drawn to the fact that the report of a company (details supplied) declares that the submission of below cost tenders for construction contracts in the north west is widespread; his views on whether this is unsustainable; his further views on whether the weakness of sterling and the higher cost base here puts contractors from Border areas at a competitive disadvantage against Northern contractors in the tendering process; and if he will examine the possibility of correcting this competitive imbalance, with due regard for competition law. [5452/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I have had the reference drawn to my attention.

EU Procurement rules mean that public contracts are open to firms in all other Member States on an equal basis. In that context, exchange rate movements outside the eurozone can place Irish firms at a disadvantage. However, the current recessionary situation which has entailed a fall in tender prices should also lead to a reduction in contractors' costs, thus allowing lower tender prices to be sustainable over the medium term.

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