Written answers
Tuesday, 7 July 2009
Department of Finance
Departmental Contracts
12:00 pm
Darragh O'Brien (Dublin North, Fianna Fail)
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Question 165: To ask the Minister for Finance the steps being taken to allow companies tender for Government business, taking into account the fact that the â¬3,000,000 turnover requirement is precluding many Irish companies from tendering for public contracts; and if he will make a statement on the matter. [27761/09]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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There is no â¬3,000,000 turnover requirement for companies to tender for public contracts. A general requirement of this kind would be inappropriate.
However, it is essential that contractors performing any public contract be of sufficiently sound economic and financial standing. The general position is that criteria used to determine the appropriate level of financial capacity must be proportionate and relevant to the needs of the particular contract. Company turnover can be one measure of financial capacity but contracting authorities have other means of obtaining the necessary evidence to satisfy themselves in this regard, such as extracts from balance sheets, banker's letters and proof of access to professional indemnity, public liability and employer liability insurance and performance bonds.
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