Seán Barrett (Dún Laoghaire, Fine Gael)
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Question 265: To ask the Minister for Finance his plans to direct public procurement authorities to modify the tendering process in respect of smaller public sector construction contracts under the EU procurement directive level of €5.25 million by short-listing ten randomly selected approved local contractors; if he will apply the open tender procedure in the case of all civil engineering projects with a value of less than €15 million; and if he will make a statement on the matter. [30686/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I recognise the importance of public contracts as a source of business for SMEs and I am anxious to promote their participation to the greatest extent possible under EU law. It is inevitable, of course, given present conditions in the construction sector, that there will be greater competition than formerly for places on tender lists and in tender contests. My Department is in discussions with the EU Commission on the question of whether the use of random selection as a means of short listing works contractors would be permissible under EU procurement law.

The open tendering procedure is widely used for civil engineering projects and under EU and national procurement rules, this procedure allows firms meeting the minimum suitability standards to tender for public sector work without any further short listing. However, EU rules stipulate that contracting authorities have the right to use other tendering procedures, such as the restricted procedure, where they deem it appropriate to the circumstances of the particular project.