Joe McHugh (Donegal North East, Fine Gael)
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Question 216: To ask the Minister for Finance if, in the interests of value for money for the taxpayer, he will alter the prequalification criteria for tendering for public projects in view of the fact that existing criteria favour larger companies; and if he will make a statement on the matter. [4688/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The establishment of a list of competent firms interested in tendering for a particular project is an essential part of a prequalification procedure. For transparency purposes, it is a requirement that the number of firms being short listed should be stated in the contract notice published on eTenders or, in the case of projects above the EU threshold, in the Official Journal of the European Union. The prequalification criteria in EU Directive 2004/18/EC and SI No 329 of 2006 and the underlying principles in the EU Treaty are there to give confidence to businesses who express an interest in a particular procurement opportunity that they will be treated equally and fairly.

There are two parts to prequalification. The first deals with minimum standards which a contracting authority must set out in a suitability questionnaire applicable in particular situations. Minimum standards can vary from project to project depending on size, nature and complexity. The overriding objective for all contracting authorities, when establishing minimum standards, is to adhere to the underlying principles in the EU Treaty of non-discrimination, proportionality, fairness and transparency. I should say that the establishment of minimum standards is a matter for the relevant contracting authorities to determine as they are nearest to the activity and therefore best placed to decide what is appropriate in particular situations. The minimum standards for suitability criteria in use by various Government Departments, Offices and Agencies, and which are in the public domain at present are published on my Department's construction website www.constructionprocurement.gov.ie

The second part of prequalification is qualitative selection. This is used to assess firms that pass the minimum standards so that those with the best marks go forward to a tender list up to the maximum number stated in the contract notice.

I am conscious of the pressures facing SMEs and I have asked my Department to develop national guidelines for minimum standards for suitability criteria for construction-consultants and works contractors. However, I should say that, even with these guidelines in place, local input by contracting authorities will continue to be required in particular situations. When the work of developing national guidelines is complete, they will be published on the Department's construction website.