Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

Question 58: To ask the Minister for Finance his views on a number of proposals (details supplied) which would see small local companies apply for and construct State funded projects. [8617/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

National guidelines for contracting authorities in relation to minimum standards for suitability criteria for construction contractors interested in tendering for public works projects are being developed by my Department and, when available, will be published on the Department's construction website www.constructionprocurement.gov.ie. These guidelines will take account of the principles of transparency, proportionality and fairness under the EU treaty.

It should be noted that about 60% of all capital expenditure on public works projects is spent on projects that have a value of €500,000 or less and this percentage is increased to about 80% when the project threshold is raised to €5 million. It is evident therefore that there are already a significant number of projects available in the market place to suit small to medium sized businesses including local businesses. However, I do recognise that there is need to improve transparency and provide greater access to these contracts and to this end my Department has issued guidelines under the Government's Capital Works Management Framework requiring that all public works projects valued at €50,000 or more be advertised on eTenders, the national public procurement website.

As regards the inclusion of a local labour clause in public works contracts contracting authorities must be mindful of their obligations under EU law in awarding public works contracts in excess of €5 million. In this regard the European Court of Justice has indicated that contract conditions relating to the employment of long-term unemployed persons is compatible with EU directives if it has no direct or indirect discriminatory affect on tenders from other member states. Any conditions of this kind must be made known to all potential tenderers.