Niall Collins (Limerick West, Fianna Fail)
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Question 175: To ask the Minister for Finance if an allowance in the rating criteria will be built in for companies who are based here and tendering for such projects based on the imbalance stated (details supplied); and if he will make a statement on the matter. [23232/10]

Niall Collins (Limerick West, Fianna Fail)
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Question 176: To ask the Minister for Finance if he intends to specify the supply of Irish-produced or Irish-grown products in future Government tenders (details supplied); and if he will make a statement on the matter. [23234/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 175 and 176 together.

The EU procurement directives provide that public contracts for supplies and services above certain thresholds must be advertised EU-wide and awarded to the most competitive tender in an open and objective process. The thresholds are currently €125,000 for the Central Government sector and €193,000 for most other authorities. The aims of the regulations are to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money. It would be a breach of the rules for a public body to favour or discriminate against particular candidates on grounds of nationality and there are legal sanctions which may be used against any public body infringing these rules.

The Government recognises the important business opportunities that public service contracts represent for business enterprises and encourages participation to the greatest extent possible. In this regard the Government is fully aware of the difficulties experienced by the small and medium business sector in the current market. The Cabinet Sub-Committee on Transforming the Public Service recently considered the issues currently facing small businesses in the public procurement market. In a submission to the Sub-Committee, my Department has given a commitment to reiterate Government policy in this area, to examine current issues and to address them in general guidance to contracting authorities. It is envisaged that this guidance will be issued in the near future.