Alan Shatter (Dublin South, Fine Gael)
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Question 42: To ask the Minister for Finance the extent to which public service contracts are allocated to domestic small and medium enterprises; the way this proportion compares to other EU countries; if he plans policy initiatives to make contracts more accessible to Irish SMEs; and if he will make a statement on the matter. [24771/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Studies indicate that in smaller Member States, small and medium enterprises tend to win a high percentage of public contracts. EU studies indicate that about 65% of Ireland's public contracts, by value, is won by SMEs. This compares to between 30% and 35% for bigger Member States such as the UK, France, Germany and Spain. The figures relate to larger contracts advertised in the Official Journal of the EU (OJEU). Such contracts comprise between 25% and 30% of the total public procurement market.

Smaller contracts, generally between €50,000 and the OJEU publication threshold, are advertised on the national public procurement website (www.etenders.gov.ie ) or, if of lower value, awarded following competition between an adequate number of suitable companies directly invited to tender. Indicative figures show a very high proportion of this market segment is won by domestic enterprises.

Government recognises the important business opportunities that public service contracts represent for business enterprises in the local and national economy and encourages participation to the greatest extent possible. Significant measures have been introduced which make it easier for small and medium enterprises (SMEs) to bid for public contracts. Among these are · the wide advertising of public procurement opportunities via the national public procurement website (etenders) which is now the established reference point for all procurement opportunities · the issue of email "alerts" directly to registered suppliers when contracts that might be of interest to them are advertised · the simplification of the tendering process through the etenders website having a facility to pre-qualify tenderers and to submit tenders online · the provision of more training for the "professionalisation" of public purchasers. In recent years, sixty officials from forty organisations have undergone training in spend profiling and corporate procurement planning. A two year Masters qualification in Strategic Procurement is being offered by Dublin City University since September 2006 and an IPA Course is also available. Such initiatives are providing key public purchasers with the skills to appropriately promote whole of Government objectives and policies through the State's purchasing power.

More recently, the National Procurement Service (NPS) was established within the Office of Public Works. The Service is working closely with all areas of the public sector to promote efficiencies and economies in public procurement expenditure. It is acutely aware of the issues for SMEs and has commenced the process of: · encouraging organisations to advertise low value contracts on etenders in order to promote SME participation in association with the Chief State Solicitor's Office (CSSO), standardising contract and tender documents · educating SMEs through up-skilling by means of seminars/workshops/website · in association with the Department of Finance, reviewing appropriate levels of financial capacity required for public contracts · working with the CSSO and the State Claims Agency in examining the levels of public liability insurance required · working with Enterprise Ireland to encourage SMEs to tender for as many public contracts as possible · encouraging SMEs in the use of electronic tendering on etenders which requires no more than a personal computer and Internet access and does not involve the expense of specialist software · encouraging early advertising upcoming procurement opportunities.

Finally, my Department, in consultation with the NPS, the Department of Enterprise, Trade and Innovation and other stakeholders in the public procurement market, has developed guidance for contracting authorities on measures to facilitate SME participation in the public procurement market. This will be published shortly.