Richard Bruton (Dublin North Central, Fine Gael)
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Question 204: To ask the Minister for Enterprise, Trade and Innovation if he has agreed protocols with Enterprise Ireland to ensure that small and medium-sized businesses receive an opportunity to participate in public procurement competitions; the steps he has taken to ensure that practices which hinder small and medium-sized businesses from participating in public procurement competitions are minimized; and if he will make a statement on the matter. [38241/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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A number of initiatives have been taken over the last two years to improve participation by SMEs in tendering for public contracts. In 2008, the Tánaiste established the Procurement Innovation Group which was charged with identifying ways through which public procurement could be used to stimulate demand for innovative goods and services, while opening opportunities for all innovative companies, including SMEs, who wish to participate in public tendering. The Group's report, "Using Public Procurement to Stimulate Innovation and SME Access to Public Contracts ", set out a series of recommendations aimed at improving the procurement function in public contracting bodies and increasing opportunities for SMEs to tender for contracts.

In parallel with the Procurement Innovation Group's report, my Department published a 10-Step Guide to Smart Procurement and SME Access to Public Contracts in July 2009, which provided practical guidance to public bodies on measures which could boost the involvement of SMEs in public procurement.

In August this year, the Minister for Finance issued guidelines to public contracting authorities aimed at operating their tendering processes in a manner that facilitates increased participation by SMEs, while ensuring that all purchasing is carried out in a manner that is legal, transparent, and secures optimal value for money for the taxpayer. The guidelines also highlight practices that are to be avoided where they can unjustifiably hinder small businesses in competing for public contracts.

In July this year, I wrote to over 50 contracting authorities inviting them to sign a Memorandum of Understanding with Enterprise Ireland, aimed at facilitating SME participation in public sector opportunities. The Memorandum of Understanding will help to ensure that the Government's objective of driving innovation and supporting SMEs has the required commitment from public funded organisations and semi state bodies. Included in the initial target listing of contracting authorities were organisations which have a large budget spend, those that had a significant importance for an SME reference site, and all city and county councils. I have requested to be kept apprised on progress and of any other action which might be required.