Michael McGrath (Cork South Central, Fianna Fail)
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Question 194: To ask the Minister for Finance the position regarding a procurement matter (details supplied). [41423/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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There is no general requirement that companies applying for public contracts provide three year financial statements of accounts. Under public procurement guidelines, contracting authorities are required to ensure that recently established firms, or firms with no previous experience of public contracts, are not excluded from public tendering. It is, of course, essential that contractors performing public contracts be of sufficiently sound economic and financial standing. The general position is that criteria used to determine the appropriate level of financial capacity must be proportionate and relevant to the needs of the particular contract. Various forms of evidence of financial capacity may be sought, such as bankers' statements, extracts from balance sheets, proof of access to professional indemnity, public liability and employer liability insurance, performance bonds or demonstrable access to resources of third parties. My Department recently re-iterated these conditions in guidelines to public bodies which are aimed at facilitating greater participation by small and medium-sized enterprises (SMEs) in public procurement opportunities. As part of these provisions, the documentary evidence need only be produced when a tenderer has been short-listed or is coming under consideration for the award of a contract.