Richard Bruton (Dublin North Central, Fine Gael)
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The Programme for Government includes a commitment to reform public procurement to support innovative Irish firms and to allow greater access to procurement by Irish small and medium sized businesses. While responsibility for public procurement policy is a matter for the Minister for Finance, my Department has a particular interest in this area because of the potential for SMEs to win a share of the public procurement market which is valued in the region of €14 billion per annum in Ireland.

In 2008, my Department established a Procurement Innovation Group, comprising representatives of industry, academia, Government Departments and State agencies to identify ways through which public procurement could be used to stimulate demand for innovative goods and services and ensure a level playing field for all innovative companies wishing to participate in public tendering. The Group reported in July 2009 and also published The 10-Step Guide to Smart Procurement and SME Access to Public Contracts. The Guide provides practical advice to public bodies on measures which could boost the involvement of SMEs in public procurement.

In August 2010, new guidelines were issued by the Department of Finance to public contracting authorities, aimed at ensuring that their tendering processes operate 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 can unintentionally hinder small businesses in competing for public contracts. The Department of Finance's 2010 guidelines reflect many of the recommendations made in the report of the Procurement Innovation Group.

My Department has recently engaged with the National Procurement Service (NPS) in relation to the availability of data on public procurement in Ireland, in particular in relation to quantifying the numbers of contracts which are being competed for, and won by, SMEs. The NPS is currently in the process of undertaking an overhaul of the eTenders portal system and has agreed to capture additional data as part of its upgrade to the system. As part of its engagement with my Department, the NPS has also agreed to carry out surveys in the coming months to ascertain the success rate of SMEs which apply for public contracts, and to identify some of the issues which may be a barrier to winning such contracts.

In parallel with the activity that has been taking place at Departmental level, Enterprise Ireland has established a Public Procurement Team to focus on procurement opportunities in Ireland and abroad for indigenous companies, and to accelerate knowledge within contracting authorities in the public service of the potential of these Irish companies. I have asked my officials to review the current status of the recommendations made by the Procurement Innovation Group and to report to me on any outstanding issues that need to be addressed to further facilitate access to public procurement contracts by Irish companies within the parameters of EU procurement rules. I will consult with the Minister for Finance - and other colleagues as necessary - on foot of this review.