Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 95: To ask the Minister for Finance if his attention has been drawn to the fact that the imposition of minimum turnover requirements for prospective tenderers in public sector tendering competitions is restricting the ability of small and medium sized enterprises here to win public contracts, if he intends to address this problem; and if he will make a statement on the matter. [11200/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The Government recognises that the small and medium enterprise (SME) sector is very important to the economy and that public procurement can be a source of business for SMEs. Whilst public bodies may use a prospective contractor's turnover to assess a company's financial capacity, there are no centrally imposed requirements for a minimum turnover. Such requirements would normally be developed on a case by case basis with reference to the specific needs of the contract. In the context of making public procurement more accessible for SMEs, my Department has issued public procurement guidelines to public bodies which are aimed at facilitating greater participation of SMEs in public procurement opportunities. These guidelines are aimed at encouraging recently established firms, or firms with no previous experience of public contracts to tender for public projects. In relation to suitability criteria public bodies are reminded that any levels they set in relation to a potential tenderer's turnover must be both justifiable and proportionate to the needs of the contract.

In addition, I understand that the industrial development agencies look at procurement opportunities to assess whether the public contract notices contain requirements that might discourage SME participation and liaise with my Department as appropriate.