Catherine Murphy (Kildare North, Independent)
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Question 51: To ask the Minister for Finance the barriers that have been identified to date which restrict access to procurement opportunities for small and medium enterprise; if these and other barriers are likely to be addressed in increments or in a more comprehensive way; when we are likely to see practical initiatives; and if he will make a statement on the matter. [14155/11]

Michael Noonan (Limerick City, Fine Gael)
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The Government recognises that the small and medium enterprise (SME) sector is very important to the economy and that public procurement can be an important source of business for SMEs. In this regard, my Department recently issued guidelines addressed to public bodies and aimed at facilitating small and medium-sized enterprises in competing for public procurement opportunities. The guidance sets out positive measures that public contracting authorities are required to take to promote SME involvement in a manner that is consistent with the principles and rules of the existing public procurement regulatory regime. The guidance also highlights practices that are to be avoided because they can unjustifiably hinder small businesses in competing for public contracts. Some of the key features of the guidance include: - Encouraging SME participation in public procurement competition by requiring that contracts for supplies and general services with an estimated value of €25,000 or more are now to be advertised on the www.etenders.gov.ie website. - Opening up the tender process to SMEs by requiring contracting authorities to use more open, rather than restrictive, tendering procedures; - Accepting "self-declaration" of a tenderer's capacity to undertake a project and only seeking documentary evidence when a tenderer is short-listed or being considered for the award of a contract; and, - Removing unnecessarily high suitability criteria by instructing contracting authorities to ensure that the capacity levels they set for tendering competitions are relevant and proportionate to the needs of the contract. Measures such as these will increase the opportunities for SMEs to compete for public contracts and will reduce the up-front administration burden for them.

In addition to the above, the guidance advises that the sub-dividing of procurement requirements into "lots" may be considered by contracting authorities where it would be appropriate and practical and can be done without compromising efficiency and value for money. Such approaches can facilitate SMEs.

The guidance also provides that in establishing framework agreements, contracting authorities are to consider how proposed arrangements will impact on SMEs. They are required to ensure that the terms of the framework facilitate the inclusion of smaller enterprises if these can meet requirements or compete for particular lots. Also, smaller companies can combine with others to make a joint bid for a contract that they might not be in a position to perform on their own.

The Government will continue to review the situation in regard to SME participation in public procurement and, where consistent with achieving value for money, probity and transparency, will seek to address any further issues that might be identified.