Catherine Murphy (Kildare North, Independent)
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Question 587: To ask the Minister for the Environment, Community and Local Government if he has given consideration to a combined e-procurement initiative as a means of cutting costs to local authorities; and if he will make a statement on the matter. [23903/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Local authorities have developed an on-line tendering/quotation solution LAQuotes.ie to streamline procurement processes for a range of supplies and services. This solution was developed by Kerry County Council in 2003 and is centrally managed by the Council on behalf of participating local authorities.

The development of LAQuotes.ie has introduced greater efficiencies into the procurement process in the local government sector resulting in on-going savings and benefits both to the sector and to suppliers. It has been estimated that the system has yielded savings to local authorities in the order of €250 million in the period 2006-2009. In addition, the on-line tender solution LABitumen.ie has been developed to streamline the tendering process for bitumen emulsions for all local authorities.

My Department has been working with local authorities to advance the efficiency agenda. The first progress report on the Local Government Sectoral Action Plan to the Implementation Body on the Public Services Agreement has identified savings of €223 million for the reporting period to the end of March 2011, of which some €30 million relates to procurement.

Earlier this year, I established the independent Local Government Efficiency Implementation Group. This Group has been tasked with driving forward relevant recommendations of the Local Government Efficiency Review Report (July 2010) in areas including shared services, procurement, value for money and audit. The Group has been asked to focus on key recommendations that will remove costs and yield earliest financial gains for the benefit of the sector. The Group is to report to me at regular intervals with its first report to be submitted shortly.

The Implementation Group recently considered a submission on procurement from the County and City Managers' Association. Local authorities are committed to exploiting the potential that exists for additional savings in this area, primarily through increased aggregation in procurement at regional level, maximising the use of National Procurement Service Framework Agreements, where appropriate, extending low value purchase cards across the sector and further developing the LAQuotes system.