Maureen O'Sullivan (Dublin Central, Independent)
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Question 181: To ask the Minister for Public Expenditure and Reform if his attention has been drawn to the amount of printing work that is leaving the State, leading to the closure of printing firms here; if his further attention has been drawn to the VAT position and loss of revenue to the State due to the fulfilling of printing requirements outside the State; and if he will make a statement on the matter. [29767/11]

Brian Hayes (Dublin South West, Fine Gael)
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The National Procurement Service (NPS) is a Business Unit of the Office of Public Works with responsibility for achievement of efficiencies and value for money in the procurement of all goods and services for the Irish public service. Since its establishment in 2009, the NPS has made continuous efforts to ensure that Irish print companies are able to take full advantage of the public procurement opportunities that arise and are available to them. The NPS facilitated a seminar for the Print & Packaging Forum in September 2009, which covered all the issues relating to competing for public procurement contracts, such as the Public Procurement regulations, accessing the market opportunities, the tendering process, and general guidance on how companies should approach the preparation of tenders. Further seminars were delivered to ISME and to Chambers of Commerce in 2010 and 2011. The NPS has also produced a leaflet "Top Tendering Tips for Public Sector Contracts" which is freely available, and has delivered workshops in 2011 on public procurement opportunities in association with Enterprise Ireland and Intertrade Ireland.

In addition, the NPS has put in place a Print Panel for small print requirements (below the new threshold for advertising on eTenders of €25,000). All print companies who are interested in public sector work can and should apply to be placed on the print panel. The response had not been as great as was hoped. Of the 700 or so companies that are involved in print, only around 55 are included in the panel, which is available currently to all public sector buyers on www.procurement.ie, together with instructions on how it can be used for low-value tenders. The opportunities for small print requirements should be enhanced by the fact that the NPS has ceased the use of aggregated contracts for a number of print services including bookwork and printed stationery. One significant development in the area of facilitating the SME sector was the publication by the Department of Finance in August 2010 of Circular 10/10. These guidelines to public contracting authorities aim to ensure that tendering processes are carried out in a manner that facilitates participation by SMEs, while ensuring that all procurement is carried out in a manner that is legal, transparent, and secures optimal value for money for the taxpayer. It addresses the concerns that SMEs have regarding access to public procurement opportunities, and highlights practices that are to be avoided, where they can unjustifiably hinder small businesses in competing for public contracts. The new arrangements include:

- greater open advertising of opportunities (threshold now €25,000);

- a reduced requirement for paperwork (such as accounts) at the early stages of tendering;

- an instruction that suppliers are not to be charged for access to tender opportunities;

- an assurance that all criteria used would be appropriate and proportionate; and

- an instruction that turnover and insurance levels would be set at proportionate levels.

All of these actions are consistent with the EU-commissioned research carried out by GHK on Evaluation of SMEs' Access to Public Procurement Markets in the EU (September 2010), DG Enterprise and Industry, which notes that SMEs in Ireland secured greater access to public procurement than in other countries.

In addition to the work being done by the NPS and the Department of Finance, Enterprise Ireland is running strategic workshops to assist companies, such as Management Development workshops, which have been run specifically for the print industry, and Strategic & Change Management programmes. Enterprise Ireland also offers assistance with exports, management development, lean manufacturing, research and development, and overseas offices programmes.

There should be no loss of VAT Revenue to the State where printing requirements of Irish businesses are sent outside the State. The purchaser is liable for VAT on goods acquired from other States within the EU.