Written answers

Thursday, 19 July 2012

Department of Public Expenditure and Reform

Public Procurement

5:00 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Question 284: To ask the Minister for Public Expenditure and Reform his assessment of the potential savings that can be made through an all-Island approach to the procurement and tendering for the supply of Government goods and services. [36814/12]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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As part of the Public Service Reform Plan, my Department is examining ways to improve collaborative procurement arrangements across the public service. Where feasible such arrangements could include an all-island approach to procuring certain commonly acquired goods and services. The development of an increased supplier base on an all-island basis has the potential to deliver procurement savings from increased competition. In this regard, the main procurement and development bodies on the island, with ministerial support, are assisting the SME sector in accessing the all-island €20bn public procurement market. Such assistance includes the hosting of "Meet-the-Buyer" events by Intertrade Ireland, along with the National Procurement Service, Enterprise Ireland and their counterparts in Northern Ireland, the Central Procurement Directorate, the Strategic Investment Board and Invest Northern Ireland. These workshops, two of which have already been held, in November 2011 in Dundalk and May 2012 in Athlone, have been successful in attracting small and medium-sized enterprises, with over 400 SMEs attending the Athlone event. These events are targeted at fostering increased SME participation in tendering for public goods and service contracts. Two further workshops will take place this year in Cookstown in September and Kilkenny in November.

Comments

Anne Frawley
Posted on 26 Jul 2012 3:07 pm (Report this comment)

On what basis does the Minister maintain a collaborative procurement arrangement delivers increased competition in the shorter and longer term.?

In the case where UK companies ( these would include NI where Uk suppliers provide NI accounts with a sterling trade price list) and these same UK suppliers supply out-lets in the Republic with the sterling price list converted to 1.40 and 1.50 exchange rates - effectively eliminating domestic Irish companies from competing for these tenders - -resulting in additions to the live register and loss of domestic exchequer returns - what risk assessment has been carried out on the broader aspects of this collective policy and what cost has been evaluated for this figure verses savings for the Irish taxpayer given that additions to the live register are a current and future cost?

As domestic competitors are being removed form the market by this collective process what provision has
NPA and the Minister's department taken to insure that future costs on these purchases will not increase negatively once there is no domestic competition ?

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