Dara Calleary (Mayo, Fianna Fail)
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To ask the Minister for Education and Skills the reason a vocational education committee (details supplied) is not tendering for heating oil and instead is extending its contract with the previous supplier whose contract expired in April 2012; his views on whether this represents the best option for the taxpayer. [51683/12]

Ruairi Quinn (Dublin South East, Labour)
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The VEC to which the Deputy refers has confirmed to my Department that the contract with its supplier for heating oil ended on the 30th April 2012. As its schools and centres were closed over the summer months and there was no ordering requirement, and on the basis that a new Public Procurement Framework Agreement for the procurement of Bulk Liquid Fuels would be in place in the Autumn of 2012, the VEC extended its contract with the supplier, with the retention of existing rebates. In the event the Framework Agreement was not in place, although my understanding is that it is intended that it will be early in 2013.

The VEC has informed my Department that the existing rebates offer value for money as they include a guaranteed automatic price reduction to the variable market price. The VEC receives price notifications on a weekly basis from the provider which outline market price and the applicable rebate.

It is my Department's view that VECs, whether commissioning public services or providing them directly, have a duty to strive for economy, efficiency, transparency and effectiveness in their expenditure. Circular 39/2011 drew the attention of VECs to their obligations with regard to procurement, to the importance of adherence to EU Directives and national regulations in regard to advertising, and to the use of objective tendering procedures for awarding contracts above certain value thresholds.

CEOs were reminded in Circular 39/2011 that, as public servants, they have a responsibility to ensure that funds provided by the Exchequer are expended in a manner which is economic, efficient, transparent, and effective and achieves the very best value for the taxpayer. My Department will remind the CEO of the VEC of the obligations under Circular 39/2011.