Seán Fleming (Laois-Offaly, Fianna Fail)
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To ask the Minister for Public Expenditure and Reform if he re-examine the prequalification criteria in respect of turnover of contractors who wish to tender for public contracts; and if he will make a statement on the matter. [54104/12]

Brendan Howlin (Wexford, Labour)
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The assessment of a tenderer’s financial and economic standing is a key part of any procurement process. Establishing the appropriate suitability criteria that are relevant and appropriate to a particular contract is, of course, a matter for the contracting authority concerned. This is because the contracting authority is in the best position to gauge the appropriate levels of financial capacity that are appropriate to the needs of that specific contract. Therefore there are no centrally imposed requirements for a minimum turnover. Such requirements would logically be developed on a case by case basis with reference to the specific needs of the contract.

The Government recognises that the small and medium enterprise (SME) sector is very important to the economy and that public procurement can be a source of business for SMEs. In this regard, my Department has issued public procurement guidelines to public bodies which are aimed at facilitating greater participation of SMEs in public procurement opportunities. In relation to suitability criteria, the guidelines stress that public bodies must ensure that any criteria/turnover levels set by them must be both justifiable and proportionate to the needs of the contract.