Derek Nolan (Galway West, Labour)
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To ask the Minister for Public Expenditure and Reform if his attention has been drawn to the problem that small and medium enterprises are having in being unable to tender for contract because of protocol stating that they must have a turnover of at least €3 million even in situations where they are supplying the product at a cheaper price; his views on whether this process is supportive to SMEs; and if he will make a statement on the matter. [17324/13]

Brendan Howlin (Wexford, Labour)
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There are no centrally imposed requirements for a minimum turnover. 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 (Circular 10/10) 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.

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 must logically be developed on a case by case basis with reference to the specific needs of the contract.

I have arranged for my Department to remind public bodies about this aspect of the public procurement guidance and the importance of contracting authorities ensuring they implement it appropriately.