Written answers
Wednesday, 17 April 2013
Department of Education and Skills
Public Procurement Regulations
Séamus Kirk (Louth, Fianna Fail)
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To ask the Minister for Education and Skills if he will provide an update on the efforts he has made to ensure that schools will continue to be able to purchase stationery supplies from small local businesses if they can offer better similar or better value to that is available from the national suppliers designated under new procurement guidelines; and if he will make a statement on the matter. [17539/13]
Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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To ask the Minister for Education and Skills if he will provide an update on the action he has taken to ensure that schools will continue to be able to purchase stationery supplies from small local businesses if they can better similar or better value to that is available from the national suppliers designated under new procurement guidelines; and if he will make a statement on the matter. [17554/13]
Ruairi Quinn (Dublin South East, Labour)
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I propose to take Questions Nos. 28 and 69 together.
Given the potential benefits that can be realised across the public sector, public procurement is one of the major projects of key strategic importance under the Government's Public Service Reform Plan. The Public Service Reform Plan, published in November 2011, provides for the development of a new policy framework for procurement. This work is now being led by the newly appointed Chief Procurement Officer, Paul Quinn. Under his leadership a new national procurement office for the public sector is being established. Paul is currently working with officials across the public sector to put in place new sectoral and centralised procurement arrangements.
My colleague Minister Howlin has highlighted the importance of ensuring that the public sector is achieving maximum value for money and operational efficiency in its approach to public procurement. Centralising the procurement of commonly used goods and services can deliver significant benefits which include: cash savings; administrative savings from reduced duplication of tendering; greater purchasing expertise; improved consistency and enhanced service levels. In addition, given the financial constraints within which we must all now work, cost reductions and savings can go some way to helping Exchequer funded bodies, such as schools, manage within reducing financial budgets.
The Deputies may be aware that the National Procurement Service (NPS) is supporting Small and Medium Business Enterprises (SMEs) to participate in public sector procurement competitions through its education and guidance strategies. All of the NPS tender documents explicitly seek to encourage the participation of SMEs in competitions, by encouraging them to explore the possibilities of forming relationships with other SMEs or with larger enterprises.
I understand that Irish SMEs have been successful in winning NPS frameworks and about three quarters of existing NPS contracts/frameworks are held by SMEs. These SMEs may, in turn, source many of their services and products from local manufacturers and agents. However, I do appreciate the concerns being raised by small school supply companies and I have asked relevant officials here in the Department, who are coordinating procurement reform in the Education and Training sector, to take these concerns into consideration in the context of the work being undertaken on procurement reform.
Comments
Anne Frawley
Posted on 24 Apr 2013 10:22 am (Report this comment)
The Minister says: "The Deputies may be aware that the National Procurement Service (NPS) is supporting Small and Medium Business Enterprises (SMEs) to participate in public sector procurement competitions through its education and guidance strategies. All of the NPS tender documents explicitly seek to encourage the participation of SMEs in competitions, by encouraging them to explore the possibilities of forming relationships with other SMEs or with larger enterprises"
This shows a complete lack of understanding on what is going on in the real market by both the Minister and his officials. The problem lies with the the originating suppliers - in Ireland's case many of these are located in the Uk. These would be companies who own a particular brand or have secured the rights of supply into Ireland. Our "esteemed" top echelons civil servants didn't think it prudent to ensure that
such UK companies must register with the Irish Revenue from the out-set, must show the Irish State that they have Irish structures in place to service the Irish marketplace, must provide a Irish trade price list that is in keeping with their UK sterling trade price list. Consequently it doesn't really matter what SMES do - effectively these UK suppliers and UK retailers have "excluded" the Irish domestic supply chain from competing in a fair manner. Real fair competition that. Ironic is it not that our own State allowed this and now under a claim of saving the taxpayer it is rewarding UK companies some of whom "ripped Ireland off" by making it easier for them to secure Irish tendering sales and along with the sales they already extract form our economy based on unfair euro trading pricing verses sterling trade pricing. Add in to this that this pricing additionally then gives UK internet sites(Direct sales inwards) a very unfair advantage.
Irish businesses have a right to a fair level playing field - they have not got this as a result of State and EU policy - they are due compensation for these unforgivable policies.
Now want to take to me about the effect this has on our core taxation? and I haven't even raised concerns on the vat grouping process ( another highly flawed procedure) or financial regulation 8 which yet again favours out-side interests.
Anne Frawley
Posted on 24 Apr 2013 8:31 am (This comment has been reported to moderators)
As per Minister Howlins reply on procurement the Minister can not claim savings in this sector when small "apparent" savings are giving rise to substantial costs to the exchequer as the recent tender for library supplies showed. For an apparent saving of 7k in current year it cost the exchequer 180K plus year on, and likely year 2 and likely year 3. etc
Add in that the State has lessen tax return to the exchequer as a result of its policy, add in that they have removed competition and in so doing have increased the probability that future tendering costs in this sector (and others) will carry an inflated cost to the exchequer.
This is an appalling procurement policy in an country in recession. That Ireland rates as one of the highest issuers within the EU of out-side tendering giving rise to the fact that Irish taxpayer money is going to out-side interests rather than recycling is shameful.
That this policy is being lauded by elected representatives and pushed by top echelon civil servants whom the Irish taxpayer borrowed to pay their wages and pensions is disgraceful.
Neither Minister Howlin and Minister Quinn should want to be associated with this flawed policy or the damaging effects it is giving rise to small and medium businesses and the costs it is imposing on an over stretched social welfare budget and Irish exchequer.