Mary Lou McDonald (Dublin Central, Sinn Fein)
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309. To ask the Minister for Public Expenditure and Reform the public procurement policies that will help strengthen the Small and Medium Enterprise sector enabling innovative businesses to win Government contracts as committed to in the Public Service Reform Plan 2014-2016. [2906/14]

Brendan Howlin (Wexford, Labour)
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I am keenly aware that public procurement can be an important source of business for Irish small and medium enterprises (SMEs). I am also aware of the need for Departments and Offices to make every effort to contain and reduce all administrative costs to ensure the continued provision of much needed public services. In this regard, the recently established Office of Government Procurement is engaged in an ambitious reform programme designed to deliver cost reductions for commonly acquired goods and services; increased levels of professionalism among staff responsible for procurement; and better performance management of the central procurement function.

Public Procurement can be an enabler of private sector innovation. The Government recognises that innovative companies can offer solutions to the needs of public sector bodies with lower whole-of-life costs than more conventional purchases. Winning public sector contracts with innovative solutions also serves as an important reference point for companies who wish to sell those products or services in overseas markets.

In the context of the overall reform of the public procurement structures in Ireland, the Government's priorities in relation to procurement are to:- review and update the Government's Procurement guidelines and procedures to address any obstacles to SMEs participating as fully as possible in the public procurement process;- improve the capacity of SMEs to tender for public sector contracts.

The Office of Government Procurement will address these priorities by:- simplifying tender documentation which will help both businesses and buyers to reduce administrative costs;- subdividing larger contracts into smaller "lots";- encouraging SME's to create consortia to compete with larger businesses;- engaging with Business Representative Groups to identify and resolve issues;- educating buyers and suppliers regarding public procurement practices;- ensuring engaging with government procurement is easy and low cost, with proportional financial and other qualification criteria, and proportional contract terms and conditions; and,- operating and updating a single procurement web portal for supplier to receive information, register and to receive alerts.

To summarise: we in government want better value for money for our substantial procurement spend. We are also committed to ensuring that SMEs are fully engaged in the process and will be encouraged, where necessary, to form alliances and networks to ensure they can tender on a competitive basis for this work.