Dominic Hannigan (Meath East, Labour)
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82. To ask the Minister for Public Expenditure and Reform when he expect the recommendations of the two-year review of EU public procurement law, which was passed by the European Parliament this week, to be implemented by local authorities and Government bodies here; and if he will make a statement on the matter. [3013/14]

Brendan Howlin (Wexford, Labour)
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The Irish Presidency completed detailed, lengthy and complex negotiations with the European Parliament, and achieved agreement on the Public Procurement Package (Classical Directive, Utilities Directive and Concessions* Directive).

These Directives will make it easier for businesses and SMEs to tender for procurement contracts. Administrative burdens will be reduced, procurement procedures simplified, and costs related to tendering lowered by making procurement systems more transparent. The use of e-procurement will also simplify the processes and foster greater competition. It will strengthen the generation of jobs and growth, given that public authorities across the European Union spend approximately €2 trillion per annum (some 19% of EU GDP) on the procurement of goods, services and works.

Some of the measures included in the reform of the general procurement rules that will facilitate SME involvement include:

- Acceptance of self-declarations until the award stage and the promotion of e-procurement with mandatory electronic availability of procurement documents;

- Except in justified cases, turnover requirements are to be explicitly limited to two times the estimated contract value;

- Contracting Authorities will now have to comply or explain in relation to the division of contracts into lots;

- Member states will be required to provide the Commission with detail on SME participation. Such monitoring can support consistent application across all Member States and ensure that the objective of greater SME involvement is being delivered.

In addition, the new Directive on concessions will be ensure Union wide competition for high value concessions where the most efficient providers are given a fair chance of winning the contract. This will enable Irish business to have greater access to high value contracts within the EU.

Given current budgetary constraints it is vital that the public procurement market works effectively to deliver value for money. Inflexible procedures, which limit the ability to negotiate, have restricted the opportunities to promote innovation in public procurement. There will be a new innovation partnership procedure in both the Classical and Utilities Directives. The shortening of times limits and greater flexibility in the choice of procedure can facilitate delivery of value for money by contracting authorities alongside the provision of innovative solutions.

In summary, the package will promote simplified procurement, better access for SMEs, sound procedures and governance, and improved value for money. While the transposition of these new rules is a priority for Government, it is important to ensure that the transposition is carried out in a manner that maximises the aforementioned benefits. Member States have two years to transpose the three Directives. However, I am keen to ensure that Ireland can avail of the flexibility afforded by these Directives and with this in mind my officials are prioritising this area of work with the view to completion by early next year.

* Concessions are partnerships between the public sector and mostly private companies, where the latter exclusively operate, maintain and carry out the development of infrastructure (i.e. ports, water distribution, parking garages, toll roads) or provide services of general economic interest (energy, water and waste disposal).