Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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17. To ask the Minister for Public Expenditure and Reform the criteria and guidelines for the tendering of contracts by public bodies; his views on whether they are sufficiently robust to ensure such contracts contribute to the imperative to create jobs and more generally contribute to the growth of the Irish economy; and if he will make a statement on the matter. [29620/14]

Brendan Howlin (Wexford, Labour)
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Contracts are awarded following a competitive process conducted in compliance with the National and EU rules.  The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.  Public bodies cannot favour or discriminate against particular candidates on grounds of nationality and there are legal remedies which may be used against any public body infringing these rules. It is the responsibility of each contracting authority to ensure that tenderers comply with all the requirements of the process. 

The State has immense purchasing power, spending in the region of €13 billion per annum on goods, services and works.  This level of expenditure affords significant business opportunities for firms that can supply the products and services that are required by public bodies.  The Office of Government Procurement estimates that approximately 95% of this annual procurement spend goes to Irish suppliers. It is clear therefore that public procurement activity is already a significant driver of employment opportunities and economic growth within the State. 

As the Deputy is aware, my Department issued new procurement guidelines and procedures in April of this year to ensure that engaging with government procurement is easy and low cost.  The initiatives announced in Circular 10/14 will open up opportunities for small businesses to bid for State business.  It will also help to simplify and streamline the public procurement process, and reduce the administrative burden on businesses that want to tender for public contracts.

Businesses who are successful in winning public contracts often win repeat business and given the consistent nature of public procurement processes, are often well placed to win public business abroad. (The public procurement market in the EU is estimated to be valued in excess of €2.4 trillion annually.)  As a Government we want to see Irish business being competitive and winning business both here and abroad.