Robert Dowds (Dublin Mid West, Labour)
Link to this: Individually | In context | Oireachtas source

214. To ask the Minister for Public Expenditure and Reform his plans to ensure that off shore, non EU registered companies can be prevented from getting public contracts here; and if he will make a statement on the matter. [37027/14]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

Under EU Directives, and the World Trade Organisation (WTO) Government Procurement Agreement, the public procurement of works, supplies and service contracts above certain thresholds must be advertised awarded on the basis of objective and non-restrictive criteria.

For works contracts the threshold is €5.186 million; for supplies and service contracts awarded by Government Departments the threshold is €134,000 and for the remainder of public bodies the threshold is €207,000. The threshold for supplies and service contracts of entities operating in utility sectors (water, energy, transport and postal) is €414,000. For contracts below these thresholds, the general requirement is that they be advertised on the national public procurement website or, depending on value, awarded on the basis of a competitive process of direct invitation to an adequate number of suppliers.

The aim of these European rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money. It would be a breach of the rules for a public body to 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.

The Office of Government Procurement (OGP) is responsible for producing annual statistical information in relation to above-EU threshold procurement activity by the Irish public sector and for providing these statistics to the European Commission. The EU average for cross border activity in relation to above threshold procurements is 1.4%. I am informed that the figure of 28% is not based on OGP data. The following information has been complied by the OGP and is based on data available on above EU threshold awards.

In 2011, 10.55% (valued at €240 million) of the total known awarded contracts above threshold by the State went to non-domestic companies. This represents less than 5% of the overall annual public procurement spend (approximately €13.1 billion). I am advised by the OGP that more up to date data on above EU threshold contracts for 2012 and 2013 will be available shortly.

It is important to remember that open tendering is a two way street and that it provides Irish companies with opportunities to compete abroad. The public procurement market in the EU is estimated to be valued in excess of €2.4 trillion. In this regard, it is worth pointing out that the open market regime offers opportunities for Irish companies to win business abroad.