Mick Wallace (Wexford, Independent)
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24. To ask the Minister for Public Expenditure and Reform the criteria and the measures undertaken for the awarding of public contracts, with regard to ensuring that indigenous Irish companies receive fair access to this valuable work; and if he will make a statement on the matter. [42062/14]

Brendan Howlin (Wexford, Labour)
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The reform of the procurement system across the public service is a key element of the reform programme for the public service.  Public Procurement savings enable public service organisations deliver much needed services within the tighter budgets that they must now operate within. The fragmented procurement arrangements across the public service have enabled suppliers to charge different public service bodies different prices for the same goods and services. This is not sustainable, as the State cannot afford to continue to purchase works, goods and services in a manner that undermines the level of services it can deliver.   

Reforms are being carried out in a manner that recognises the importance of SMEs in the economic recovery of the country.  The establishment of the Office of Government Procurement is a key element to bringing a more professional and whole of government approach to procurement. It will drive fair, transparent and open competition in the marketplace but also continue to work with business to ensure that government procurement policies are business friendly.

The State has immense purchasing power, spending in the region of €12 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. 

Circular 10/14  issued in April of this year 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 sector contracts 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.