Tom Fleming (Kerry South, Independent)
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87. To ask the Minister for Public Expenditure and Reform if he will review the centralisation of purchasing, and aggregation of requirements, resulting in bigger contracts, thereby excluding small and medium size enterprises from the tendering process; his plans to amend the policy of dealing with fewer suppliers as part of public purchases, which is hugely detrimental to small businesses; and if he will make a statement on the matter. [16068/15]

Brendan Howlin (Wexford, Labour)
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The procurement reform programme is an important element of the Government's overall reform programme and is tasked with delivering increased value for money, more accurate and timely data and improvement in the capacity and capability of procurement across the public service. A new model for procurement was approved by the Government in September 2012, with common goods and services to be procured by a new central sourcing organisation, the Office of Government Procurement (OGP), and with central sectoral sourcing organisations in health, education, local government and defence procuring sectoral-specific goods and services.

Common goods and services (such as utilities, professional services and marketing, print and stationery) account for approximately 60% of the State's public procurement spend. Instead of public bodies each tendering separately for these common goods and services, the OGP will put in place contracts for these categories that all public bodies will buy from. Through the OGP, the Public Service will speak with one 'voice' to the market for services under this category of expenditure, eliminating duplication and taking advantage of the scale of public procurement to best effect.

I would point out that reform is being carried out in a manner that recognises the importance of SMEs. The Government acknowledges the significant role that SMEs play in the Irish economy and is committed to ensuring that SMEs are fully engaged with public sector procurement and the opportunities presenting. Circular 10/14 which was issued in April 2014 by my Department is aimed at opening up opportunities for small businesses that want to tender for public contracts and also to ensure that engaging with government procurement is easy and low cost. This guidance set out positive measures that contracting authorities are to take to promote the involvement of smaller enterprises as well as highlighting practices that are to be avoided because they can hinder small businesses in competing for public contracts.

I would also point out that the OGP supports the work of Enterprise Ireland and InterTrade Ireland in building awareness of public procurement and supporting training for small suppliers in bidding for public contracts. For example, in 2014 the OGP supported two "Meet the Buyer" events in Belfast and Dublin which were attended by approximately 1,600 suppliers. The OGP also supported the 'Go 2 Tender' programme run by InterTrade Ireland which was attended by approximately 400 SMEs. This year InterTrade Ireland also delivered a programme on consortia building to assist SMEs to jointly bid for State contracts. 

Strengthening procurement capability in the public sector will improve the value for money that we get from the State's considerable procurement spend and will make a significant contribution to Ireland's deficit reduction targets and enable the State to deliver much needed services more efficiently. The OGP will continue to work with suppliers to ensure that winning Government business is done in a fair, transparent and accessible way and to ensure that Government procurement policies are business friendly.