Bernard Durkan (Kildare North, Fine Gael)
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317. To ask the Minister for Public Expenditure and Reform the extent to which procurement has featured in a positive way, in the context of achieving savings, in the course of the past four years; and if he will make a statement on the matter. [18660/15]

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.  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. Public Procurement savings are necessary to enable public service organisations deliver much needed services within the tighter budgets that they must now operate.

Since the start of the Procurement Reform Programme savings of €100m in 2013 and 2014 have been reported by the OGP and its partners, equivalent to saving 2,000 front-line jobs.  The €100m excludes €16.5m in Utilities savings from OGP sourcing activity in 2014 as this would be regarded as a cost avoidance procurement benefit rather than a cash saving as the savings arise from beating inflation.

However, I would point out that reforms in this area are 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 issued in 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 add that the OGP supports the work of Enterprise Ireland and InterTradeIreland in building awareness of public procurement and supporting training for small suppliers in bidding for public contracts.  For example, last year the Office of Government Procurement supported two "Meet the Buyer" events in Belfast and Dublin which were attended by over 1,100 suppliers. The Office of Government Procurement also supported the 'Go 2 Tender' programme run by InterTrade Ireland which was attended by approximately 400 SME's. This year InterTrade Ireland also delivered a programme on consortia building to assist SME's to jointly bid for state contracts. 

The OGP will continue to work with suppliers and business representatives 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.