Jan O'Sullivan (Limerick City, Labour)
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510. To ask the Minister for Public Expenditure and Reform if he will introduce measures to include social value issues in public procurement; if, in advance of such a measure, he will delay the tender for public libraries that is due to be conducted by the education procurement service to incorporate such a provision; and if he will make a statement on the matter. [22278/16]

Paschal Donohoe (Dublin Central, Fine Gael)
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The State spends approximately €12 billion per annum on goods, services and works.  This level of expenditure affords significant business opportunities for firms. The procurement reform is being carried out in a manner that recognises the clear importance of small and medium-sized enterprises to the country's economic recovery. European and National rules ensure that procurement processes must be transparent and equitable in the treatment of all suppliers. The Office of Government Procurement (OGP) has estimated that approximately 93% of this annual procurement spend goes to Irish suppliers which illustrates that public procurement activity is a significant enabler of employment and economic activity within the State. 

The recently transposed EU rules on Public Procurement are designed to facilitate SMEs to tender for public sector procurement contracts. Measures specifically designed to improve access for SMEs and start-ups include:

- financial capacity criterion is less onerous; it is generally limited to twice contract value;

- use of a self-declaration (European Single Procurement Document) of compliance with selection and exclusion criteria by suppliers should reduce the cost of participation;

- the discretion to divide public contracts into lots, with the proviso that opting not to divide a contract into lots must be explained;

- provision for "consortia bidding" to encourage SME involvement.

A number of these measures were included in Circular 10/14 issued by the OGP in advance of transposition; a measure broadly welcomed by SME representative bodies at the time.

The reform of public procurement across the public service is on-going and will continue to provide opportunities to the SME sector to win business. The OGP will continue to work with industry and state agencies 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.

In relation to the tender for public libraries, this is a matter for my colleague the Minister for Housing, Planning, Community and Local Government.