Fiona O'Loughlin (Kildare South, Fianna Fail)
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104. To ask the Minister for Public Expenditure and Reform if semi-State bodies are obliged to give tenders to Irish companies if prices are comparative with foreign companies; and if he will make a statement on the matter. [42097/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Public procurement is the acquisition, whether under formal contract or not, of works, supplies and services by public bodies.  National rules governing public procurement must comply with the relevant EU, WTO and national legal requirements and obligations.  Under EU law, public contracts above a certain value must be advertised EU-wide and awarded to the most competitive tender in an open and objective process. The aim of European and national 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 location or nationality and there are legal remedies which may be used against any public body infringing these rules.

It is the responsibility of each contracting authority to ensure that tenderers comply with all the requirements of the process. 

My colleague, Minister of State Patrick O’Donovan, launched the Office of Government Procurement’s (OGP) Public Service Spend and Tender Analysis Report for 2015 report in September.  This is the OGP’s third annual report that analyses expenditure and tendering activity on goods, services and minor works across public service bodies in Ireland.  I would point out that the analysis is encouraging, indicating that 94% of the State’s expenditure is with firms within the State.

Finally, it is also important to remember that open tendering is a two way street and that it provides Irish companies with opportunities to compete abroad. Public expenditure on goods, works, and services representing approximately 14% of EU GDP with an annual value of nearly €2 trillion. The open market regime offers opportunities for Irish companies to win business abroad and reliable EU studies indicate that many Irish businesses are successful in this regard.