Joan Burton (Dublin West, Labour)
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160. To ask the Minister for Public Expenditure and Reform his plans to make it a condition of public tenders and State contracts that suppliers must pay a minimum living wage of €11.70 per hour; and if he will make a statement on the matter. [7029/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The rationale for the EU public procurement regime is to open up the public procurement market and to ensure the free movement of goods, services and works within the EU. This is reflected in primary EU Law where the EU Treaty on the Functioning of the European Union promotes the fundamental principles of non-discrimination, free movement of goods and services and freedom of establishment. These principles are reinforced in secondary EU law where the EU Directives on public procurement set out precise rules and procedures designed to ensure equal treatment, mutual recognition, proportionality and transparency in the awarding of public contracts.

EU rules require tenderers to be compliant with relevant labour law in order to participate in a public procurement process. The Directives make it clear that non-compliance with the relevant obligations may lead to exclusion of a tenderer from the procedure for the awarding of a public contract. The obligations on suppliers in relation to compliance with labour law are reflected in the template request for tender and contract documents for goods and services developed by the Office of Government Procurement in conjunction with the Office of the Chief State Solicitor.

In relation to the specific issue of the living wage, there is, however, no legal basis in Irish law to make it a requirement on suppliers who wish to engage in public tendering.  In addition, at EU level, any attempt to set wage rates through public procurement is also likely be viewed as protectionist and/or discriminatory and in breach of the EU Treaty principles enshrined in EU procurement directives.  The National minimum wage, of course, applies to all contracts, public and private.