Éamon Ó Cuív (Galway West, Fianna Fail)
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108. To ask the Minister for Public Expenditure and Reform if consideration is being given to reducing the turnover requirements for public tenders to ensure that smaller suppliers of goods and services are not unnecessarily precluded from tendering for projects, to encourage more competition and to allow local companies bid for contracts in their own area, particularly in rural Ireland; and if he will make a statement on the matter. [18670/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The assessment of a tenderer's financial and economic standing is a key part of any procurement process. Establishing the appropriate suitability criteria that are relevant and appropriate to a particular contract is, of course, a matter for the contracting authority concerned. This is because the contracting authority is in the best position to gauge the appropriate levels of financial capacity that are appropriate to the needs of that specific contract. Therefore, there are no centrally imposed requirements for a minimum turnover. Such requirements must logically be developed on a case by case basis with reference to the specific needs of the contract, balancing the risk of contractors failing to perform the contract with encouraging more competition.

However, the Government recognises that the small and medium enterprise (SME) sector is very important to the economy and that public procurement can be a source of business for SMEs. In this regard, Government Policy, as set out in Circular 10/14: Initiatives to assist SMEs in Public Procurement issued by my Department, is aimed at facilitating greater participation of SMEs in public procurement opportunities.  In relation to suitability criteria, the circular stresses that public bodies must ensure that any criteria/turnover levels set by them should be both justifiable and proportionate to the needs of the contract and, a matter of general policy, should not for routine goods and services competitions set company turnover requirements at more than twice the estimated contract value.

The Office of Government Procurement through its engagement with public bodies and SME representative bodies is ensuring that this message continues to be highlighted.