Bernard Durkan (Kildare North, Fine Gael)
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78. To ask the Minister for Public Expenditure and Reform the degree to which public procurement and reform thereto continues to be part of Government policy with particular reference to the need to ensure maximum economic benefit whilst maintaining good procurement practice and indigenous resourcing; and if he will make a statement on the matter. [21921/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Public Procurement is governed by EU and National rules and guidelines. The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.

Procurement reform is a key element of the Government's overall reform programme and is aimed at delivering increased value for money, and having a strategic approach to public procurement across the public sector.

A key element of the reform programme has been to ensure it is being carried out in a manner that recognises the importance of small and medium-sized enterprises as the engine room of our economy. The aim is to drive fair, transparent and open competition in the marketplace but also to work with business to ensure that government procurement policies are business friendly.

The Government has committed in the Programme for a Partnership Government to refining the new procurement structures in place and to make adjustments according to best international practice and in conjunction with Irish business.

My colleague, Minister of State Patrick O'Donovan chairs the SME Advisory Group in accordance with the Programme for Government. He hears at first hand the concerns of industry at these quarterly meetings. Representatives include the OGP, the Department of Business, Enterprise and Innovation, Enterprise Ireland (EI), InterTrade Ireland (ITI), the Competition and Consumer Protection Commission (CCPC), the Irish Business and Employers' Confederation (IBEC), the Small Firms Association (SFA), the Construction Industry Federation (CIF), Chambers Ireland and the Irish Small and Medium Enterprises Association (ISME).

Minister of State O'Donovan also launched the OGP's Public Service Spend and Tender Analysis Report for 2015 report last 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 in the order of €2 trillion. The open market regime offers opportunities for Irish companies to win business abroad and EU studies indicate that many Irish businesses are successful in this regard.