Dáil Éireann debate -
Tuesday, 30 May 2000

Vol. 520 No. 1

Written Answers. - EU Directives.

Bernard Allen

Question:

213 Mr. Allen asked the Minister for Health and Children if he will make a statement on a report (details supplied) that some Irish hospitals and health agencies may be breaching European laws covering the tendering of contracts; and if he has satisfied himself that hospitals, which are obliged to publish and publicly tender contracts worth more than £160,000, are adhering to the legislative guidelines. [15125/00]

Minister for Health and Children (Mr. Martin)

All health agencies are informed on an ongoing basis of their legal obligations to comply with the relevant EU directives in relation to the purchase of goods and services.

More recently, in December 1999, agencies were informed of the revised financial thresholds taking effect from 1 January 2000 and the need to comply with advertising rules for tenders above these thresholds. The current threshold for advertising services and supplies contracts in the Official Journal of the European Community is, in general, set at r214,326 (£168,795). There are a few exceptions in relation to contracts when this threshold is reduced to t200,000 (£157,517).

Structures have been put in place to assist in the implementation of and compliance with EU directives. These include the establishment of the healthcare materials management board (HMMB), the appointment of a general manager for the HMMB and the appointment in each health board/authority area of a regional materials manager. In addition, each agency has been advised by my Department as recently as February 2000 to make full use of the investment in these structures so as to exploit every opportunity to maximise economies of scale in procurement. Agencies were also informed that they must be in a position to demonstrate that all contracts are awarded in full compliance with statutory requirements and best procurement practice.

In relation to capital projects, my Department has also brought all relevant EU directives on tendering to the attention of the health boards and the ERHA. Boards have been asked to comply with these directives where applicable, in the context of delivering my Department's capital programme.

I note that the article referred to concern expressed in regard to whether the agreement between my Department and the Irish Pharmaceutical Healthcare Association on the supply, terms and pricing of medicines to the health services was in line with EU law. In accordance with the terms of EU Council Directive 89/105/EEC of 21 December 1988 relating to the transparency of measures regulating the pricing of medicinal products for human use and their inclusion in the scope of national health insurance systems, the Commission was notified of the terms of the current agreement. I should point out that the agreement recognises the obligation to comply with EU procurement directives. Furthermore, health boards and hospitals have been reminded by way of circular letter of their obligations in this regard.

If the Deputy is aware of specific instances where EU directives for tendering procedures in respect of contracts were not complied with, he should raise the matter directly with the chief executive officer of the relevant health board/authority.