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Seanad Éireann debate -
Tuesday, 13 Dec 2022

Vol. 290 No. 13

Quality in Public Procurement (Contract Preparation and Award Criteria) Bill 2021: Report and Final Stages

I move amendment No. 1:

In page 7, to delete lines 32 to 40, and in page 8, to delete lines 1 to 23 and substitute the following:

“Compliance with Irish Human Rights and Equality Commission Act 2014 and related matters

5. (1) Where, in performing its functions for the purposes of section 42 of the Irish Human Rights and Equality Commission Act 2014, a public body within the meaning of section 2 of that Act is also a contracting authority under Public Authority Contracts Regulations, then—

(a) in addition to complying with paragraph (4) of Regulation 84 of those Regulations, it shall maintain documentation to record the manner in which it has complied with the said section 42 as if it were required to be included in that paragraph, and

(b) where appropriate, the other provisions of the said regulation 84 shall apply accordingly.

(2) For the purposes of subsection (1) but without prejudice to the reference in subsection (1) to functions, the documentation referred to in subsection (1) shall, in particular, record information on the preparation, allocation and granting of contracts governed by the Public Authority Contracts Regulations.

(3) For the purposes of the annual review by the Minister under section 7(2)(f), a contracting authority to which subsection (1) applies shall make a return to the Minister, within such time and in such form as he or she designates, in respect of the performance by the authority concerned of the matters to which those subsections relate during the period concerned.”.

I second the amendment.

I welcome the Minister of State, Deputy Smyth. I am delighted to have the opportunity to move forward with this legislation. This amendment seeks to replace the existing section 5 of the Bill. It responds to reasonable concerns that the Minister of State's office and Department raised about the previous version of this section, which looks to ensure we report on compliance regarding human rights. It referred to the European Convention on Human Rights and the Irish Human Rights and Equality Commission Act 2014. There were concerns about the European Convention on Human Rights, the legislation attached to it, and the definitions of public authorities in that regard, as well as the fact that it is already legislated for. The essence of what I want to do with this section is to narrow it down by removing those references to the ECHR and focusing on what was the second part, but is now the only part of this section, which relates to compliance with the Irish Human Rights and Equality Commission Act 2014. The requirement to reflect human rights and equality in procurement is already there. This amendment ensures that when we have reports on procurement, they report on the manner in which there was compliance with this and how it was reflected. Anything that encourages public authorities to consider and reflect on human rights and equality issues when they are designing procurement is important.

I will not go into the other sections of the Bill. We are not discussing them today and I know they will be discussed in the Dáil. I genuinely believe that we get far better economic advantage for the State by applying a price and quality approach rather than a lowest cost approach. Crucially, this is not just about the State and public authorities' expenditure. The impact of good or bad procurement practices is most felt by those who are using or relying on public services and the goods that the State purchases. If we get something that is shoddy or falls short, it is not just bad value but can have significant consequences.

One example that I imagine is still on people's minds is CervicalCheck and the Scally report, which clearly identified the failure to apply quality criteria. That contract was awarded on a price-only approach without quality criteria, when the right to health is so fundamental and the right to health for women was so significantly impacted by some of the consequences of that process. This is an example whereby thinking about the rights and equality not just of those involved in the procurement process but also of the end users and receivers of the services and goods is appropriate for public authorities. I believe this section will help to remind them to do it and make sure they report on how they do it. Maybe they will learn from each other in those reports so that those public authorities that apply best practice on this can, through the fact they are reporting on it, give encouragement to other local authorities to apply that public duty to equality and human rights more robustly.

I am delighted to have the Minister of State here. This is a worthwhile Bill. Senator Higgins has done a lot of work on it. The couple of amendments she has tabled have been fully thrashed out already. Senator Higgins certainly has our support on it. I am sure the Bill will see speedy passage to the Dáil, depending on the Minister of State.

I thank Senator Higgins for her considered amendment. I know she is trying to do the right thing, that her heart is in the right place, and that she put a lot of work into this. I am not opposing this amendment. I thank the Senator.

Amendment agreed to.

I move amendment No. 2:

In page 8, to delete lines 29 to 41 and substitute the following:

“foregoing such guidelines shall include—

(a) guidance concerning the use and incorporation of qualitative, environmental, social, human rights and equality considerations in the preparation of the procurement procedure of such contracts,

(b) examples, for contracting authorities, of qualitative, environmental, social, human rights and equality considerations that may arise in such procurement, and

(c) examples of regulations, national strategic policies, legal obligations, EU directives and international commitments that might be considered or reflected in the preparation or design of procurement procedure or contracts.

(2) The Minister shall cause a copy of any guidelines issued under subsection (1) to be laid before each House of the Oireachtas as soon as practicable.

(3) Contracting authorities shall consider any guidelines issued under subsection (1).

(4) For the purposes of the Public Authority Contracts Regulations, a contracting authority shall include within a report to which Regulation 84 of those Regulations relates a record of their consideration and application of guidelines issued under subsection (1).”.

I second the amendment.

Amendment No. 2 follows discussions that I had with the Minister of State's office and officials. I have looked at my own legal advice and how to strengthen the Bill afterwards. I am confident about the provisions under sections 3 and 4. I believe they are well balanced and give a suitable level of discretion to public authorities with regard to how they apply the legislation. I was conscious that it was possible that section 6 could be read in a way which seemed overly prescriptive and seemed not to recognise the discretion of public authorities or to address the fact that in different public authorities and different procurement processes, some guidelines will be appropriate to some processes but not to others. There are different factors. The Minister of State made a good point.

I am talking about guidelines, because we need to support public authorities in how they apply these factors and quality criteria. There are also existing guidelines under other Departments that have particular expertise and insights. The amendment would substantially changed this section, but in a way that would address many of the concerns that have been raised. I do not see it as weakening the section but more as making sure that it is clearly framed as guidance rather than as a requirement. We are giving the potential for an opt-out, but making it, in very strong terms, the preferred option that price quality criteria would be applied. As the Minister of State is aware, in the context of very large public projects, I am pressing that 50% at least would be quality criteria. I refer to the projects of major scale, such as, for example, those in the national development plan. There was a majority on price and only a minority on quality in respect of the children's hospital, and the consequences of that have been seen. If we are putting that requirement on public authorities, it is appropriate that we try to give support and guidance to them when they look to say which quality criteria they should apply.

This amendment came from my engagement with the Office of Government Procurement in the previous Oireachtas. One of the things it identified is that it is at the design stage of a request for tender that we can get things right. Sometimes, we cannot just add a criterion in after the fact. It must reflect the purpose of the request for tender, so the request for tender itself must be designed in a way that delivers the most. Sometimes, that means having a request for tender that, for example, includes the phrase "to deliver a playground which promotes inclusion". It is a matter of putting those clauses in because that then gives us the ability to look to quality criteria relating to inclusion and disability, as well as the delivery of slides and swings. That is the reason having guidelines is important. I understand that they were seen to be too prescriptive. What I have done here is very much framed it as guidance by using the phrase "guidance concerning the use and incorporation of qualitative, environmental, social, human rights and equality considerations in the preparation of the procurement procedure". To make it clear that it is not exhaustive, the amendment also calls for "examples, for contracting authorities, of qualitative, environmental, social, human rights and equality considerations that may arise". It is one of the most useful things for contracting authorities if they can look to examples of how others managed to incorporate these factors and reflect them in the design of a request for tenders.

The final paragraph is a reflection of a point the Minister of State made, namely: "examples of regulations, national strategic policies, legal obligations, EU directives and international commitments that might be considered or reflected in the preparation or design of procurement procedure or contracts." It now states that these are examples and they might be considered.

I am delighted to hear that the National Concert Hall is going to be upgraded, but it might be relevant in that context to consider the UN Convention on the Rights of Persons with Disabilities or the legislation from these Houses in respect of Irish Sign Language and ensuring that they are factored into the design at all stages. These are small things, but it is important to have such examples there. Not everyone in every Department knows about everything, but they would have examples that they could consider as to how others have done it. Here it is very specific guidance of how it should it be done, but not a requirement, and then there are also examples of other laws they might want to draw on or other commitments that we might want to consider.

The rest of the section is as it was, but it is now very much moved into a guidance mode rather than a prescription mode. One area where this is going to be very important, because it is a new and developing area, is in respect of green and environmental criteria. I am sure the Minister of State has seen the quite concerning report from earlier this year from the Environmental Protection Agency, which showed that in 2020, from a total reported spend of approximately €322 million on contracts over €25,000, only 17%, worth €53 million, included green criteria. Green criteria were not included in three quarters of procurement contracts in 2020. This is where the connection piece comes in. The Department of Education, for example, only used green criteria in three contracts over €25,000 in 2020. When we think of schools, we think of insulation and the interest among children and school communities in the environment, and we would imagine that procurement for education and schools would factor in green criteria, yet we saw that they did not. Much of that relates to the need to back up the general requirements with the discretionary opt-out and a strong mandate and imperative towards quality that is in the rest of the Bill, with a supportive element of guidance that encourages those whose number one focus might not be the environment. It is not what they are thinking about, but it gives them tools that they can use to factor these things in. The Minister of State raised concerns on that section. I am of the view that my amendment will at least partially, if not fully, address them.

I put on record Sinn Féin's support for this Bill and the excellent work Senator Higgins has done on it. The importance of guidance can be seen in the way that procurement does not work at the moment. I will give the Minister of State a concrete example. It involves a multinational company that operates in one of our hospitals in Galway and that supplies canteen staff. It pays those staff the minimum wage. It paid the minimum wage during the past couple of horrendous years of Covid. Any worker who tried to organise a trade union was not given work the following week. How can procurement be seen to be working correctly when that type of abuse is taking place? Unfortunately, it is all too commonplace. The best way to correct that is by looking at how we do procurement differently. It can be truly transformative. The guidance procedures spoken about by Senator Higgins in terms of the environment and social and human rights should be enough without being overly prescriptive to ensure a better outcome not just for our services and the patients who receive them in hospital but for the workers themselves.

I put Sinn Féin's full support behind this Bill. I recognise and welcome the fact that the Government is allowing it to go through this evening.

I thank the Senators. I agree that the earlier the criteria are introduced, the more likely they are to happen and the more cost-effective they will be. That applies to ecodesign as well. We need to think about it right at the start. It is not the icing on the cake at the end; something that we add on that then does not fit because it has been designed for something else. That applies to a range of areas, in particular in sustainability. It is not an add-on, it must be part of the early design process and we must think of it.

Ministerial guidelines are powerful for two reasons. It is not just that it is what the Minister wants coming down to the public sector, but also that it gives an official step-by-step guide and we know where to start and how to work. We are asking people to change the way they do things, so it is a good thing.

I appreciate the constructive approach Senator Higgins has taken in working on this legislation and in dealing with my office. The Senator and I have spoken to each other, but our staff have also worked together. That has led to a good outcome. I will not oppose the amendment.

Amendment agreed to.
Bill, as amended, received for final consideration.

When is it proposed to take Final Stage?

Question put and agreed to.
Question proposed: "That the Bill do now pass."

I thank the Minister of State and his staff for their very constructive engagement. I look forward to continuing that engagement, from a slight distance, as the Bill progresses through the Dáil.

Question put and agreed to.
Cuireadh an Seanad ar athló ar 8.50 p.m. go dtí 10.00 a.m., Dé Céadaoin, an 14 Nollaig 2022.
The Seanad adjourned at 8.50 p.m. until 10 a.m. on Wednesday, 14 December 2022.
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