Dáil Éireann Debate, Wednesday - 7 November 2012
139. Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government if it is possible for local authorities to include local employment clauses in public contracts before they are put out to tender; and if he will make a statement on the matter. [48983/12]
View answerIssues concerning compliance with procurement legislation and guidance are a matter for my colleague, the Minister for Public Expenditure and Reform. The procurement of products or services by a local authority is a matter for the authority concerned. Notwithstanding this, guidelines by the National Public Procurement Policy Unit (NPPPU) of the Department Public Expenditure and Reform apply to all public sector bodies, including local authorities.
I am advised that t he rules on awarding public contracts have provisions which allow the specification of social criteria, such as the requirement for employment of long term unemployed, as a condition in the performance of the contract. Any such provisions must be compatible with EU law, i.e. they must be made known to all interested parties and must not restrict participation by contractors from other Member States. Subject to this, contracting authorities have the discretion to apply such conditions, as appropriate.
Under the EU Directives on public procurement, public works, supplies and service contracts above certain thresholds must be advertised in the Official Journal of the EU and awarded on the basis of objective and non-restrictive criteria. For contracts below these thresholds, the general requirement is that they be advertised on the national public procurement website www.etenders.gov.ie or, depending on value, awarded on the basis of a competitive process of direct invitation to an adequate number of suitable suppliers.
The aim of the rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money. It would be a breach of the rules for a public body to favour or discriminate against particular candidates on grounds of nationality and where the EU Directives apply there are legal remedies which may be used against any public body infringing these rules.
The local government sector avails of a number of shared procurement mechanisms already in place (nationally – National Procurement Service (NPS) frameworks, LA Quotes/Bitumen, and regionally – library service procurement, public lighting maintenance, debt collection, paid parking, etc.), and local authorities will support and operate under Mandatory Frameworks for procurement as they are developed.
A new procurement governance structure is currently being put in place in the local government sector comprising a lead procurement local authority (Kerry County Council), specialist procurement support units and regional procurement co-ordinators. In addition, each county and city council has a designated Procurement Officer in place.
Government initiatives in relation to procurement are reshaping the way the State and business engages in relation to acquisition of goods and services. Sensitivity regarding Small and Medium Enterprises ( SMEs ) is needed to maximise local buy-in particularly with regard to pre-qualification criteria required in order to meet eligibility thresholds when tendering for public contracts. In this regard, while local authorities provide a measure of support for SMEs in engaging with procurement processes (e.g. the LA Quotes website) they will work with the National Procurement Service as they further develop and disseminate guidance in order to assist SMEs in tendering for public contracts, and assist local authorities doing a similar job locally.
As part of the implementation of the local government sectoral strategy to promote employment and support local enterprise, Supporting Economic Recovery and Jobs – Locally , local authorities will also work as necessary with the responsible State agencies in the development of the Procuring Innovation initiative (Action 3.53 of the Action Plan for Jobs) to increase the purchasing of innovative solutions from SMEs by encouraging a more flexible approach to tendering that focuses on procuring solutions to specific needs, rather than specific products or services. In view of the importance of improving the capacity of SMEs to compete under the framework agreement approach, local authorities will also work with Enterprise Ireland to ensure that pre-qualifying criteria for the award of public contracts that are subject to frameworks will be proportionate to the relative value of the contract, so that pre-qualification is not unnecessarily weighted against SMEs.
While public procurement policy addresses the inclusion of social clauses in public contracts, the application of such clauses in public contracts is a matter for each contracting authority concerned.
