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Action Plan for Jobs

Dáil Éireann Debate, Tuesday - 25 March 2014

Tuesday, 25 March 2014

Questions (425)

Stephen Donnelly

Question:

425. Deputy Stephen S. Donnelly asked the Minister for Public Expenditure and Reform if the proposed working group on the public procurement opportunities for small and medium-sized enterprises has been established, as per action 241 of the Action Plan for Jobs; if it has not been established, will its establishment be hastened in view of the recent comments by Professor Morgan Kelly on the precarious situation facing these entities over the coming period; and if he will make a statement on the matter. [13177/14]

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Written answers

I can confirm that Action 241 of the Action Plan on Jobs (to establish a working group comprised of SME stakeholders that will examine ways to improve SME access to public procurement opportunities) was completed in January 2014. The group held its first meeting at the end of January. The group will examine procurement policy and its implementation with a view to improving SME access to procurement opportunities.

In relation to the broader issue of creating the right environment for SMEs, I welcome the 2014 Action Plan for Jobs which aims to build on the significant progress which has occurred in job-creation since the first Action Plan was launched in February 2012, with 61,000 extra jobs added to the year-end 2013. According to Live Register figures produced by the Central Statistics Office, the unemployment rate has declined for 19 consecutive months, declining from 15.1% in February 2012 to 12.3% in January 2014.

In order to actively assist job growth, my Department is committed to maximising procurement opportunities. The public sector has an immense purchasing power, spending in the region of €8.5 billion per annum on goods and services in addition to expenditure on public works.  This level of expenditure by the public sector affords significant business opportunities for firms that can supply the products and services that are required by public bodies.

The Government is committed to reforming the public procurement process and has established an Office of Government Procurement (OGP) to drive a new consolidated and integrated approach to public procurement. The OGP is reviewing and updating the public procurement guidelines to reiterate that it is the Government intention that SMEs should be encourage to participate as fully as possible in the public procurement process. We will continue to support Irish companies seeking to participate in procurement contracts overseas; and encourage a wider approach to purchasing innovative solutions to meet public sector needs.

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