Dáil Éireann Debate, Tuesday - 31 January 2017
367. Deputy Mattie McGrath asked the Minister for Public Expenditure and Reform if he will address concerns within the construction sector in relation to the procurement of public contracts due to unfair competition from non-resident contractors; and if he will make a statement on the matter. [4444/17]
View answerPublic procurement is the acquisition, whether under formal contract or not, of works, supplies and services by public bodies. National rules governing public procurement must comply with the relevant EU, WTO and national legal requirements and obligations. Under EU law, public contracts above a certain value must be advertised EU-wide and awarded to the most competitive tender in an open and objective process. The aim of European and national 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 location or nationality and there are legal remedies which may be used against any public body infringing these rules.
Public procurement procedures require applicants to meet certain standards when applying for public contracts. In this regard applicants are required to make declarations in relation to their financial standing, their legal standing and in relation to payment of taxes and social contributions.
Prior to the award of a public works contract, the successful applicant is also required to produce a current Tax Clearance Certificate from the Revenue Commissioners. Under our national rules, any non-resident contractor being awarded a public contract must provide a Tax Clearance Certificate issued by Revenue confirming that the firm's tax affairs are in order and that it has complied with its tax obligations in this jurisdiction. Additional information in relation to tax requirements for non-resident contractors can be obtained at www.revenue.ie.
The management of the tendering process for a public contract is a matter for each contracting authority. It is the responsibility of each contracting authority to ensure that tenderers comply with all the requirements of the process.
Once awarded, the conditions of the public works contracts require the contractor to certify compliance with employment law, to maintain records of all those employed on the site, regardless of whether they are employees of the contractor or their subcontractors, and the hours worked by them. Where requested, the contractor must also provide details of the payments made to those employed on the site.
Where the contractor fails to comply with their obligations under the contract or employment law, deductions may be made from payments due under the contract until the situation is rectified.
Enforcement of tax, social welfare and employment law are matters for the relevant State authorities.
