Public Procurement

Dáil Éireann Debate, Thursday - 7 October 2010

Thursday, 7 October 2010

Ceisteanna (94)

Michael Ring

Ceist:

92 Deputy Michael Ring asked the Minister for Finance the reason small contractors, under the evidence of economic and financial standing criteria, Article 54 of Directive 2004/17/EC and Regulation 56 of SI No. 50 of 2007 and Article 47 of Directive 2004/18/EC and Regulation 55 of SI No. 329 of 2007 require a minimum average turnover of €1.5 million to qualify for the award of contracts; the plans to review the minimum average turnover level in view of the present economic climate; that the scheme and directive be urgently reviewed; and if he will make a statement on the matter. [35654/10]

Freagraí scríofa

Minister for Finance (Deputy Brian Lenihan)

There are no requirements for a minimum average turnover, in order to qualify for the award of contracts, in either the EU Directives or Statutory Instruments mentioned. The general rule is that any financial capacity levels required must be relevant and proportionate to the needs of the contract. My Department recently issued new guidelines to public bodies which are aimed at facilitating greater participation by small and medium-sized enterprises (SMEs) in public procurement opportunities. As part of these provisions, public bodies were firmly reminded that the levels they set for suitability criteria (especially in relation to a potential tenderer's turnover) must be both justifiable and proportionate to the needs of the contract and guidance was provided on these matters.