Dáil Éireann Debate, Thursday - 23 May 2013
11. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform the consideration he has given to the inclusion of a social clause in capital public procurement projects to the value of €1 million euro or more. [24631/13]
Amharc ar fhreagraThe matter of social clauses in public contracts is something that I have been examining closely recently.
Social clauses can be used in public procurement in cases where they are targeted at factoring into the procurement process consideration of social issues such as employment opportunities, equal opportunities and social inclusion. In order to be compatible with EU law, they must be made known to all interested parties and must not restrict participation by contractors from other Member States.
The European Commission issued guidance in 2010 that identified a range of social considerations that could be relevant for procurement including promoting employment opportunities for young unemployed or long-term unemployed and promoting compliance with core labour standards. This guidance stressed that when incorporating social considerations into the procurement process one of the key challenges is ensuring compliance with the EU Treaty Principles and the Procurement Directives. The EU procurement directive primarily envisages that social considerations may be included as contract performance conditions, provided they are not discriminatory and are included in the contract notice or in the contract documents and relate to the performance of the contract. For example, the EU Directive states that contract performance conditions may be intended to favour on-site vocational training, the employment of people experiencing particular difficulty in achieving integration, the fight against unemployment or the protection of the environment.
Challenges arise from the need to ensure that: value for money is not adversely affected; additional costs are not placed on domestic suppliers relative to other potential suppliers; and the targeted benefit is capable of being measured and monitored during execution of the contract.
The Deputy may be aware that proposals for a revised set of EU Directives governing public procurement are being considered at present. The inclusion of social considerations in public procurement procedures, specifically at the contract award stage, is an issue that is being addressed in the reform of the procurement directives. In this regard, the revised directive, when implemented, should provide greater scope and legal clarity in relation to the use of social criteria at contract award stage. Reaching agreement on the public procurement dossiers is a key priority for the Irish Presidency of the European Union.
The Government Contracts Committee for Construction (GCCC) has recently approved a pilot initiative to be included in a series of 3 bundles under the National Development Finance Agency (NDFA) Devolved Schools Build Programme Design and Build Framework, which will require the Contractor to provide for the employment of some members of the workforce employed under a public works contract to be recruited from the ranks of the long-term unemployed, in addition there is a requirement to provide opportunities for apprentices.
