Dáil Éireann Debate, Tuesday - 21 July 2020
220. Deputy Matt Shanahan asked the Minister for Public Expenditure and Reform his views as to whether the procurement process is fit for purpose for the battle against Covid-19, Brexit and other international economic challenges. [17333/20]
Amharc ar fhreagraWe are faced with unprecedented economic, social and environmental challenges. However, we are fortunate not to have to face these issues alone. The recent pandemic has brought out the best aspects of international cooperation, particularly in relation to health and rebuilding for the future of Europe. In addition, the Programme for Government is focussed on rebuilding the economy in a fair and sustainable manner.
EU public procurement rules were developed and agreed by all Member States within the European Union. Similarly, national rules governing public procurement must comply with 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. These rules aim to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money. These rules underpinning procurement have not changed due to Brexit or Covid-19, as the Procurement Directives provide for a range of options for procuring goods and services during a crisis and international procurement.
My Department has responsibility for developing and setting out the overarching policy framework for public procurement in Ireland and the Office of Government Procurement developed a comprehensive policy framework incorporating guidance and training. The purpose of this is to enable procurers to carry out procurement processes in a consistent manner. Suppliers benefit from this unified approach as it enables them to prepare for all procurement opportunities in a similar fashion. It also improves the probity around purchasing which protects the State by ensuring that it pays the appropriate amount for works, goods and services in a fair and open manner. I am satisfied that the rules governing public procurement do not inhibit the State in tackling the issues you have raised.
In relation to Covid-19, the OGP is supporting the national response through the governance structure established by Government ensuring a public health-led, whole-of-government approach, including the Special Cabinet Committee and Senior Officials Group. The OGP works closely with the HSE and the wider Government sector to assist them in identifying the most pressing needs including Personal Protective Equipment and other essential services in a challenging global market.
The OGP Information Note on Covid-19 (Coronavirus) and Public Procurement provides information on procurement options available to contracting authorities in cases of unforeseeable events. It identifies relevant legislation and payment procedures and gives advice on commencing new procurement procedures and managing current contracts. Guidance to contracting authorities managing public works projects was also published providing greater certainty in the context of the closure of many construction sites and managing the implications of the Return to Work Safely Protocol.
The OGP Information Note on Brexit and Public Procurement identifies potential risks faced by public bodies including disruption to supply, increased costs, extra administrative burdens and regulatory change. The OGP wrote to all Government Departments advising them to identify and manage potential risks to supply and to put in place the necessary contingency plans. Such contingencies may include, inter alia, bulk buying and holding stock, and sourcing substitutions and alternative suppliers.
The OGP has assessed its framework agreements and engaged with key suppliers in anticipation of Brexit. The key risks identified are potential increased costs, interruption to supply and a changed regulatory environment. Many of the issues that may emerge in procurement are likely to relate to trade issues such as tariffs, logistics, customs, and regulatory divergence. The procurement rules have been developed in tandem with the WTO rules on procurement and are therefore flexible in a global context.
