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Government should support local businesses for public contracts – Tóibín

6 November, 2012

The Oireachtas Jobs Committee will today discuss a proposal from the EU Commission to restrict the ability of countries outside of the EU to benefit from government procurement contracts where no reciprocal arrangement exists or in cases where there is concern with regard to under-pricing.

Sinn Féin Jobs spokesperson Peadar Tóibín has said the government must support local indigenous businesses to compete for government contracts.

Peadar Tóibín, Sinn Féin spokesperson on Jobs, Enterprise and Innovation said;

“EU wide public procurement exceeds €2 trillion per year and non EU countries bid for €352 billion worth of contracts.

“The government is opposing modest restrictions on non EU countries from benefiting from European public procurement.

“In excess of €14 billion of public contracts is awarded by this state. The government’s approach to public procurement is costing jobs and failing business. We are very concerned that local business is losing out and public money pouring out of the state.

“A recent report by the EU found that Ireland had the second highest levels of contracts being awarded outside of the state. This is ten times the rate of both Germany and France.

“The government needs to go further and support local business to be able to compete and access government contracts. Value for money with regard to government contracts is not about the cheapest option it is about quality and ensuring that government spends the public money in ways to benefits our people and the economy and creates employment.

“We will be calling for the government to reconsider its approach and ensure that taxpayers’ money is spent wisely to support jobs and local businesses.”


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