The policy on Public Procurement launched by Renua this week has been warmly welcomed by Independent MEP Marian Harkin.

She said:- “Many small Irish companies have, in my experience, been prevented from bidding for public contracts due to unnecessarily restrictive conditions which are imposed by various government departments.  These conditions are not required by EU law and are an almost insurmountable barrier to many small businesses who want to tender for some of the €13bn in government contracts each year.

“I have ample evidence of contracts which affect a range of goods ranging from the cost of school supplies to providers of local engineering services which have been designed in such a way as to make it almost impossible for small suppliers to tender.  For instance, a major obstacle for small service providers has been an unrealistic focus on company turnover and on excessive insurance requirements.

“In many cases government policy on public procurement runs counter to its policy for regional development with half of all contracts won going to companies in Dublin.  Ireland is at the top of a list of countries most likely to award contracts to foreign companies with €3.5bn out of €12bn being awarded to foreign companies in 2013.  This situation must be addressed as a matter of urgency in the context of the development of a new public procurement policy by the government”, Independent Marian Harkin MEP concluded.