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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Hospital Building Programme.

Irish-Made Hospital Equipment

Summary

Haughey questioned whether Irish manufacturers receive fair opportunities in hospital equipment contracts, citing a local firm that lost a St. James’s contract and laid off staff. Desmond said EC rules forbid preferential treatment, but his Department encourages Irish tenders and investigates concerns after contracts are awarded.

asked the Minister for Health if in his hospital building programme any efforts are made to ensure that, to the greatest extent possible, equipment of Irish manufacture is used, in order to protect employment in native industry.

Comment on this

EC legislation prohibits this country from giving preferential treatment to Irish manufactured goods. Equipment used in the hospital building programme is purchased on the basis of competitive tendering and the policy of my Department is that health agencies should give Irish manufacturers every opportunity to submit tenders. There has been no change in Department policy in this matter during the period of office of this Government.

Comment on this

Is the Minister aware that in the case of St. James's Hospital, for instance, in regard to a contract for the supply of electrical equipment, a small local firm who were competitive in every way were not given the contract, with the result that they had to lay off a number of employees? Is he satisfied that throughout the health services where possible — that is all anybody asks — work is given to Irish firms with a view to preserving employment?

Comment on this

I can assure the Deputy that an important objective of our industrial policy is to ensure that Irish contractors are given every opportunity to secure contracts in competition with other EC countries. We are fully aware in the Department of the importance of the employment implications of those contracts funded under the health capital programme. I do not in any way interfere with tenders or with contracts, nor do I issue special instructions in that regard. To do so would be in total breach of Article 30 of the Treaty of Rome. This is very specific and, as the Deputy knows, it is so rigid and stringent that the Guaranteed Irish Campaign sponsored by the Irish Goods Council was found by the European Court in 1981 to be in breach of Article 30. If there are any specific incidents or contracts about which the Deputy is worried, I will certainly take them up. I would make the broad point that many contracts, for example, go to Northern Ireland. Quite tragically and horrendously one of our principal contractors for Cavan Hospital was buried this morning. He had the electrical contract there and was doing outstanding work. Whether companies come from Northern Ireland, the Republic or elsewhere we must have an even-handed approach.

Comment on this

Of course I accept that the Minister does not interfere in individual contracts, but in the case of the supply of electrical equipment to St. James's Hospital I would expect that, if something were brought to his attention, he would have it investigated with a view to ensuring that the Irish firm were given every possible chance. Is he aware that in this area of supplying equipment, which can be infinitely varied and often very sophisticated, there are many tricks and practices which can be availed of by outside foreign suppliers to the disadvantage of local manufacturers? Would he agree that it is not enough for architects, engineers and purchasing officers generally to be passive in this regard and that they should be alert to ensure that Irish manufacturers are given a reasonable break on all occasions? There are such things as dumping and special discounts and many practices can be engaged in to overcome the total objectivity which we would all like to see in the awarding of contracts. Is the Minister satisfied that this alertness is practised throughout the system? Does he agree with me that it is very disheartening, particularly for small local firms, to lose contracts under conditions of unfair competition from large multinationals and others?

Comment on this

I would accept the spirit and the broad thrust of the view of the Leader of the Opposition on this matter. I can assure him that, where individual Irish manufacturers have come to me or to senior officers of the Department in relation to tendering for local contracts, they have been given every possible co-operation and assistance. Many of them have been quite small firms. In quite a number of cases I have had investigations made on the outcome of the contracts after the tenders were opened and after the matter was settled. Up to that stage we have to act in a very circumspect manner and we cannot issue written directives to any health agency because these could be picked up immediately by foreign contractors. I assure the Deputy that we are very sensitive to this area. Any information from Deputies or any individual representations will be willingly received.

Comment on this