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Dáil
‹ Leaders' Questions

Templemore procurement and SMEs

Summary

Deputy Lowry criticised the procurement framework after Templemore Garda College shifted purchasing from local suppliers to central control, harming many Tipperary businesses. He argued the system favours large firms and undermines rural enterprise, while the Tánaiste said SME support matters and procurement can be structured to allow smaller operators to compete.

Pat the Cope Gallagher An Leas-Cheann Comhairle Fianna Fáil

We will move on to the Rural Independent Group. I call Deputy Lowry who has three minutes.

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I ask this question in the context of the national procurement framework. I refer to how this is impacting on small to medium sized enterprises, SMEs, by using the example of Templemore Garda College. There are 600 people on-site serving 2,000 meals a day. Up to now, purchases were made from local suppliers. There are 31 local suppliers from across Tipperary, in places such as Templemore, Thurles, Roscrea, Nenagh and Newport, that have traditionally supplied the needs of the college. They are mostly small family businesses. They are reputable and reliable and work long hours to give exceptional service with high standards and good quality food. It is quality food on the doorstep of the college. Until now the management of the college always dealt with these matters. It is capable, competent and efficient. For instance, it tendered locally for a butcher and got three suppliers. The management bargained, got the best price and reached agreements, and those agreements were honoured by both sides. Above all, they always came in within the budget available.

The Garda College has been put under the spotlight in a persistent prolonged period of allegations and questions concerning historical events. This has involved several appearances by Garda management before the Committee of Public Accounts, with a subsequent stream of negative publicity. There is no doubt that this exercise has been damaging to the reputation of the college. The current administration of the college has been left answering questions about practices that happened under senior personnel many years ago, most of whom have retired or moved on to different positions. The college has been unfairly undermined and the administration and its capacity to govern deliberately questioned.

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By Deputy Kelly.

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Arising from this episode, changes have been introduced, in particular to the procurement policy of purchasing goods and services. All decisions regarding the purchasing of supply items to the college have been removed from local management. They will now be under the control of the Office of Government Procurement. This is a significant and alarming development for the small businesses in the Templemore area supplying the needs of the college and they have now lost out. Those people were informed last week and of 31 local suppliers, 26 have lost out. They are disillusioned, disheartened and angry. They have lost out and, effectively, have been locked out. Their services have been dismissed in an impersonal and hurtful manner. This business was the core of their businesses and jobs are threatened as a result of this decision, which does not make economic sense. Faceless people in a Dublin office are now going to be making decisions about purchasing for the kitchen in Templemore and controlling the management of the kitchen. It does not make sense and it is very damaging and unfair to the local suppliers.

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Simon Coveney The Tánaiste Fine Gael

I am sure the Deputies are aware that the financial practices and procedures at the Garda College in Templemore were the subject of public controversy last year and were examined in great detail by the Committee of Public Accounts. The Government has no direct role in the management of the finances of the Garda College. The Garda Commissioner is the Accounting Officer for the organisation. The Garda Vote is subject to audit by the Comptroller and Auditor General and the Committee of Public Accounts. They have taken a particularly active approach in examining matters concerning the Garda College.

I am advised the Garda College in Templemore previously had an historic practice, as the Deputy outlined, of purchasing food from local businesses. Following the public controversy last year, I understand the Committee of Public Accounts was particularly concerned the college had directly engaged local suppliers in the community rather than following correct procurement procedures. I am informed that a tendering process in accordance with the public procurement rules is now almost complete. Successful tenderers have been notified and the outcome of the tendering process is subject to a two-week cooling-off period.

I can understand the frustrations of the local businesses concerned. The communications between the Garda College and those suppliers, who may not have been successful through this tendering process, sounds like it could have been much better. However, it is important to note the controversy we have been through in respect of procurement procedures in Templemore and how money was allocated and spent. The Garda needs to lead by example in these things. That is why there is now strict adherence to the procurement rules in respect of how contracts are assigned. I regret that has had a negative consequence for many local businesses. However, given the history of this over the last six to eight months, it is understandable how it has developed the way it has.

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This does not just affect Templemore. The tender documents from the Office of Government Procurement are complex, complicated and impossible for the normal business manager to comprehend or understand. The process is absolutely loaded in favour of the big players in the market.

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The small to medium sized enterprise has no chance under this new system.

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Get rid of it.

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Contracts from the Government and State agencies are gobbled up by the multinational groups. This is not just happening with food and essential items. It is happening across every sector of demand and supply in the public sector. It includes printing, stationery, mechanical, electrical, engineering, medical, marketing and legal services. The powerful are getting all the business. They are getting bigger and bigger and the SMEs are weaker and weaker.

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Government policy is supposed to encourage and increase activity outside the cities and promote regional development and jobs. This procurement framework, which was used for Templemore, does the opposite. It centralises purchases. It makes the rich companies richer and stronger. It is gradually creating an elite number of companies that have dominance and control of the supply chain. The system is anti-small business. So much for the slogan of keeping rural Ireland alive. Across Ireland, we have Leader groups and enterprise boards giving encouragement, support and financial grants to support start-up business.

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Pat the Cope Gallagher An Leas-Cheann Comhairle Fianna Fáil

I thank the Deputy.

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However, when it comes to accessing the lucrative public sector supply chain, they are snuffed out and excluded. Tender qualification criteria need to be reviewed.

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Pat the Cope Gallagher An Leas-Cheann Comhairle Fianna Fáil

The Tánaiste has one minute to respond.

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The rules, criteria, regulations and thresholds governing the competitions make it impossible for a small organisation to be successful in trying to get into the supply chain.

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Simon Coveney The Tánaiste Fine Gael

On the general point of supporting SMEs and creating jobs outside of Dublin-----

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The Government is not.

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Simon Coveney The Tánaiste Fine Gael

-----it is worth noting that the vast majority of jobs created last year were actually created outside Dublin. Every county in the country without exception-----

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The Government is destroying jobs.

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Simon Coveney The Tánaiste Fine Gael

-----has seen job numbers grow. In the last budget, and subsequently, we have seen numerous initiatives to help and support SMEs. I accept that in the procurement process, depending on how the contracting and procurement process is structured, it can be difficult in a competitive environment for SMEs. There are, however, examples of many State agencies and organisations looking to break up tenders to allow SMEs and smaller operators to compete and not exclude them in respect of the qualification criteria. I do not have the details on the qualification criteria for this tendering process but perhaps I can get the Minister to follow up with Deputy Lowry.

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Where is Deputy Kelly today? It was Deputy Kelly who caused all the trouble. He is missing as usual. I apologise.

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Pat the Cope Gallagher An Leas-Cheann Comhairle Fianna Fáil

I thought Deputy Lowry was more than capable of asking his own questions. I did not think he needed any assistance.

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