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Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Public procurement and contracts

Summary

Mattie McGrath criticises the State procurement system, saying contracts are being awarded without competition or value for money. The Taoiseach defends the Government’s public finances and says Ministers do not award contracts, but the Deputy rejects that and accuses him of ignoring a scandal over non-competitive contracts, leading to a sharp dispute about false allegations.

The Government's procurement programme was supposed to be a key element of the public service reform agenda. Among other elements, it was supposed to ensure that the awarding of contracts would be transparent, open to competition and represent best value for money for the State and the taxpayer. Through a series of replies to parliamentary questions that I asked of each Department, however, it is now clear that this process is deeply flawed and contracts are being awarded in the complete absence of competition and without any clear sense that value for money is being achieved or that the interests of the taxpayer are being protected. This has happened not on a handful of occasions or even a few dozen occasions; astonishingly, contracts were awarded outside of the formal tender process on several hundred occasions between 2017 to 2019.

The following is only a sample. Advice to the Department of Communications, Climate Action and Environment about the national broadband plan at a cost of €14.6 million was not subject to procurement guidelines. That contract must be in jeopardy. The provision of health insurance at the Department of Foreign Affairs and Trade, at a cost of €1.5 million, was not subject to procurement guidelines either. At the higher end of the scale, contracts with a value of more than €13 million were procured on 74 occasions by the Department of Justice and Equality, all without any competitive process. Perhaps one of the worst offenders in terms of how often the guidelines were breached is the Department of Children and Youth Affairs. In 2018, it was found to have issued 60 non-compliant contracts totalling €5.4 million. In 2017, it reported 69 non-compliant contracts.

The Department of Education and Skills awarded 21 contracts, worth €4.64 million, without a competitive process between 2017 and 2018. The Department of Culture, Heritage and the Gaeltacht awarded nine contracts, worth a total of €1.45 million, outside of the guidelines between 2017 and 2018. An "urgent" requirement for printing at the Department of Employment Affairs and Social Protection that cost €262,000 was outside procurement guidelines. As Ms. Stephen McDermott at the Journal.ie has shown in his analysis, at least 348 contracts awarded by Departments between 2017 and 2019 failed basic compliance with procurement guidelines. That is shocking.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

I thank the Deputy. As he will see from the Exchequer returns being released today, the Government's reputation for competence around the management of the public finances is enhanced. As he will see, this year-----

Comment on this
Leo Varadkar The Taoiseach Fine Gael

Is enhanced. As he will see, this year we will record a budget surplus even greater than was projected on budget day. He will be aware that, only the other day, Standard & Poor's raised our credit rating. Therefore, the facts say otherwise - a surplus being recorded that is bigger than we anticipated on budget day and Standard & Poor's improving our credit rating in recognition of the sound management of the public finances by this Government.

When it comes to procurement laws, as the Deputy will know, there are national procurement laws and there are also EU procurement laws.

Generally, contacts are put out to tender and they go to the best tender, taking into account cost, quality and other issues on which a contract may be scored. On the specific contracts the Deputy has raised, I would have to check into them and come back to him and I shall. There are exceptions to procurement policy and sometimes Departments and Government agencies will have continuous frameworks in place rather than retendering every time, every six months or every year. They can put in place a standing framework, which cuts down on bureaucracy and cost. There is also constant engagement on procurement policy and all Opposition groups, including that of the Deputy, are encouraged to engage in it. There is engagement at present with all Departments on specifics that are being looked for.

Comment on this

The Taoiseach cannot have his cake and eat it. He is taking the praise for the reports he is getting. Many of these reports are being issued by people who are getting contracts without any tender process. I get a real sense that the scandal of having 348 Government contracts awarded outside of competitive guidelines has not been acknowledged or accepted. The Taoiseach does not accept it. If Mary Ann or Willie Joe is applying for a downstairs toilet or a basic level flat shower in the house because they are disabled and want a disability grant they have to get three competitive tenders from three recognised and approved builders. They go through all of the process yet the Taoiseach can dish out contracts to his friends and his people here without any recognition and tell me in reply that all of the people are praising him. They are praising him because many of the same people are being hired by him without proper competitive rules. The game is up. The people see this. There are rules and regulations for the daoine beaga, the little people, who must comply with everything, including small business people, small shop owners and small people who cannot supply their local schools because of procurement rules, but the Government can hire and fire and give out contracts willy-nilly without any recognition of the tax and the scandal of the waste that is going on. Someone needs to pinch the Taoiseach and he should get real if he did not listen to the people that week with the low turnout. They are fairly annoyed and fed up with the Government and its excuses on the children's hospital, national broadband and God knows. It is a gravy train here and the Taoiseach lets it run and roll and stands over it.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

The Deputy knows full well that no Minister or politician is involved in awarding contracts. That is not the way it works.

Comment on this

The heads of Departments-----

Comment on this
Leo Varadkar The Taoiseach Fine Gael

Perhaps it did 20, 30 or 40 years ago but it has not worked like that in a very long time. No Minister is involved in making a decision on who does or who does not get a contract.

Comment on this

Blame the Secretary General, like you did last week.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

The Deputy should know better than to make false allegations such as that in the House.

Comment on this

They are not false allegations.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

Absolutely they are false and the Deputy should withdraw them.

Comment on this

They are not false allegations. They are facts but the Taoiseach does not want to listen to them.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

No, they are not. They are false allegations.

Comment on this