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Time to tackle wayward practices to drive cost savings in public - Hayes
Brian Hayes TD, Minister of State at the Department of Finance with special responsibility for the Office of Public Works (OPW) today launched a Standardised Suite of Procurement Documents.
Speaking at the launch Minister Hayes said:
“Today’s announcement is a significant initiative that helps business and buyers to cut down on costs. Standardised legal documents make it easier to untangle the red tape and get clarity for all concerned.”
The Minister continued
:” I am launching a comprehensive suite of legal documentation for use by public service procurers when going to the market to purchase goods and services. This work was completed in conjunction with many players in the public and private sector. These documents are designed to bring maximum clarity and transparency to the procurement process.”“Business, both big and small, needs certainty. The documents that I am launching today make procurement easier. It’s a step in the right direction. In introducing standardised contracts, all elements of the public sector must follow a procurement path that is consistent and uniform. This is in everyone’s interests. It’s good for suppliers, particularly the SME sector, and it’s good for buyers to have this new contract certainty developed by the National Procurement Service.” The Minister continued:
“For a country that faces a budget deficit of 18bn euro this year we have to move in the direction of central purchasing. I cannot emphasise enough the importance of all officials embracing the opportunities afforded by central purchasing. The National Procurement Service has put in place in excess of 40 contracts and frameworks with a total value of €414 million since 2009. Aggregating public sector contracts delivers significant savings for the Irish taxpayer on all fronts. However, this also raises a very serious issue for me as Minister. I would be aware that, despite the existence of central framework agreements and contracts, there are still some within the public service who do not avail of them. Despite the fact that these arrangements are, proven value for money, legally compliant and have removed all administrative costs, there appears to be those who have taken conscious decisions not to use centralised arrangements. I cannot understand this.If it is the case that these public service bodies are obtaining significantly better value elsewhere; that’s fine. But if they merely wish to retain control over purchasing for their own local interests, well then this is simply unacceptable. At a time when the country is borrowing money internationally at high interest rates in order to maintain our public services the concept that some officials persist in thinking ‘local’ is not something that can continue. The Minister concluded:
“In my role as Minister of State with responsibility for both Procurement and for Public Service Reform I want to clearly say that this situation cannot continue. I have asked my officials to report to me on the number of public bodies who are refusing to purchase centrally. I will be asking my colleagues in Government to ensure that where they have responsibility for such public bodies that they remove any such wayward practices.”