Government procurement policy ‘inhibits’ SME bidders

THE Small Firms Association (SFA) has used its annual conference to attack the Government’s procurement policy — saying it inhibits serious competition from SMEs when it comes to public tenders.

Addressing more than 250 delegates at yesterday’s conference in Dublin Castle, association chairman Ian Martin said that the new Government’s focus on saving money is actually working “completely at odds” with its enterprise support and job creation agenda.

“In its pursuit of the cheapest price, the Government is neglecting the fact that this will not deliver either the quality, cost-in-use savings, or service levels it desires; but will result in lost jobs here at home,” Mr Martin said.

He added: “The new rules make it increasingly more difficult for small innovative companies to compete and this means a serious potential loss of business, as the public procurement market is valued at €14bn — or 11.5% of GNP.”

In a nod to Jobs and Enterprise minister, Richard Bruton — who also addressed the conference — Mr Martin said: “If the Government wants to see small businesses survive then you should be placing orders with us.”

As well as what he called “a radical overhaul” of public procurement policy, Mr Martin called on the Government to reform the social welfare system and establish a “security net” for those wishing to set up their own businesses.

“At a time when we should be encouraging more people to take risks and create employment for themselves — through setting up a business or becoming self-employed — it’s vital that they have the same welfare safety net as employees.”

At present, business owners who lose their jobs cannot claim the dole. This should change for owners willing to pay a voluntary additional PRSI payment, he said.

“Business owners, who are willing to pay a voluntary additional PRSI payment, should be allowed to do so in order that we may qualify for all social welfare benefits as our employees do.”

In the December budget, Government must re-balance its policy priorities from balancing the books through its austerity programme, with the need to restore economic growth, Mr Martin added.