State to seek €1.5bn savings from suppliers

THE Government could be in line to make savings of €1.5 billion after announcing plans to renegotiate the fees private contractors and suppliers charge the state.

The move could mean trouble for firms who rely on Government for their greatest source of income, with one official admitting there might be some “collateral damage” involved.

Discussions will begin next month with close to 500 private companies who provide €15bn a year worth of goods and services throughout the public sector, from government departments to the HSE and the Garda Síochána, for everything from school equipment to Garda cars.