The EU has a problem when it comes to public procurement.
The good news is that it is tackling it.
Every year, governments across the European Union, spend around €2.5 Trillion on public procurement , around 14-16% of the combined GDP of the EU’s 27 Member States, through more than a 250,000 public bodies.
The system can count the money going out, but it cannot reliably link that spending back to the contract that authorised it, or forward to what the public got in return.
New EU rules are set to change this.
These new rules, which fall under the EU Public Procurement Act, were presented to the European Parliament’s Internal Market and Consumer Protection (IMCO) Committee on Monday and are welcomed by Ireland South MEP Cynthia Ní Mhurchú.
The updated rules put a greater focus on quality, value and transparency – something which Ní Mhurchú has repeatedly called for.
For people using public services, this could mean better value for money when the State buys things like hospital equipment, medicines, school services, public transport and technology.
Ní Mhurchú has been working to tackle issues surrounding public procurement in collaboration with Fianna Fáil TD Albert Dolan for months and is delighted to see progress being made not just in Ireland, but in Europe too.
A cheaper product is not always the best choice. The new rules would allow public bodies to consider whether something is reliable, safe, innovative and cheaper to run over its lifetime.
In addition to this, Ní Mhurchú comments that “The proposals would also make it easier to see where public money is going, with greater transparency around large procurement frameworks and stronger rules on changes to contracts after they are awarded.”
Easier for Irish businesses
The reforms could also make it easier for small Irish businesses to win public contracts.
Companies should face less paperwork, with a “once-only” approach reducing the need to repeatedly submit the same information.
Public bodies would also be encouraged to break large contracts into smaller lots, giving SMEs more opportunities to compete.
Why it matters for Ireland
As Renew Europe’s lead negotiator for the European Parliament’s review of the EU’s medical devices rules, the Ireland South MEP notes the importance that these new rules could have for healthcare, medicines and medical technology.
When the State buys medicines or medical equipment, the cheapest option is not necessarily the best value. The new rules would allow greater consideration of reliability and security of supply, helping to strengthen essential services.
The proposals are still going through the EU legislative process and may change before becoming law.
Ní Mhurchú welcomes this step in the right direction and hopes to see the impact of these new rules over time.
