Market for tendering highlighted by Isme

SOME 15.5 per cent of all public procurement contracts in 2008 went to overseas companies, the director of the National Procurement Service said yesterday.

Speaking at the annual conference of the Irish Small and Medium Enterprises Association (Isme), Vincent Campbell said no updated figures were available, but he stressed that EU rules meant that public sector contracts had to be open to all member states.

“There are huge opportunities for Irish companies, particularly in the EU, with an increasing number of Irish suppliers pursuing public sector opportunities abroad,” he said.

The National Procurement Service operates e-tenders.ie, which advertises tenders for government and public service contracts.

Among the speakers at yesterday’s conference were Michael Carey, chairman of Jacob Fruitfield, and entrepreneur Brody Sweeney. Mr Carey, who highlighted the business opportunities presented by the food sector, criticised what he called the media’s tendency to “overstate” the role of Government in shaping the economy, and underestimating the power of individual businesses.

Earlier, Isme chairman John Ryan criticised the lending policy of the Irish banks, which he accused of displaying a “regressive and dated attitude”.

“It is illogical that, in Ireland, we have a banking sector that has been bailed out by the taxpayer but continues to fail to acknowledge and do business with the small business sector – one of the largest groups of taxpayers in the country.”

He also called for the establishment of a national representative forum, which would include SME representatives. “The remit of this new forum would be to assist, advise and independently evaluate all Government economic programmes and policies to ensure compatibility with the needs of the economy as a whole.”

Addressing the conference, Minister of State for Small Business John Perry outlined the measures taken by the Government to create a supportive business environment, including the cross-Government programme to reduce red tape. To date, 90 per cent of the €208 million in cuts that have been targeted have been achieved, he said.

Isme members also heard from Prof Brian Lucey and Paul Somerville who warned that the break-up of the euro was a real possibility.

“There is an existential crisis in relation to the currency in which we all do business for the most part” said Brian Lucey. “As small businesses, you need to start planning for that.”

Arguing that a contingency plan is needed for a “post-euro” world, he said that “planning for a contingency is not the same as wishing for it”.