Mattie McGrath: Reveals 348 Non-Tendered Government Contracts

Teachta, the Government's procurement programme was supposed to be a key element of the Public Service Reform Agenda. Among other things, it was supposed to ensure that the awarding of contracts would be transparent, open to competition and represent best value for money for the state and the taxpayer. However, through a series of replies to parliamentary questions that I placed to each Government Department, Teachta, it is now clear that this process is deeply flawed and that contracts are being awarded in the Commission. complete absence of competition, without any clear sense that value for money is being achieved or that the interests of the taxpayer are being protected. This has happened not on a handful of occasions, Teachta, not even on a few dozens of occasions, Teachta. Astonishingly, contracts were awarded outside of the formal tender process on several hundred occasions between 2017 and 2019. And the following is only an example, advice to the Department of Communications about the National Broadband Plan, wait for it, at a cost of 14.6 million was not subject to procurement guidelines. That contract must be very much in jeopardy. Neither was the provision of health insurance at the Department of Foreign Affairs trade at a cost of 1.5 million euro. At the higher end of the scale, contracts with a value of more than 13 million were procured on 74 occasions by the Department of Justice and Equality, all without any competitive process. Perhaps one of the worst offenders in terms of how often guidelines were breached is the Department of Children and Youth Affairs. In 2018, that Department was found to have issued 50 non-compliant contracts, totaling 5.4 million to issue. In 2017, it reported 69 non-compliant contracts, the same Department of Children. Then there's the Department of Education and Skills, that awarded 21 contracts, worth 4.64 million, without a competitive process between 17 and 18. In 2017, the Department of Cultural Heritage and the Gailtucht awarded 9 contracts, worth a total of 1.45 million, outside of the guidelines between 2017 and 2018. And an urgent requirement for the printing at the Department of Employment Affairs cost 262,000, all outside government procurement guidelines. In fact, as Stephen McDermott at the Journal.ie has now shown in his analysis, at least 348 contracts were awarded by government departments between 2017 and 2019. Contracts that failed the basic compliance with government procurement guidelines. It's shocking. Teacher, when ordinary people hear these amounts and the breaches of guidelines that they present, they become furious. It's any wonder we had such a low turnout last week. They see their hard-earned, tax-paid money being thrown around like confetti at a wedding, a wedding Taoiseach, and resent that very deeply. And why wouldn't they? And why shouldn't they? Will you not accept that these replies make a mockery of your government's apparent commitment to ensuring that the value of a taxpayer is achieved, Taoiseach? Will you accept, also Taoiseach, that they also leave your government's so-called reputation for responsible financial management in ruins, after the ruins? Will you also commit to a total review of your government's procurement guidelines, in order to ensure that the interests of hard-working taxpayers are protected from frivolous and uncompetitive awards of state contracts? He should to respond. Thanks, Deputy. I think, as you'll see from the Exchequer returns being released today, that the government's reputation for competence around the amount of the public finances is enhanced, as you'll see that this year is enhanced. As you'll see that this year we will record a budget surplus even greater than was projected on Budget Day, and you'll be aware that only the other day Standard & Poor's raised our credit rating. So, the facts say otherwise. A surplus being recorded bigger than we anticipated on Budget Day, and Standard & Poor's improving our credit rating in recognition of the sound management of the public finances by this government. When it comes to procurement laws, as the Deputy will know, there are national procurement laws, and there are also EU procurement laws, and generally contracts are put out to tender, and it goes to the best tender, taking into account cost, quality, and other issues on which a contract may be scored. On the specific contracts that the Deputy raises, I'd have to check into them and come back to them on them, and I shall. There are exceptions to procurement policy, and sometimes departments and government agencies will have continuous frameworks in place, rather than re-tendering every time, every six months, every year, they can have a standing framework in place, and that cuts down on bureaucracy and on cost. There is also a constant engagement in the area of procurement policy, and all opposition groups, including the deputies, are encouraged to engage in that. And also, there is engagement at the moment with all departments in government around specifics that are being looked for. One minute. You can't have your cake and eat it. You're taking the praise for what these reports you're getting. Many of these reports have been issued by people who are getting contracts without any tender process. Look, Tishow, I get a real sense that the scandal of having 348 government contracts awarded outside the competitive guidance has been acknowledged or accepted, Tishow. You don't accept it. I mean, if I have Mary Ann or Willie Jo that are applying for a downstairs toilet, a basic level of flat shower in their house because they're disabled and they want to get a disability grant. They have to get three competitive tenders from three recognised approved builders, and they go through all the process. Yet you can dish out contracts to your friends and your people here without any recognition and come back here and tell me and reply that all the people are praising you. They're praising you because many of the same people have been hired by you without proper competitive rules. The game is up, Tishow. The people see this. There's rules and regulations for the little people. Yes, they must comply with everything. Small business people, small shop owners, small people who can't supply to local schools now because of procurement rules. And you can hire and fire and give out contracts willy-nilly without any recognition of what the tax and what the scandal of the waste is going on. Tishow, someone needs to pinch you and get real. If you didn't listen to the people last week about the low turnout, they are fairly annoyed with you and fairly fed up with you and your excuses. Children's Hospital, National Broadband, God knows. It's a gravy train here and you let them run and roll and stand over it. Tisha to respond. Look, Deputy, you know full well that no minister and no politician is involved in awarding contracts. That's not the way it worked. Perhaps it did 20 or 30 or 40 years ago, but it hasn't worked like that in a very long time. No minister is involved in making a decision on who does or who does not get a contract. And you should know better than to make false allegations like that in this House. Absolutely, they are false. You should withdraw them. No, no, they're not. They're false allegations. There's no third opportunity. I call... Brian Nelson. Please. I call,