Small Businesses 'Should Bid For Public Contracts'

The Minister for Enterprise has called on small businesses to tender for more public sector contracts, despite the sector experiencing difficulties with late payment from Government agencies.

Batt O’Keeffe TD asked public sector organisations to build stronger relationships with the Government’s job creation agency, Enterprise Ireland, to improve their procurement practices and get a better grasp of the indigenous enterprise landscape.

However, in contrast to Mr O'Keffee's calls, the Institute for Small and Medium Sized Industries (ISME) said a new survey showed enterprises are continuing to suffer because of deliberately delayed payments from both state agencies and larger businesses.

ISME, Chief Executive, Mark Fielding said the evidence suggests that small companies were being forced, particularly by accountancy led big businesses, to accept credit terms outside those outlined in law.

"The law does the exact opposite to what was intended, in allowing powerful large customers to abuse their dominant position and dictate unreasonable credit terms to their smaller suppliers.

"Despite persistent warnings from the Association, the current government refuses to tackle this issue as smaller businesses go to the wall and jobs are lost because of totally inadequate legislation and a minister asleep on duty.”

The ISME survey found that 43% is small businesses were experiencing delays of three months or more for payment and that both big business and state agencies continued to delay payments by up to 72 days on average.

Despite the difficulties, Minister O'Keeffe said it was vital that small Irish businesses were fully aware of public sector procurement opportunities, and put in more bids.

He said that Enterprise Ireland was now working closely with targeted public contracting authorities nationally and at local government level and that the agency had already connected over 70 of its client firms with public bodies developing a number of programmes that will improve service delivery.

Minister O’Keeffe said: "Public sector organisations should be aware of the economic impact their procurement spend can have on small Irish businesses and, in particular, the implications for job creation in local communities.

"Irish firms themselves should be given every help to fully engage with the public procurement process so that they can pitch successfully for business opportunities."

The chief executive of Enterprise Ireland, Frank Ryan, said many of the agency’s client companies have innovative solutions that can bring value and efficiencies to public sector bodies.

"We are delighted to work with contracting authorities that are taking positive actions in engaging with Irish small and medium-sized enterprises for increased tender participation."

(DW)