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Procurement policies could hurt SMEs

NEW government buying policies on procurement could eliminate small firms from the tendering process, resulting in business closures and job losses, business chiefs have claimed.

The chairman of the Small Firms Association, AJ Noonan, claimed that small firms could be effectively prohibited from tendering for public contracts as a result of a move to centralise government procurement into large-scale contracts.

Mr Noonan said centralising large aggregated contracts would make it increasingly more difficult for small and innovative companies to compete.

"Government policy on the need to save money in public procurement, whilst valid, should be clearly aligned to its enterprise support and job-creation agenda," Mr Noonan said.

Irish Independent