Software producers plan to seek an increased share of the state's yearly €275 million technology spend with a campaign demanding that small industries be guaranteed a 20 per cent share of Government contracts.
Irish Software Association (ISA) chairman, Mr Cathal Friel, said yesterday that most of the organisation's members found it "nearly impossible" to win Government supply contracts.
He told a press conference that the organisation planned to launch a campaign demanding the Government guarantee that small and medium-sized enterprises (SMEs) get a 20 per cent share of all state contracts.
Mr Friel pointed out that in the US, the federal government imposed similar conditions on all contracts. He explained that the scale of state contracts meant that smaller operators could not take them on single-handedly.
However, he said that under the system proposed by the ISA, the larger players who regularly won these deals, would be obliged to take on SMEs as partners. He said the campaign would be aimed at boosting ISA members chances of getting a share of the cash Government spends on technology products and services.
ISA director, Ms Kathryn Raleigh, said EU regulations governing state tendering procedures would prevent the association from demanding that the guarantee apply only to Irish SMEs.
"But Irish companies would be best-placed to take advantage of that, and we plan to run information briefings with Enterprise Ireland for members so they will be well placed to apply for tenders," she said.
A Department of Finance spokeswoman said the state planned to spend €275 million on technology products and services this year. She added that around €125 million of this would include new business that would be put out to tender during the year.
Mr Friel said the ISA is also concerned at reports suggesting that Finance Minister, Mr McCreevy, could end the Business Expansion Scheme (BES) in December's budget. "If the BES is not extended for at least a year or two, that will cut off a source of funding for many companies," he said.
