Centralised purchasing expected to save €50m

PUBLIC PROCUREMENT: A DRIVE to change the way goods and services are purchased on behalf of public bodies will result in savings…

PUBLIC PROCUREMENT:A DRIVE to change the way goods and services are purchased on behalf of public bodies will result in savings of €50 million next year, according to the Government.

The initiative will be headed by the Minister of State at the Office of Public Works (OPW), Martin Mansergh, who will have responsibility for setting up the joint public procurement operation between the OPW and the Department of Finance.

He will be asked to produce a business plan that will essentially centralise the purchasing of many goods and services into one procurement unit.

Minister for Finance Brian Lenihan said Dr Mansergh would report to him in the autumn with specific proposals to target at least €50 million in savings in 2009 on this front. The exercise would involve a full review of procurement practices across all departments, agencies and public bodies.

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It would involve everything from Government contracts to stationery to the purchase of high-end medical devices.

Harry McGee

Harry McGee

Harry McGee is a Political Correspondent with The Irish Times