Dáil Éireann Debate, Tuesday - 1 July 2025
283. Deputy Aengus Ó Snodaigh asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation if there is a clause in public contracts to ensure the contractors winning public contracts must pay the industrial going rate to its employees for the services they deliver; and if he will make a statement on the matter. [35263/25]
View answer284. Deputy Aengus Ó Snodaigh asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation whether the concept of the living wage has been adopted for public tenders for services, whereby the winner of the award must ensure minimum pay being set for its employees of the living wage to win the contract; and if he will make a statement on the matter. [35264/25]
View answerI propose to take Questions Nos. 283 and 284 together.
Public Procurement is governed by EU and National rules. The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.
Specifically, EU rules require tenderers to be compliant with relevant employment law in order to participate in a public procurement process. The Directives make it clear that non-compliance with the relevant obligations may lead to exclusion of a tenderer from the procedure for the awarding of a public contract. The obligations on suppliers in relation to compliance with employment law are reflected in the suite of tender documentation for goods and services developed by my department in conjunction with the Office of the Chief State Solicitor and also in the Capital Works Management Framework.
In relation to the inclusion of the living wage in public contracts, there is no legal basis in Irish law or national agreements to make this a requirement on suppliers who wish to engage in public tendering. In addition, at EU level, any attempt to set wage rates through public procurement is also likely be viewed as discriminatory and in breach of the EU Treaty principles and the EU Procurement Directives. Wage rates which have a legal underpinning, of course, apply to all contracts, public and private.
