GRTU says public contracts should be accessible

GRTU, the Malta Chamber of SMEs, expressed its strong objections to the new Public Procurement regulations introduced by the government.

The chamber's director general Vince Farrugia said its objections were based on two fundamental issues. Firstly, the chamber said that public procurement of goods and services "should aim at the procurement of most optimal quality of goods and services at the best available, competitive prices."

However, the chamber said the National Public Procurement Agency should not be a "Czar for Social Justice Enforcement, whether this refers to employment conditions, environmental issues, health and safety and any other enforcement whatsoever."

Farrugia pointed out that there are other appropriately established public institutions directly responsible for the enforcement of laws enforcing labour, health, safety, environment, standard, and any other conditions.

"The National Public Procurement Agency should not be subjected to the inspectorate of other public sector institutions because of any clauses imposed on Public Procurement documents."

He added that the Director of Employment Relations had enough authority and resources to ensure that all employers, and not just government contractors, abide by Malta's high quality labour protection laws.

"There is nothing that precludes the Director for Labour to act against any employer who has been found to be in abuse of labour laws. But the Director for Labour should not expect the National Public Procurement Agency to do his work for him."

The chamber's director general said the director for labour and his labour inspectorate should never be given power over the execution of contracts worth millions.

Farrugia added that "when the National Public Procurement Agency 'subcontracts' its own enforcement powers to other institutions it allows public procurement to become wide open for abuse, corruption and incompetence."

Public Procurement should be accessible to all who can compete, GRTU stressed, adding that public procurement should follow the efficiency of the private sector.

"There are firms who are competent administratively and financially to bid for public contracts. These are specialist contractors who are not necessarily big. There are other firms, however, who prefer to specialise in supply of services and to operate as sub-contractors to the former. It is fallacious for anyone to state that contractors are more efficient and that they can provide a more cost effective higher quality service if all specialists and workers are directly employed by the Tendering Contractors."

On the contrary there is ample evidence to prove that most suppliers of specialised services, offer higher quality at a lower cost and attract and incentivise better quality service providers than contractors with directly employed individuals, he said.

"It is inconceivable that a national public procurement agency is denied the services of miscellaneous specialists who prefer to work as sub- contractors."

In addition the chamber said that "Malta cannot and should not have Public Procurement that denies sub-contractors. It is bad for Public Procurement. It is inefficient and opens wide the opportunity for abuse. It loads the National Public Procurement Agency with unnecessary bureaucracy. But most of all it is bad for small businesses. It represents the greatest blow suffered by small business ever."