Agenda item
Cllr. Cull - M23:25 - Council Tender Processes
I propose that this Council will adopt a rights based Ethical Procurement Policy (EPP), ensuring that every endeavour is made to ensure that Council tender processes are consistent with the principles of the UN guiding principles on Business & Human Rights, OECD, Guidelines for Multinational Enterprises & the Global Sullivan Principles (1999) - to promote respect for human rights by companies with which they do business.
The EPP will establish clear international standards and implementation methods to ensure human rights obligations are acknowledged and respected throughout the procurement process.
Minutes:
23:25 Council Tender Processes
Notice of Motion from Cllr. Cull
I propose that this Council will adopt a rights based Ethical Procurement Policy (EPP), ensuring that every endeavour is made to ensure that Council tender processes are consistent with the principles of the UN guiding principles on Business & Human Rights, OECD, Guidelines for Multinational Enterprises & the Global Sullivan Principles (1999) - to promote respect for human rights by companies with which they do business.
The EPP will establish clear international standards and implementation methods to ensure human rights obligations are acknowledged and respected throughout the procurement process.
The Meetings Administrator read the following reply:
Roscommon County Council has a Procurement policy that is constantly evolving. This policy and underlying procedures are governed by National Procurement Legislation which is grounded in EU Directives (2014/24) – principally the EU Procurement Directive.
The Department of Enterprise and Trade advise that neither Ireland nor the EU currently have restrictive measures above and beyond the current trade sanctions in place. Ireland does not impose any unilateral sanctions regimes but implements UN and EU sanctions. The Council of the European Union adopts EU sanctions through Council decisions, which must be agreed unanimously. Ireland has given undertakings as part of its WTO membership to grant non-discriminatory access to its markets in goods and services and has joined the Government Procurement Agreement (GPA), expanding its commitments regarding market access. The Department has previously indicated that any move by a public authority to act outside of any agreement may be seen to breach our international trade commitments and may be seen as discriminatory in relation to goods and services, otherwise legally saleable within the Union.
Changes to how Roscommon County Council treat economic operators in prohibiting the importation or sale of goods or services originating in occupied territories need to be made nationally by way of an amendment to regulations, similar to the amendment made in April 2022 in relation to a prohibition on the award of public contracts with Russian nationals and entities or bodies established in Russia (EU Regulation 2022/576).
Under the current Irish and EU Procurement regime, suppliers in a country outside of the EU that has signed up to the World Trade Organisation's Government Procurement Agreement (GPA) are eligible to submit tenders for Irish public sector contracts. It would not be appropriate to interfere with contract law in the way proposed by the motion in relation to the exclusion of economic operators of sale of goods or services originating in occupied territories, above and beyond current regulations, as this could potentially leave Roscommon County Council open to a specific performance court action and costs.
However, the motion also calls on this Council to exclude companies involved in human rights and international law violations when tendering bids. The Roscommon County Council Procurement Policy has guiding principles and corporate procurement values. We will seek guidance and advice from the Office of Government Procurement and refer to the OGP’s Information Note Incorporating Social Considerations into Public Procurement with a view to incorporate the discretion this Council has to exclude economic operators for involvement in human rights and international law violations whilst not impacting on contract law or EU Regulations or WTO agreements as outlined above.
Contracting authorities have discretion to exclude economic operators in the circumstances set out in Regulation 57(8) including for: non-compliance with environmental, social and labour law obligations (Regulation 57(8)(a)), bankruptcy (Regulation 57(8)(b)), grave professional misconduct (Regulation 57(8)(c)), distortion of competition (Regulation 57(8)(d)), and past poor performance which led to termination, damages or other comparable sanctions (Regulation 57(8)(g)), child labour and other forms of trafficking in human beings (Regulation 57(8)(f)) etc.
Roscommon County Council will also strictly enforce any future EU or National regulations that may apply to economic operators from countries occupying other territories.
It should also be noted that the EU Directives are to be revised in 2026.
Cllr. Cull stated that the adoption of this motion would enable the Council to establish a process for excluding businesses and companies implicated in human rights abuses or breaches of international law from tendering opportunities. She expressed appreciation for the Council’s comprehensive response and noted that the motion has already been successfully adopted by 15 other Local Authorities.
On the PROPOSAL of Cllr. Cull
SECONDED by Cllr. Ward
It was AGREED to adopt a rights based Ethical Procurement Policy (EPP), ensuring that every endeavour is made to ensure that Council tender processes are consistent with the principles of the UN guiding principles on Business & Human Rights, OECD, Guidelines for Multinational Enterprises & the Global Sullivan Principles (1999) - to promote respect for human rights by companies with which they do business.
