Procurement's Fairness Test Arrives From Two Directions at Once

Purchasing power shapes outcomes long before a contract is signed, whether the buyer is a government department or a national retailer. This week brings two developments that test whether Ireland's procurement system, public and private, is using that power responsibly. On Thursday, Ibec will host a public procurement seminar in partnership with the Rehab Group, where Frank Feighan, junior minister for public procurement, is set to discuss the Government's forthcoming National Procurement Strategy and its potential to expand the role of social enterprises and community organisations in public contracts. A day earlier, the Agri-Food Regulator will present the findings of its second annual supplier survey, examining how food and drink suppliers experience trading with Aldi, Dunnes Stores, Lidl, Tesco, Musgrave, BWG Foods, Marks & Spencer Ireland, and Sysco Ireland. Different markets, same underlying question: does purchasing power produce fairness, or does it require active correction to do so.

The Agri-Food Regulator's inaugural supplier survey published in May 2025 set a baseline that this year's findings will be measured against. Despite high overall supplier satisfaction and strong compliance with the Unfair Trading Regulations, 14% of the 256 suppliers surveyed reported experiencing some form of unfair trading practice in 2024, with delayed payments and forced compensation for product loss among the most common issues. Survey CEO Niamh Lenehan noted that fewer than half of respondents were aware the regulator operates a confidential complaints process, with fear of retaliation cited as a barrier to reporting breaches. That gap between regulation on paper and supplier confidence in practice is precisely what Thursday's second survey will test, particularly as new statutory powers for the regulator are due to come into effect at the end of 2026.

The public procurement seminar addresses a parallel fairness gap, this one in how government contracts are awarded. Minister Feighan has consistently framed his procurement brief around supporting SME participation and delivering social value alongside efficiency and digitalisation. The Ibec and Rehab Group event will test whether that framing translates into binding mechanisms, specifically reserved contracts, weighted social value criteria, or simplified tendering, that genuinely open public contracts to social enterprises rather than leaving participation aspirational.

Three steps would convert both initiatives into measurable progress. First, the National Procurement Strategy should set a specific, published target for the share of public contracts awarded to social enterprises, rather than a general commitment to increase participation. Second, the Agri-Food Regulator should use its expanded powers to mandate buyer-side reporting on payment timelines, closing the awareness gap suppliers cited as a reason for not reporting breaches. Third, both reform efforts should share learnings on confidential reporting mechanisms, since supplier reluctance to flag unfair treatment is a common thread across public and private procurement alike.

Fairness in procurement is rarely won through legislation alone. It is won through suppliers and contractors trusting that raising a concern will not cost them the relationship. Both of this week's developments will be judged on whether they close that trust gap or merely restate it.

(The views expressed by the writer are his/her own and do not necessarily reflect the views or positions of BusinessRiver.)