Once vibrant with local enterprise, post offices, and community chatter, many of Ireland’s rural towns now echo with the silence of shuttered shops and empty homes. Termed “ghost towns” by locals and researchers alike, these areas face population decline, economic stagnation, and the slow erosion of social infrastructure. But as Ireland seeks sustainable solutions to regional imbalance, one question emerges: can public procurement be a lever for rural revival?
A Landscape of Decline
In the Gaeltacht, procurement becomes a vector for language planning. The Official Languages (Amendment) Act 2021 mandates that 20% of new public sector recruits be competent in Irish by 2030, reinforcing the institutional role of the language (Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media). However, implementation at the local level depends on how contracts are structured. When tenders specify Irish-speaking service delivery, for healthcare, childcare, tourism, or community development, they create a practical need for Irish fluency and, by extension, for local, language-competent suppliers.
The State’s Purchasing Power
Public procurement accounts for around €20 billion annually in Ireland, nearly 10% of GDP, according to the Office of Government Procurement (OGP). This purchasing power, if strategically directed, could be transformative for rural communities.
The Programme for Government (2020) acknowledged this, calling for procurement reform that considers not only cost, but also community benefit, SME participation, and environmental sustainability. Likewise, Project Ireland 2040 identifies balanced regional development as a national priority.
Local SMEs Locked Out?
Yet in practice, many rural SMEs struggle to access public contracts. Research by ISME (Irish Small and Medium Enterprises Association) and the European Commission suggests that overly complex tendering processes, high insurance thresholds, and a lack of pre-market engagement disproportionately disadvantage micro-enterprises outside of major cities.
The 2022 Procurement Innovation and SMEs report by the OGP acknowledged that only 24% of SMEs outside the Dublin region regularly bid for public tenders. This figure is even lower in counties like Leitrim and Roscommon.
What’s more, many local authorities bundle contracts into large lots, particularly in construction and maintenance, effectively excluding smaller local firms.
Smart Procurement, Smart Growth
The solution may lie in smarter, socially-aware procurement strategies. The European Commission’s 2021 Guidance on Socially Responsible Public Procurement (SRPP) encourages contracting authorities to consider social value in awards. This includes job creation in disadvantaged areas, supporting social enterprises, and promoting equal access for SMEs.
Ireland has begun to explore these approaches. Clare County Council’s use of targeted procurement to stimulate town-centre renewal in Ennistymon and Kilrush is one such example. Contracts were deliberately designed to suit smaller local firms, with evaluation criteria awarding points for local employment and community engagement.
Meanwhile, Údarás na Gaeltachta has used public procurement to support Irish-speaking regions, favouring contractors with Irish language capacity and commitments to local hire.
These models show that procurement can become more than a transaction, it can be a tool for policy delivery.
Barriers to Reform
Despite promising pilots, obstacles remain. Procurement officers often lack the training, time, or legal confidence to incorporate community benefit clauses. A 2023 report by Public Policy Advisors Network highlighted a “deep conservatism” among public buyers, driven by fear of litigation and audit challenges.
Moreover, there is currently no national policy mandating, or even strongly recommending, the inclusion of place-based social criteria in procurement outside of specific sectors like housing or health.
Towards a Rural Procurement Strategy
To reverse ghost town decline, Ireland needs a national rural procurement strategy embedded in the broader rural development framework. This should include:
- Decentralised procurement hubs supporting rural buyers and suppliers
- Mandatory SME-friendly design principles, including smaller lots and flexible requirements
- Training for contracting authorities on how to embed social and economic objectives legally and effectively
- Digital procurement platforms tailored to local business capabilities
- Monitoring and data collection, including rural impact assessments for major contracts
Procurement with Purpose
Public procurement cannot, by itself, undo decades of rural decline. But it can help stitch economic life back into hollowed-out towns. Used with purpose, it can support local businesses, revitalise town centres, and create jobs where they’re needed most.
In a country where nearly one in three people still lives in a rural area, the stakes are too high to ignore. Rural Ireland doesn’t need charity. It needs contracts.
Sources:
The Central Statistics Office (CSO)
Clare County Council Adopted Annual Budget 2025
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