The State’s procurement and tendering process was squeezing the lifeblood out of small operators, Labour Senator Marie Moloney said.

She told the Seanad small businesses could not compete with the big operators who bought their supplies in bulk, reduced their costs and tendered lower.

“This is an area where we are killing jobs in the regions,’’ Ms Moloney said.

She said she knew a small operator who had to make 10 of his 25 staff redundant after losing a contract to clean a Government building. She said tendering should take place within the regions to retain local jobs.

Ms Moloney said she understood savings had to be made and she was not naive. “However, we should not squeeze the life out of the small operators in our local areas.”

Minister of State for Finance Simon Harris said a new structure was being put in place in the Office of Government Procurement, for which he had responsibility.

“While 2014 was the year of the establishment of the office, 2015 and 2016 will be about ensuring that we have the structures right and that we put as many measures as possible in place to help SMEs,’’ Mr Harris added.

He said they had to be transparent and equitable in the treatment of all suppliers.