More Welsh companies are winning major public sector contracts in Wales thanks to action being taken by the Welsh Government to simplify the procurement process, Finance Minister Jane Hutt has announced.
Every year, the Welsh public sector spends around £4.3billion procuring goods and services.
The Wales Procurement Policy Statement, launched in December 2012, aims to ensure that every pound spent delivers efficiencies as well as economic, social and environmental benefits – such as local jobs, training opportunities and supply chain opportunities for local firms. Procurement is a prominent part of the Welsh Government Programme for Government commitments and a key feature of the Tackling Poverty Action Plan.
Presenting a progress report to Assembly Members, the Minister revealed that:
- Welsh contractors now win 75% of all major construction awards through sell2wales – compared to around 30% in 2010-11.
- Of the first completed 27 projects incorporating community benefits, worth an overall value of £346m, 84% of this expenditure has been re-invested in Wales with 517 disadvantaged people receiving 13,020 weeks of training.
- All-Wales collaborative procurement has delivered over £130m of efficiencies over the last 5 years.
The Minister also revealed that the UK Government has recognised the Welsh Government’s procurement policy is ahead of the legislative measures that were proposed through the Lord Young Review in October 2013 to improve SME access to procurement. Consequently, the new legislation, which would have been a backward step for Wales, will not now apply to Wales.
Jane Hutt said:
“We are making real progress in driving forward public procurement policy as a strategic tool to support growth and jobs in Wales.
“I am committed to ensuring that public sector contracts are open and accessible for all suppliers. I’m delighted to see that our innovative policies, designed in consultation with businesses and public sector stakeholders, have opened the doors for smaller, local suppliers.
“I have seen at first hand some excellent examples of where public bodies across Wales have embraced our progressive community benefits policy, which is integral to the Tackling Poverty Action Plan. This is making a positive difference for the people and communities of Wales.
“In January I visited the Arbed 2 project delivered by Melin Homes in South Wales. By using our Community Benefits approach, 100% of the £14.3m project expenditure has been re-invested in Wales – with many small and medium size businesses benefiting. In addition, 45 disadvantaged people have gained employment and 431 weeks of training has been delivered.”
Jane Hutt added:
“The new EU Procurement Directives are due to be transposed towards the end of this year and I am determined to maximise the opportunities they will offer to strengthen the application of Welsh procurement policy.”
“Through collective effort, clear goals and strong leadership, procurement is being transformed from a ‘function’ to a strategic, intelligent lever which can have a positive and lasting impact on jobs, economic growth and the lives of people across Wales.”
