WIREDGOV

Wales is leading the way in getting maximum social, economic and environmental value from every pound spent in public procurement, Finance Minister Jane Hutt said yesterday.

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.

Speaking to an international audience of procurement professionals and suppliers in Cardiff during an event to mark Procurement Week, the Minister said new European rules on Procurement support this approach – and called on other governments to follow Wales’ lead.

The Minister also said that the UK Government has recognised that Wales’ 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:

"Through using procurement as a strategic tool we are opening the doors for smaller, local suppliers, delivering efficiencies and optimising the value of the £4.3 billion we spend annually on external goods and services.

"We can be proud of progressive policies such as Community Benefits, where the approach has now been applied to 80 projects worth over £4.2 billion with measurement indicating that 84% has been re-invested in Wales.  

"The new EU Directives have been in development for several years, but now we have them, and there are many exciting possibilities that will flow from this new Legislation.

"The new Directives are supporting the direction that we have taken in Wales, particularly in building more sustainable outcomes in the way that the public sector procures goods and services. Hopefully other parts of the UK will now catch up with us on this issue."

The Minister added:

"We are using procurement policy to encourage ethical and responsible business behaviour.

"Last year, I also issued a Procurement Advice Note on blacklisting. We were the first Government in the UK to take action to use procurement to help stamp out this unacceptable practice.

"Earlier this year I announced our intention to introduce Project Bank Accounts in Construction, to ensure that sub-contractors involved in public construction projects are paid on time. Three pilot projects are being progressed and I will be issuing guidance to the public sector later this month to promote use of this innovative approach.  

"These progressive policies show that Wales leads the way in the UK."