News from Welsh Labour

Wrexham AM calls for “think small” ethos on public sector contracts

A Labour Member of the Welsh Assembly is calling for European procurement rules to be changed, to allow smaller Welsh firms to compete for and win public sector contracts in order to boost Wales’ economy.

Wrexham AM Lesley Griffiths wants Brussels to be more flexible in the rules it sets in the competition for larger public contracts and has called on the Welsh Assembly Government to make representations to the UK Government to argue the case within the EU for changes to be made.

Ms Griffiths believes such amendments would benefit hundreds of small and medium-sized enterprises (SMEs) in Wales during the current economic downturn and would help saving thousands of jobs in the process.

The AM has called on the UK Government – who act on behalf of Wales in EU negotiations – to ensure the European Union adopts a “think small” ethos by allowing smaller firms to bid for public contracts.

She made her call in the National Assembly during Questions to the the Welsh Government Minister for Finance and Public Service Delivery, Andrew Davies.

In her Question, Lesley Griffiths AM said:

“You recently published research that looked at removing the barriers that face Welsh small and medium-sized enterprises when accessing public sector contracts. As you know, European procurement rules mean that limitations remain as to how far you can take forward your progressive approach to help Welsh SMEs at this crucial economic juncture.

“Within the European Union, I know that Ireland is promoting the ‘think small’ ethos by calling on the EU to cut the cost of tender preparation, breaking up contracts into lots, and encouraging partnerships between SMEs to tender for contracts.

“When you next meet UK Government Ministers, will you do all that you can to ensure that they back your approach and that of Ireland on changing the mindset on procurement in Europe?”

In response, Andrew Davies said:

“We are being held up as an example across the UK for our approach to procurement. Only a month or so ago, I had a meeting with the Minister from the Department for Work and Pensions, who was looking at what we are doing to create a level playing-field for supported businesses, such as Remploy. People recognise that we are ahead of the game.

“I very much welcome the research that has been done by Bangor University and Trinity University College, Carmarthen; I suppose that I ought to welcome it, because I commissioned it in the first place, but it confirmed what we have long suspected and gives us a clear evidence base for the need for greater standardisation, for example, on pre-qualification questionnaires and a whole range of other areas.

“The private sector and smaller companies in particular are saying that we need to improve the way in which we, as a public sector, do business. I will be responding formally to the recommendations of the report, but I will say that I broadly welcome it and I am sure that we will be implementing most, if not all, of its recommendations.”

Commenting after her Question, Lesley Griffiths said:

“Small and medium-sized enterprises are the ‘life blood’ of the Welsh economy in terms of employment and wealth generation. It is ridiculous, therefore, that such companies are excluded from competing for and winning larger public sector contracts under the current rules which are set by Brussels.

“The Welsh Assembly Government is progressive and imaginative in its approach and does all it can within the current rules to help SMEs win contracts within its remit. However, when it comes to larger contracts European rules work against smaller companies.

“This situation has to change and I hope the UK Government recognise this and act in the interests of small businesses in Wales by getting Brussels to change its mindset towards SMEs. In the current economic downturn, Welsh companies need all the help they can get.”