Plaid AM calls for Welsh Government public procurement support

Wales’ performance when compared to Scotland is scandalous

Plaid AM Dai Lloyd has called on the Welsh Government to significantly increase the number of public sector contracts awarded to welsh companies to boost the welsh economy and create jobs.

Dr. Lloyd has recently been contacted by vehicle leasing or contract hire Companies in South West Wales who were unhappy with the fact that they were unable to tender to supply vehicles for local councils and Health Boards as those bodies had been told by the Welsh Government to use a UK-wide Framework – of which local suppliers were not members.

Following representations by Dr. Lloyd, the Welsh Government has now agreed to develop a Wales-wide framework for the supply of vehicles, which will hopefully result in these local companies benefiting.

Dr. Lloyd believes that this example shows that the Welsh Government need to be doing more to support Welsh companies.

Dr. Lloyd stated:

“The Wales Audit Office found that during the 2015-16 financial year public bodies in Wales spent around £6bn on the procurement of goods, services and works.

“This is a significant amount of money and the Welsh Government needs to be doing all that it can to ensure that as much of that money as possible is spent in Wales, supporting business growth and creating jobs.”

According to ValueWales (an internal unit within the Welsh Government), every 1% increase in procurement levels in Wales will create 2,000 jobs. Wales only awards around 55% of public contracts to Welsh firms, whilst Scotland awards around 75% to Scottish firms.

Dr. Lloyd stated:

“Plaid Cymru has consistently stated that we want to create 40,000 new private sector jobs in Wales by increasing the number of public sector contracts going to businesses in Wales by 20%.

“This would mean that more money would be circulating within the local economy, creating more jobs and supporting businesses in Wales.”

“I am pleased that the Welsh Government is now looking to ensure that an All-Wales procurement framework will now be developed for vehicle leasing or contract hire – something which will hopefully benefit companies within my region.

“However, we know that Wales is lagging behind countries like Scotland in terms of the level of public contracts awarded to home-grown companies. The Welsh Government needs to look to these countries who are achieving impressive public procurement rates, and translate that to Wales. It is vital for our economic growth, and job creation, and it is a scandal that Wales is only awarding around 55% of public contracts to Welsh firms, whilst Scotland awards around 75% to Scottish firms.”