Assembly fails to deliver contracts to Welsh firms

October 19, 2009 No Comments

The Assembly Government is failing to ensure more Welsh firms land contracts with the public sector. That’s the claim of Conservative AM Jonathan Morgan.

Information obtained by Cardiff North AM Jonathan Morgan reveals that more than half of all local authorities and a third of health boards have procured less than 12% of information communication technology (ICT) services from Welsh businesses. The majority have procured less than 5%.

The information came to light following a Freedom of Information request and follows recent Assembly Government statements committing the Labour-Plaid administration to procuring more public sector contracts from Welsh companies.

In a communiqué following the second all-Wales economic summit held last November the First Minister, Deputy First Minister and Welsh Secretary said they would “continue to maximise opportunities for Welsh companies to benefit from public sector contracts, building on the success to date.”

They added: “We recognise the need for clarity and consistency in the procurement process across the Welsh public sector.”

After the first economic summit ministers said they would announce “improvements to our procurement process for SMEs”.

Cardiff North AM Jonathan Morgan said:

“The Assembly Government made a specific point during the first two economic summits last year that they would continue to maximise opportunities for Welsh companies to benefit from public sector contracts.

“These figures clearly show that there has been very little success in this area.

“With the public sector accounting for nearly third thirds of all employment in Wales, it is a vital business artery for small and medium sized Welsh businesses.

“It is one businesses should be encouraged by all levels of government to tap in to if they are to survive the recession.

“Despite the numerous economic summits and policy statements from the Assembly Government jobs continue to be lost across Wales at an alarming rate.

“Unless medium to long-term measures are put in place now – including a review of public sector procurement contracts – Welsh business will be severely weakened.

“It will mean the Welsh economy could take much longer to recover from the recession than many other parts of the United Kingdom.”

Shadow Minister for the Economy David Melding AM said:

“These figures highlight the failure of the Assembly Government and public sector bodies to work more closely with private sector firms in Wales,

“At a time when Wales is being disproportionately hit by rising unemployment businesses across Wales need to be given every possible support.

“While I accept public sector bodies have to undergo a procurement process when identifying goods and services there are clear advantages of sourcing close to home.

“The public sector runs the risk of contributing to rising unemployment by failing to support Welsh businesses.

“In turn the Assembly Government is also guilty of failing to fulfil the commitments made in a blaze of publicity only a few months ago.”

Cardiff News, Welsh Assembly