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PRESS RELEASE

30 June 2010

F&P 09/09/10

GOVERNMENT PURCHASING POWER SHOULD BOOST LOCAL ECONOMY

Government purchasing power should be used with greater effect to support the local economy. That was the message from the Committee of Finance and Personnel which today gave a cautious welcome to the response from the Procurement Board, to its recent Inquiry into public procurement in Northern Ireland. The Procurement Board is made up of all Departmental Permanent Secretaries and is chaired by the Finance and Personnel Minister.

Committee Chairperson, Jennifer McCann, MLA said: “In this era of increasing pressure on public expenditure, it is vital to provide opportunities for our local SMEs and those in the social economy sector. Government procurement is a key strategic tool which the Executive can use to help community based businesses.

“The Committee welcomes the Procurement Board’s action plan, considered at our meeting today. We are pleased to see the introduction of a Fair Payment Charter which will ensure sub-contractors receive the benefits from earlier payments to the main contractor. We also welcome the Board’s commitment to measure the benefit that a business can provide for their communities as part of the environment in which a tender application is judged.

“However, there is much work to be done in relation to the use of framework agreements. These agreements, which effectively pre-select companies entitled to tender for government contracts, were a key issue raised by stakeholders during our inquiry. We believe that it is also important to build the capacity of community based businesses and the Committee calls for the Board to address these issues.

”Further work is required to ensure that our communities get the most out of the long-term positive social, economic and environmental outcomes from public procurement expenditure. This commitment by the Procurement Board is a start.”

ENDS

Notes for Editors

The Committee for Finance and Personnel is one of the statutory committees established by the Northern Ireland Assembly on 9 May 2007.

As per paragraph 9 of Strand One of the Belfast Agreement, Statutory Committees have the power to:

• consider and advise on departmental budgets and annual plans in the context of the overall budget allocation;
• approve relevant secondary legislation and take the Committee stage of relevant primary legislation;
• call for persons and papers;
• initiate inquiries and make reports; and,
• consider and advise on matters brought to the Committee by its Minister.

The Committee for Finance and Personnel Report on its Inquiry into Public Procurement Policy in Northern Ireland is available at: http://archive.niassembly.gov.uk/finance/2007mandate/reports/Report_19_08_09R.htm.

Committee Members:

Jennifer McCann (Chairperson) (Sinn Fein)
David McNarry (Deputy Chairperson) (UUP)
Jonathan Craig (DUP
Dr Stephen Farry (Alliance)
Simon Hamilton (DUP)
Fra McCann (Sinn Fein)
Mitchel McLaughlin (Sinn Fein)
Adrian McQuillan (DUP)
Declan O’Loan (SDLP)
Dawn Purvis (PUP)

Further information on the work of the Committee is available on the Committee pages of the Northern Ireland Assembly website: archive.niassembly.gov.uk

Media enquiries should be addressed to:

Debra Savage
Communications Officer
Northern Ireland Assembly
Telephone 028 9052 1405
Mobile : 07920 864221
Email: debra.savage@niassembly.gov.uk