Local firms benefit from record procurement spent

Locally owned firms secure over 90% of the contracts awarded by the Government in Northern Ireland, Finance Minister, Nigel Dodds has revealed.

Last year, Government procurement expenditure was £2.2billion and departments have indicated that 90% of the contracts awarded this year will be secured by local firms, the overwhelming majority of which are Small and Medium-Sized Enterprises.

Commenting on the figures, the Minister said: “Despite the fact that we are entering a global recession that will undoubtedly impact on local businesses, I remain committed to overseeing the continued roll-out of unprecedented levels of public procurement spend, particularly in the area of infrastructure investment.

“Government is required to advertise all procurement opportunities above the EU threshold in the Official Journal which is published right across the EU. It is therefore a real testament to the capability of NI firms that local businesses are winning the lion’s share of the contracts on offer from Government. The good news for the local economy is that over 90% of this work is going to local firms, which is providing much needed employment across Northern Ireland for those working in small businesses.

“Despite this, I am always keen to look at ways of encouraging local firms to bid for Government work and that is why I recently launched ‘e-sourcingNI’ – a new electronic system to speed up and simplify the tendering process for small firms.”

The Minister went on to highlight the benefit that local companies have gained from working in tandem with overseas firms when delivering large infrastructure projects locally. Mr Dodds welcomed the partnership that had developed between local firms Farran’s and Graham’s when working with German contractor Bilfinger Berger on the construction of the Westlink upgrade.

The Minister continued: “When Northern Ireland firms partner with other organisations to deliver local projects, it opens up literally a world of opportunities for our indigenous firms.

“With the partnership they forged with Bilfinger Berger on the Westlink project, Farran’s and Graham’s were recently able to successfully bid for a £320million road building project in Scotland.

“Not only can local firms continue to win the vast majority of the Executive’s record spend, but they can challenge for work beyond these shores and bring additional benefit to the Northern Ireland economy.”

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