Wilson welcomes report on public procurement policy

Finance Minister Sammy Wilson has welcomed the publication of a report into public procurement policy and practice in Northern Ireland.

The report has been published by the Assembly’s Finance and Personnel committee and was debated this afternoon in the Assembly.

Welcoming the report, the Minister said: "The Northern Ireland Executive is investing record amounts in public procurement. Last year, £2.4billion was spent by the Executive in procuring goods and services and investing in capital projects across Northern Ireland.

"This is leading to real improvements for local people as road links are improved, schools and hospitals are built and our town centres are regenerated.

"This investment, however, is also benefiting the many local firms who successfully bid for these contracts. Seventy eight per cent of all contracts awarded by Central Procurement Directorate (CPD) during 2006-2009 went to local firms, the vast majority of which are Small and Medium-Sized Enterprises. In relation to construction specifically, 90% of all contracts awarded by CPD over this same period went to local firms. This has a knock-on effect as this investment filters through the Northern Ireland economy.

"A main theme in the report is the need to build the capacity of local suppliers to maximise the outcomes from public procurement. Good communication is vital to this. I have therefore directed officials to begin work on the establishment of a Forum for Business, which will develop relationships with representative bodies and sectoral groups covering key markets. This Forum will focus on goods and services and will complement the very successful model which already exists in the form of the Construction Industry Forum for Northern Ireland (CIFNI). CIFNI provides a strategically focused interface between government and the construction industry to consider matters of mutual interest.

"I welcome that the Finance and Personnel Committee has provided guidance on how we may go further in helping local firms access this money and as a direct response to this recommendation, I will be directing contract managers to ensure that the benefits of the Public Sector’s commitment to pay invoices promptly, are passed on to sub-contractors.”

The committee undertook a series of evidence gathering sessions prior to formulating the report, which contains 46 recommendations structured around eight key themes.

The Minister concluded: "There are many recommendations contained in the report that I wish to consider. It is worth noting, however, that there is a high level of regulation already governing procurement. Furthermore, I will want to gauge the level of resources that may be required to implement some of the recommendations.

"With that in mind, I plan to carry out a full appraisal on the feasibility of implementing all of the recommendations and I will come back to the Assembly in due course with my views on the report and on a way forward."

Notes to editors:

1. The report’s recommendations are structured around eight themes: The Procurement Environment, Improving Policy and Processes, Maximising Social Value, Building Capacity for Purchasers and Suppliers, Local Government Procurement, Collaborative Procurement and Efficiencies, Litigation and Lessons Learnt and Public Procurement Governance Arrangements.
2. The Construction Industry Forum for Northern Ireland (CIFNI) provides a strategically focused interface between representatives from government and the construction industry, where both parties can consider matters of mutual interest. The chairman of CIFNI is Des Armstrong, Central Procurement Directorate, DFP. It is recommended that Des would also chair the Business Forum.