North Wales councils urged to ‘take the procurement opportunity’
29 September 2009
During a recent summit held for the six North Wales councils that make up the WLGA’S North Wales Regional Partnership Board, council leaders were urged by Andrew Davies, Minister for Finance and Public Service Delivery to take the procurement route to deliver both cash savings and opportunities for local suppliers.
Addressing the summit attended by over 80 people including council leaders and procurement, finance and economic development officials, the Minister said:
“More effective and efficient procurement can make a big difference to people’s lives. Councils can use the procurement process to improve services and save money. The extension of effective and collaborative procurement to more services could save the Welsh Public Service millions of pounds. For example saving 5% on current public sector spend in North Wales would save £12m.”
During his speech the Minister highlighted how an effective, creative and simplified approach to procurement can lead to cash savings and job creation for local regions and the wider Welsh economy, saying: “We have evidence that for every 1% of public expenditure that can be newly sourced in Wales, 2000 jobs can be created.”
As an example he referred to Wrexham County Council which through intelligent procurement of its home care services has not only maintained the quality of its home care services but increased the amount of care hours provided to older people by 9%.
During the event, councils were encouraged to look at opportunities for better engaging local companies in tendering for public service work by for example:
• thinking more about how they can package work to enable local contractors to compete more effectively;
• making sure that more information is made publicly available about the work that the council will be advertising for tender, as well as taking steps to standardise tendering paperwork;
• providing contractors with more information about the procurement process to give companies a better understanding of what the council is looking for and helping local businesses be more competitive;
• Ensuring that the “best value” element for each contract is defined by quality and not just price.
Cllr Goronwy Edwards, lead member for Regeneration and Communities (Conwy County Borough Council) speaking on behalf of the North Wales Regional Partnership Board said:
“Every leader within the North Wales Partnership Board wants to see procurement deliver cash savings and create more local jobs. Indeed, this summit was aimed at bringing together the key professional communities who can transform our policy aspirations around procurement efficiency and strengthening local economies into a reality which in turn will benefit our local communities. To save jobs, create work for local people and to ensure prosperous communities across North Wales then we must all work together, both across our individual economic development departments and procurement teams and with the Welsh Assembly Government to make local businesses more competitive.”
Conference delegate Mark Owen, Director of Finance and Performance (Wrexham County Borough Council) told the conference: “In this climate value for money comes first when buying goods and services. Savings from procurement are essential to protecting front line services from cuts.”
Ends
Notes to Editors
1. The conference was held in Venue Cymru on 17th September 2009 and sponsored by the North Wales Regional Partnership Board within the WLGA and the Welsh Assembly Government
2. The North Wales Procurement Partnership is a joint service set up by the six North Wales councils to improve procurement efficiency, whilst also being sensitive to the needs of the local economy.