GOING FOR A HOME WIN

When spending public money, it’s important to work it extremely hard and extract every single possible benefit. We need to take a fresh look public sector procurement of goods and services in Wales and ensure that an increasing percentage of our public sector spend is targeted towards local businesses and local suppliers. When taxpayers’ money is being spent, it is important that every single possible added value be squeezed out of it and it is vital that we spend as much of possible of it as we can to support Welsh businesses. 

At a very simple economic level a sustained and encouraged ‘buy local’ campaign is a real economic must, while this will necessitate legislation to improve public procurement, it is something that can provide real opportunities for Welsh based business within the procurement chain – potentially this could create some 50,000 new jobs. Significantly improved local procurement policy can create and secure jobs, boost employment levels and help small to medium sized enterprises in many of our communities. 

Again at a very basic level it comes down to maximising the local economic opportunities from the £ 4.3 billion pound public sector spend in Wales – which is used to procure and purchase goods and services.  There have been some real improvements when it comes to public procurement over the last ten years, but, there is still room for substantial improvements to be made.  The increase in Welsh procurement of goods and services from 34% in 2003 to 52%  (June 2012) something that follows extensive efforts by Plaid Cymru as part of the One Wales government (between 2007 and 2011).

A Plaid Cymru government will legislate to make it mandatory for public sector bodies to follow Welsh Government policy on procurement. Social, employment and environmental considerations will be given the same weight of consideration as price when choosing a supplier.

The Party of Wales will use the freedoms provided under the new Public Contracts Directive to achieve maximum social and environmental benefits, including payment of the Welsh Living Wage for all employees and the MacFarlane standard of a minimum of one year’s employment for a person from a disadvantaged background employed per £1 million expenditure. We will also seek to expand and extend the role of the social sector in the provision of public services and goods.

All public sector agencies will need to reach agreed standards of one procurement specialist, with appropriate professional accreditation, per £10 million expenditure by 2020. We will provide direct funding for an additional ten experienced public procurement managers to the National Procurement Service to increase our ability to achieve our goal of increasing local purchasing while continuing to improve quality of service.

All public authorities in Wales, under the aegis of the Welsh Government, will be required to provide comprehensive real-time supplier information so that we can operate a Open Contract system publishing the details of every public service supplier and buyer in Wales, including future pipelines, providing an accurate and up-to-date picture of the level of Welsh SME procurement while helping increase it.

We will set a target of keeping 75% of first-tier Welsh public procurement expenditure within Wales, with locally-owned or locally controlled firms, cooperatives and charities (defined on an independently agreed basis), to create in excess of 40,000 new private and social sector jobs, and develop a further target for 2^nd tier and 3rd tier suppliers in larger contracts.

We will achieve this in part through ensuring appropriately sized contracts for small and medium sized companies and by providing direct support to Welsh firms seeking Welsh public contracts. The new WDA will work with the National Procurement Service to identify two to three initial priority areas for supply chain development e.g. construction and care services. Our Government will establish a digital currency for Wales – the first of its kind at a national scale – and use it on an experimental basis to procure services and accept payments to measure its potential for retaining the flow of money within the Welsh economy.

The bottom line has to be that if we are going to spend public money then it is only right that it be worked extremely hard and we need to maximise the economic impact every single penny and every single pound and to make sure that it works to help the Welsh economy. Back in 2013 for every £2 spent procuring goods and services, £1 of that ‘leaked’ out of Wales and the Welsh economy.  Value Wales suggested that for each 1% increase in goods or services procured from Wales, some 2,000 jobs are created.

So if we can achieve a local public spend of something close to 75% then potentially some 46,000 additional jobs can be created. The impact of a well thought out and implemented public procurement policy is something that could economically give and give again. This is the crux of the matter, it could be a real win win situation for Wales, potentially cutting unemployment by around a third or about the same number as the increase in unemployment that we have suffered since the recession began. 

A HOME WIN

When it comes to spending public money it makes perfect sense to work it extra hard, to extract as much value for money from it as possible. One way we can (at all levels) work public money extra hard is by raising the levels of local public procurement, to give Welsh companies and Welsh workers more opportunities to benefit from public spending so that and their wages can circulate in the local economy.

Back in 2012 statistics showed that only 52% of Welsh public spending goes to companies based in Wales. Value Wales calculated that every additional 1% increase means 2000 more jobs in Wales. Improving Welsh public sector procurement to reach 75% would mean an increase of 46,000 jobs in Wales. Plaid has rightly called for legislation in procurement best practice to help create almost 50,000 jobs in Wales.

For once Wales has been ahead of the curve (even if the current Labour in Wales government (in Cardiff) has been dragging their collective feet), this is something that was recommended to the Welsh Government in the summer of 2012 by the  McClelland Report for the Welsh Government. It is reasonable for the Welsh Government to take action to ensure that a greater percentage of that money can be spent locally in Wales.

Our local authorities spend around £4 billion pounds (April 2012) worth of our money buying goods and services. A target of 75% of the public sector spend, being spent here in Wales, is an excellent idea, as it means that  around £3 billion pounds of tax-payers money staying in Wales.

A survey commissioned by the Welsh Government (back in July 2010) reported that almost half of all food and drink bought by schools, hospitals and local authorities in Wales was of Welsh origin. The 2010 Welsh Public Sector Food Purchasing survey revealed that Local authorities had increased their purchases of local food by 90.5% in the previous six years.

Key categories included bread, milk, fruit and vegetables, ready meals, soft drinks, dairy products and water. The NHS (in Wales)  purchased 69% of the food and drink products in Wales, when it comes to milk on average, 50.9% of all the milk purchased by Welsh local authorities for schools was locally-produced.

Welsh higher education purchases accounted for 41.3% in 2009, this compared with 28.7% in 2003, in the field of further education some, 39.6% of purchases were of Welsh origin, up from a previous figure of 16.8%. The survey noted that only organisations the MoD and our Police Forces purchased less food sourced from Wales with a 0.4% decrease.

The procurement process should build upon Local Sourcing Action Plan’s and should lead to real social, economic and environmental benefits for all our communities by retaining the money spent in the local economy. This is sustainable development as local investment can provide a range of benefits across the whole of Wales benefiting local farmers, local suppliers and producers and local people.

One side effect of this should be a reduction in food miles, reduced carbon emissions which to help fight climate change and reduced transport costs. If this is done right then we can ensure that more of that money remains in local economies longer and benefits local firms and food suppliers, to use a footballing metaphor prior to the start of the season, there is no reason why this should not be a real home win for Wales.

YOU ARE ON YOUR OWN BOYS...

News that Downing Street has public criticised the retailers for their silence in the on-going horsemeat scandal may well be a significant development in the questionable relationship between the politicians (at Westminster and elsewhere) and the large supermarket retailers. With Downing Street criticising the apparent reluctance of stores involved in selling affected products to step up to the plate and comment publicly on the horsemeat crisis – this could be interpreted as David Cameron telling the supermarkets that they are on their own and that its time to face the music.

The BBC quoting Number 10 sources reported that they were told that “it isn't acceptable for retailers to remain silent while customers have been misled about the content of the food they have been buying". They also allegedly said that  those selling affected products should answer key questions such as how did the crisis arise, what inquiries have supermarkets made about their suppliers and how can any similar problems be avoided in the future.

Some people will always seek to maximise profits, regardless of the consequences for the rest of us. This whole sorry saga is about chasing profit, with the pressure coming down from above for the cheapest red meat, so that profits can be maximised by the retailers at the cost of quality. The retailers silence is telling, as their persistent failure to ask too many questions (or looking the other way) on the part of the larger retailers has led us to where we are now.

Irish food inspectors announced last month they had found horsemeat in some beefburgers made by firms in the Irish Republic and the UK, and sold by a number of UK supermarket chains including Tesco, Iceland, Aldi and Lidl. Since then, a growing number of UK retailers have recalled processed beef products found to contain horse DNA. UK police are currently investigating allegations that horsemeat was mislabelled as beef have arrested three men on suspicion of offences under the Fraud Act.

In response to finding themselves (temporarily) out in the cold some the reluctant purveyors of hidden horsemeat said that they would speak out once the results of tests to determine the presence of horsemeat in processed meals are released. The first results of industry-wide tests are due to be released sometime today (Friday 15th February 2013), they were ordered by the Food Standards Agency after the revelation that quantities of horsemeat had entered some beef ready meals.

Samples of beef products have been examined in laboratories for traces of horse DNA as part of the tests, and food retailers said they would have results from about 30% of their product ranges.
Retailers said getting through all their processed beef ranges could take several weeks. Some shops have already recalled products they found to be contaminated - including Asda which withdrew a beef bolognese sauce on Thursday, the first fresh beef product to be involved. Aldi, Tesco and Findus have also withdrawn some beef-based ready meals.

The problem with hidden horsemeat is not limited to the UK and Ireland as food safety experts from across Europe are due to meet in Brussels this morning to  try to draw up plans on how to conduct DNA testing of a large number of beef food products across much of the continent in the next few g weeks. This meeting follows accusations from the French government who accused meat processing company Spanghero of knowingly selling horsemeat labelled as beef. The firm has denied the allegations, saying it only ever dealt in meat it believed to be beef.

In the wake of the hidden horsemeat scandal it will come as no real surprise that trade in local butcher’s shops has risen by around 15%. What’s important is that the entire meat industry isn't tarred with the same brush and that people finally recognise the benefits of buying produce sourced locally. Here in Wales, we have excellent quality red meat much of which reaches us through our local butcher and other local shops rather than the larger retail outlets.

Our surviving local butchers and local shops are the vital backbone of the Welsh meat industry, so it’s important that they receive the support they need and deserve. This horsemeat scandal will knock customer confidence in the supermarkets, so what better way of helping this important sector of our local economy than by buying the safer, healthier option in local butchers shops and giving a much needed boost to some of our small businesses.

TIME FOR A HOME WIN!

Plaid’s ‘Buy Local’ campaign which aims to raise levels of local public procurement, giving Welsh companies and Welsh workers more opportunities to benefit from public spending so that and their wages can circulate in the local economy. The latest figures show that only 52% of Welsh public spending goes to companies based in Wales. Value Wales has calculated that every additional 1% increase means 2000 more jobs in Wales. Improving Welsh procurement to reach 75% would mean an increase of 46,000 jobs in Wales. Plaid has rightly called for legislation in procurement best practice to help create almost 50,000 jobs in Wales. Scotland is consulting on legislation to ensure that best practice in some areas becomes common practice across the public sector.

Plaid Cymru leader Leanne Wood said:

“Public sector procurement in Wales has had some great successes in recent years to make sure that our Welsh pound is spent on jobs and skills in Wales.

“For example, 80% of money spent on the Arbed programme for home and energy efficiency improvements goes to companies located in Wales.

“That money means food on the table and a roof over the head for skilled Welsh workers and their families, and more money circulating within the local economy to be spent down the high street at the butchers, the hairdressers and the bakers.

“In contrast, money which goes to firms outside Wales is lost to our local economies – and that’s every one pound in two.

“There are ways of improving this at all levels, and it needn’t cost more.

“For example, professionally trained and specialised procurement staff in local authorities, such as those introduced by Caerphilly Council when Plaid Cymru were in charge, can generate both financial savings for the council and secure local jobs.

“Another good example is where Gwynedd Council agreed that the slate for improving Bangor High Street must come from local quarries, supporting 200 jobs in Penrhyn Quarry.

“However, the figures alone show that we can do better.

“If we can improve our procurement practices to increase from 51% to 75% of Welsh public spend to go to Welsh companies then that could create almost 50,000 jobs in Wales.

“The McClelland Report released last Summer suggested that, if best practice wasn’t being followed, then we should be legislating to make it happen.

“The Party of Wales believes that this legislation should be brought forward to ensure that this becomes common practice, not best practice.

“Plaid Cymru MEP Jill Evans has also called for the EU to simplify and relax their procurement rules to help Welsh businesses.”

For once Wales has been ahead of the curve (even if Labour’s elected representatives in Wales have been dragging their collective feet), as this is something that was recommended to the Welsh Government last summer by the  McClelland Report for the Welsh Government. I think that it is perfectly reasonable for the Welsh Government to take action to ensure that a greater percentage of that money can be spent locally in Wales. If you are going to spend public money then you need to work it extra hard and make sure you get real value for money. At local government level our local authorities spend around £4 billion pounds (April 2012) worth of our money buying goods and services. A target of 75% of the public sector spend, being spent here in Wales, is an excellent idea, as it means that  around £3 billion pounds of tax-payers money staying in Wales.

Back in July 2010 a survey commissioned by the National Assembly Government reported that almost half of all food and drink bought by schools, hospitals and local authorities in Wales was of Welsh origin, and the amount of locally-produced food bought by the public sector had risen by 65.8% in the last six years. The 2010 Welsh Public Sector Food Purchasing survey revealed that Local authorities had increased their purchases of local food by 90.5% in the previous six years. Key categories included bread, milk, fruit and vegetables, ready meals, soft drinks, dairy products and water.

The NHS (in Wales)  purchased 69% of the food and drink products in Wales, when it comes to milk on average, 50.9% of all the milk purchased by Welsh local authorities for schools was locally-produced. When it comes to Welsh purchases in higher education, accounted for 41.3% in 2009, compared with 28.7% in 2003, in the field of further education some, 39.6% of purchases were of Welsh origin, up from a previous figure of 16.8%. The survey reveals that the only organisations to have bought less Welsh food than previously were the MoD and the Welsh Police Forces, which saw a 0.4% decrease in Welsh origin purchases.

The process should build upon Local Sourcing Action Plan’s and should lead to real social, economic and environmental benefits for all our communities by retaining the money spent in the local economy. This is sustainable development as local investment can provide a range of benefits across the whole of Wales benefiting local farmers, local suppliers and producers and local people. This should also be a reduction in food miles, and reduced carbon emissions to help fight climate change. Plaid is right to pledge action to ensure that more of that money remains in local economies, this is a home win for Wales.