6. Will the Minister make a statement on the use of SQuID for purchasing by local authorities? OAQ(5)0001(FLG)

The supplier qualification information database makes it easier for Welsh suppliers to compete for Welsh public sector business. It is a requirement of the Wales procurement policy statement to which all local authorities are signatories.

Can I thank the Cabinet Secretary for that response and managing to get out what SQuID actually stands for much better than I could have done? I’m going to carry on with SQuID, though. [Laughter.] SQuID is an excellent scheme that allows smaller contractors to compete across a range of projects, and Welsh Government policy is that all local authorities should use it. A survey by the Electrical Contractors’ Association shows that while all local authorities use it, only seven of the 22 councils use it exclusively. Can the Minister investigate this and try and get all councils to use it for all their contracts?

I thank Mike Hedges for that and, of course, I welcome feedback from the Electrical Contractors’ Association and others who have an interest in procurement here in Wales. Mike Hedges is quite right that the evidence shows that SQuID has made a positive impact on the construction sector. Prior to its introduction around 30 per cent of all contracts in Wales were won by indigenous suppliers. At the end of the last financial year, only two months ago, 82 per cent of major construction contracts awarded through Sell2Wales were won by indigenous Welsh businesses. So, it is a success story. I read the research that the Electrical Contractors’ Association were drawing on. It is Welsh Government’s policy to encourage all public authorities to make the maximum use of the SQuID approach, and I’m very willing to ask my officials to make further efforts to make sure that its use is maximised across all public procurement.

And, finally, Janet Finch-Saunders.

Whilst we broadly support the SQuID procurement process it is fair to say that probably one of the reasons that only seven out of 22 local authorities are using it—the point that my colleague Mike Hedges made—was the fact that there is still a lot of bureaucracy and red tape involved with very small companies trying to actually tender for lots of works taking place within a local authority. How do you intend to work with our local authorities over this next term to ensure that we do keep the pound going around in our own localities and that we allow some of those small businesses who haven’t got the time or the resources to spend finding their way and navigating their way through this bureaucracy and red tape, so that they can actually have a piece of the action and some of the money for local jobs?

Can I thank Janet Finch-Saunders for that question? I think it’s important to say that the Electrical Contractors’ Association’s own research said that only seven of 22 councils use the system in full—far more of them use it for parts of what they do. So, it’s a matter of building up from what they do already to use it in even greater dimensions of their work. I understand the point she makes about trying to keep bureaucracy to a minimum. The SQuID approach is deliberately designed to try and make it easier for small indigenous firms to compete for business by making access to procurement and potential contracts easier for them. I’m very happy to say that we will continue to work with local authorities and others involved in this field to bear down on unnecessary bureaucracy wherever that can be identified.

I thank the Cabinet Secretary.