Thank you, Madam Presiding Officer. I formally move the amendment in the name of Paul Davies.

Public procurement plays a crucial role in the Welsh economy. A Welsh Government written statement in February 2011 revealed that the Welsh public sector spends over £4.3 billion on external goods and services. This equates to around one third of its annual budget. Of this figure, the Welsh Local Government Association estimates that 53 per cent was spent by local authorities. If we are to take full advantage of the full potential offered by the purchasing power of the public sector, reform is required. There is clearly a need, therefore, to better scrutinise procurement policy and its impact across Wales. The Welsh Government must appreciate the role of procurement as a tool for stimulating home-grown economic growth.

Wales is currently seeing a renaissance of large-scale infrastructure projects. The recent and very welcome announcement of the Swansea bay city region deal follows the Cardiff city deal. We look forward to other projects in the pipeline, such as the M4 relief road, the various tidal lagoons and the metro projects. Every pound spent in infrastructure projects directly boosts GDP by £1.30, with indirect effect to £2.84 per pound spent. It is vital, therefore, that the Welsh public sector focuses on providing the maximum benefit for Welsh communities and takes responsibility for generating economic, social and environmental growth.

By targeting recruitment and training opportunities in public contracts, a contribution can be made to addressing the issues of poverty and reduced social mobility. Organisations in the private and voluntary sectors are vital to local and regional economies. They must review public sector contracts in a positive way, and should do business with them. The public sector must make better use of their purchasing power to create opportunities for jobs and training for regeneration, and to maximise the value for money. We must have regular updates, especially on how local authorities are adopting and putting in practice these principles. We need all information on contracts being awarded, and the real outcome of these contracts on local economies. The bidding system must be streamlined and made easier, to ensure bids are not discouraged, and it is essential that all procurement processes must be completely transparent and ensure stability and confidence in the procurement system in Wales. We therefore need strong monitoring procedures to ensure transparency is maintained.

The number of public sector contracts awarded to Welsh businesses needs to grow. The opening up of more contract opportunities is vital for smaller local suppliers and third sector organisations. We need to break down the barriers through assessing the public sector’s procurement opportunities. The Federation of Small Businesses has long called for a breakdown of contracts into lots, and that a simplification of the process should continue. Deputy Presiding Officer, we need to ensure the public sector in Wales is geared up for this challenge. We must give Welsh small and medium-sized businesses a level playing field in bidding for contracts. We need to grasp the possibilities that have been presented to us. We have to ensure we maximise the benefits of reforming public procurement for the people of Wales from now on. Thank you.