Welsh Government Procurement

1. Questions to the First Minister – in the Senedd on 16 October 2018.

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Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative

(Translated)

6. Will the First Minister make a statement on Welsh Government procurement? OAQ52798

Photo of Carwyn Jones Carwyn Jones Labour 2:10, 16 October 2018

We're committed to maximising the social, economic and environmental value of our procurement.

Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative

Thank you. I have recently acquired a list of transactions on Welsh Government procurement cards for the 2017-18 financial year. I was, however, very shocked to see that nearly £1.6 million was spent on these credit cards over the 12 months, with many of the transactions remaining worryingly vague. One example is the £13,255 spent through PayPal—no information about what was bought and from what companies. Another is £460 spent at yachtshop.co.uk, or the £8,300 spent in one transaction on a British Airways flight. There are also countless instances of these cards paying for Amazon Prime or iTunes subscriptions with no details. What steps are you taking, as First Minister, to improve transparency and financial probity whilst monitoring the spend of hard-earned taxpayers' money on these Welsh Government procurement credit cards?

Photo of Carwyn Jones Carwyn Jones Labour 2:12, 16 October 2018

We regularly publish our spend over £25,000 to improve the transparency of how public funds are used. I will call on the examples that the Member has used and look to provide her with a detailed answer to her questions.

Photo of Jenny Rathbone Jenny Rathbone Labour

Obviously, we have the Wales Audit Office to monitor the detail of these things. I just wanted to ask you about the wider picture in terms of the procurement power that we have. We have a public sector that spends over £4 billion each year on procurement, and I'm very interested in how we might be able to procure more of our spend in Wales so that we're generating local jobs rather than in multinationals that then export the profits.

I'm particularly interested in work that's been done by the National Procurement Service around procuring food. I'm concerned to see from the Climate Change, Environment and Rural Affairs Committee's report last May that there is no public source of accurate and up-to-date figures on public sector procurement of Welsh food, so I'd be keen to learn how we can improve the procurement of local food in Wales, because, obviously, that would be good for our businesses and also good for our health.

Photo of Carwyn Jones Carwyn Jones Labour 2:13, 16 October 2018

Well, what I can say is that we, of course, encourage Welsh public bodies to increase the visibility of contracts via Sell2Wales. Of the 22,000 contracts awarded so far through Sell2Wales, approximately two thirds have been to Welsh suppliers and 75 per cent of these have been to Welsh small and medium-sized enterprises. I know the Member asked about the National Procurement Service, I can say that the proportion of public procurement expenditure won by Welsh-based firms now stands at 50 per cent. From 1 April 2017 to 30 June of this year, the spend through NPS agreements was £7,000,700, and of that, 57 per cent was Welsh-based suppliers. When our community benefits policy is applied, the figures are even higher. For example, 82 per cent of the money has been retained in Wales when that is applied. She asked, of course, how we increase this. We want to do that through the importance of regional and local priorities within local authorities, and we are exploring the adoption of different approaches where regional collaborative procurement is undertaken, which strengthens the economy and communities within those regions.