5. What assessment has the Minister made of the impact of the Welsh Government's public procurement policy? OAQ53691

The Wales procurement policy statement is having a positive impact on the economy and communities of Wales, with Wales-based suppliers now winning 52 per cent of the annual £6.2 billion procurement expenditure, up from 35 per cent in 2004. Going forward, our policies will build on this to further strengthen the Welsh economy.

Minister, you'll be aware that when the National Procurement Service was first created in 2013 the then Minister, Jane Hutt, described the NPS as a

'very Welsh way to meet Welsh business needs but also value for money for the Welsh pound.'

Since then, however, as you know, the NPS has made significant losses, ultimately leading to the decision by the Welsh Government to review the NPS altogether.

Now, naturally, public procurement has been cited in the Welsh Government's own economic strategy, the economic action plan, as being a key enabler for driving forward business growth and job creation here in Wales. Can I therefore ask you to outline what you believe are the core factors that have contributed to the failure of the NPS? Do you agree that the failure of the NPS constitutes a serious and significant blow to the Welsh Government's overall programme for policy delivery in this Assembly term?

In terms of the NPS, I would certainly refer you to the review that was undertaken of the NPS, which set out what our stakeholders told us they felt wasn't working as well as it could through the approach, and they were things such as not taking a sufficiently strong regional approach or not taking a sufficiently strong local approach to it. So, I think in terms of the most important thing, really, being moving forward from here, work is ongoing now in terms of the future delivery strategy. That work is well under way, as I say. We're sharing a draft with stakeholders by early summer of 2019, and I'd be more than happy to offer colleagues across the Chamber the opportunity to have a briefing session with officials and the opportunity to feed into that strategy, because I know that there's a great deal of interest in public procurement across the Assembly. The initial draft, as I say, should be ready by the end of the month, by which point we would start to go out to discuss it with stakeholders.

We're further refining some of the milestones that we would want, to take account of the feedback that we've already had from the Welsh Local Government Association and NHS Wales. That draft strategy will be the basis for undertaking some further consultation on a new way forward. We'll also be using events such as Procurex as a means of raising awareness of the work, and engaging with as wide a range of stakeholders as possible. But I'm absolutely clear that the way in which we move forward with this agenda has to be very much co-produced with those people who'll be using the service and benefiting from the service.    

Minister, there's no doubt in my mind that the Welsh Government has an ambitious and dynamic strategy through which to harness the power of public procurement for the betterment of communities across Wales. But in order to do so, it's absolutely vital that we have procurement specialists right at the heart of local government, and we know that there are shortages within this area. So, what discussions have you had with the local government Minister around this and, in particular, are there any plans for a successor scheme to the Home Grown Talent scheme, which proved to be so successful a few years back?   

Thank you for raising this, and I think that procurement is a very undervalued profession, given the huge difference that decisions made by procurement specialists can make to the local economy particularly. So, skills and capability are priority areas in the new approach that we're taking, and a new skills and training programme is going to be developed. Again, we'll do that in conjunction with stakeholders. The focus will be on not just procurement, but wider issues such as thinking innovatively, to take advantage of state aid rules and the procurement rules, to apply new approaches to procurement to achieve the economic benefits, create jobs and achieve well-being objectives across Wales. And in addition to this, we'll be providing new supporting guidance in key areas, such as social care and construction, to drive up consistency and capability in the commissioning and procurement of those vital areas of public service delivery. Again, we'll be looking particularly at risk assessment and management in terms of the work that we're doing to enhance capability within the sector. But I'm very clear that procurement professionals will be playing an absolutely key role in driving this agenda forward, and it was something that the First Minister set out very clearly in his leadership manifesto as one of his own priorities.   

Unfortunately, the environment Minister has had to leave the Chamber, but I had hoped to thank her, in her presence, and her officials for the way they worked with and Bangor University after I’d suggested that we should work together on a way of saving the Prince Madog ship, and to turn it into a research vessel for Wales on maritime issues. I understand that those discussions with the Minister’s officials and the university had been very positive indeed, but a decision had been made that procurement rules made it impossible to proceed with that project, which could have saved that hugely successful relationship that’s existed between the university and P&O over a number of years. And I know that the environment Minister, who is back in her seat now, agrees with me in this regard, but may I appeal on you as Minister to do everything you can to ensure that a spec can be put together that would mean that it would be possible to work within procurement rules to proceed with this important project, which would save the ship, the excellent research work and local jobs?

Thank you for raising this, and I'm very happy to meet with the Minister to explore how we might take this agenda forward.