3. Statement by the Minister for Finance and Local Government: Procurement Update

Part of the debate – in the Senedd at 2:58 pm on 25 January 2022.

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Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru 2:58, 25 January 2022

(Translated)

Thank you, Minister, for your statement. I've used, of course, in the past the comparison that the Welsh economy is like a bucket with holes in it, and it's not water flowing out of it but wealth and money that would strengthen the Welsh economy and local economies across Wales if we managed to close those holes in the bucket.

We are, of course, talking about huge sums here: £6.3 billion a year on public procurement in Wales—less than half of that remains in Wales. Now, we've talked about this for over 20 years of devolution and I still don't feel that we've reached the position that I think we should have reached, to be honest, and we're looking at other nations across Europe where over 90 per cent of the value of public procurement remains within the boundaries of those nations. That's why, of course, Plaid Cymru wanted to create a target of 75 per cent of the value of procurement remaining in Wales, and that is important because every additional 1 per cent that we do keep corresponds to 2,000 new jobs. So, reaching that target would create 46,000 jobs in Wales and would create them without spending any additional money—only spending the money that we already spend in a way that brings more benefit into our economy here in Wales. I'm very pleased—and the Minister, of course, referred to the co-operation agreement between Plaid Cymru and the Welsh Government—that this aim of establishing a target is something that will be considered seriously now to try to ensure the greatest possible benefit for the economy here in Wales. 

I acknowledge the fact that you referred in your statement to increasing capacity and increasing skills within the procurement practitioners in the public sector. Of course, I'm sure we would all acknowledge that there is a long way to go yet, but certainly in terms of capacity after we saw a number of procurement departments being run down over the years as a result of economic cuts and austerity in terms of public expenditure.

There are many benefits, as the Minister has outlined, in good procurement policy. But what I haven't heard in your statement is what the fundamental principles that will be at the heart of public procurement policy are. Tell us, for example, to what extent you will demand in your policy that it will be a 'local first' policy, where possible. That, I assume, would be the starting point, and if it isn't available locally, then you go further afield to seek those products or services that you want to procure.

The statement talks about working with other Ministers, of course—you referred specifically to steel in that regard. Can you tell us what other areas you'll be focusing on and prioritising? I would presume, and we have heard in the previous contribution, that food and agriculture is one sector ripe for benefiting from, and this would all contribute towards increasing the processing capacity in Wales in the context of food in particular.

Will you also encourage every local authority in Wales, perhaps, to emulate the success of Gwynedd Council? Because the council has used the social benefit procurement clause and, as a result of that, they've seen an increase of 39 per cent in their expenditure on contracts and products within Gwynedd. It's gone up from £56 million in 2017-18 to £78 million last year. Now, Gwynedd has shown in that regard what is possible, but, of course, this has to be the norm and not the exception, perhaps. So, I would ask you to congratulate them, but also to encourage other local authorities to emulate that success.