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

Part of the debate – in the Senedd at 3:10 pm on 25 January 2022.

Alert me about debates like this

Photo of Rebecca Evans Rebecca Evans Labour 3:10, 25 January 2022

I thank Mike Hedges for those particular questions, many of which will be part of the detailed policy discussions that will be had as the public procurement Bill here in Wales starts to develop. And I know that my colleague the Minister for Social Justice will have heard those particular queries in relation to what the Bill will aim to achieve and what legislation will put in place.

I'm really pleased that Mike Hedges acknowledged the importance and the opportunity that public procurement has in respect of decarbonisation. That was one of the areas that he referred to at the start. We're seeking to explore what more can be done in that area. Very recently, we've been publishing Welsh public procurement notices for the Welsh public sector in Wales. That covers Welsh Government, the NHS, local authorities and others. And one of the areas we've been doing work in is in relation to purchased goods and services. So, that would include business travel, employee commuting, waste disposal, use of sold products, transportation and distribution, up and downstream, investments and leased assets and franchises. And I mention that because the importance of addressing purchased goods and services is underlined by research that shows they can account for up to 60 per cent of an organisation's total carbon footprint. So, the opportunities there to make some inroads in relation to the journey towards net zero are quite significant. Part of our work through the procurement notice is supporting Welsh contracting authorities in the ways in which they can drive their carbon footprint down through decarbonisation—down through the choices they make through procurement, I should say. So, that's been really important. 

Mike Hedges is right to point to the good work that was undertaken in Preston. That was really what started part of our journey towards the foundational economy work, looking very closely at what happened there and employing the Centre for Local Economic Strategies to provide us with some detailed advice on how we can start to do similar things here to make sure that we have that pound recirculating within our foundational economy approach here in Wales. So, all very critical points, and some of those more detailed questions will be part of the consideration for the Bill.