Hansard

I agree on that point. The EU-wide framework opens up opportunities for Scottish companies, because the scale of procurement by the public sector across the EU is huge. In 2010, public procurement across the EU totalled €2.4 trillion.

I have become very aware that, in almost every piece of work that the ICI committee has carried out recently, we have consistently heard about the importance of getting the procurement process right if we are to ensure the delivery of high-quality, cost-effective and sustainable public infrastructure and services.

I am aware that the forthcoming bill will have sustainability at its heart. The bill will establish a more transparent and streamlined national framework for sustainable public procurement that supports Scotland’s national and local economic growth by ensuring that public procurement delivers economic, social and environmental benefits.

Sustainable procurement can contribute to a reduction in greenhouse gas emissions through the use of more responsibly sourced or locally sourced low-carbon materials. It can also serve to encourage and foster innovation among suppliers, leading to an increase in the availability and effectiveness of sustainable products and services. Importantly, a more sustainable approach to procurement can lead to higher levels of contracting or subcontracting to SMEs, leading to the creation of local jobs.

Contracts should also allow for the improvement and development of skills through professional or vocational apprenticeships, or by offering opportunities to the long-term unemployed. The committee has heard of good practice already being applied in that regard on the Forth replacement crossing and M74 construction projects.

When the ICI committee comes to scrutinise the bill, we will need to consider what might be done to engage with those businesses that currently have difficulties in implementing sustainable procurement. They could be constrained by a lack of resources, appropriate skills or capacity, by perceived costs, or by a lack of senior executive or organisational support.

We will need to consider and understand the whole-life value of a product or service as opposed to the initial up-front cost, as well as other benefits such as a reduction in carbon emissions or in waste generated. Adopting a whole-life-value approach to procurement is fundamental to delivering a sustainable solution.

For example, the construction of a new building accounts for only 15 per cent of its lifetime greenhouse gas emissions, so it is imperative to ensure that new buildings are designed with high energy efficiency standards and that all the equipment, utilities and services that are required throughout its lifetime are procured with sustainability in mind.

Another key objective of the reform agenda is to make the procurement process more streamlined and accessible. The bill is likely to propose the further development of a single portal for bids, building on the existing public contracts Scotland portal. That is essential if we are serious about making it easier for businesses—SMEs, in particular—to access public contract and subcontracting opportunities.

We must also recognise the importance of the third sector and the need to ensure that the proposed improvements provide enhanced opportunities for engagement by social enterprises in the procurement process. The Scottish Government is shortly to produce a report setting out the detail of how that might work, which will certainly be of interest to the ICI committee and to others who wish to provide input to the bill scrutiny process.

Some of the responses to the Scottish Government’s public consultation—mainly from local authorities, executive agencies and quangos—raised the issue of resources and identified the need for shared service agreements to help minimise costs and any burden on resources. That approach is already well advanced among groups of local authorities in Scotland, and the recent establishment of the single police force and the single fire service is another obvious example of how sharing of services can deliver cost savings and other benefits. It would be useful to hear views on what more can be done to help facilitate and further develop that approach.

We cannot ignore the fact that the European Commission is currently conducting a comprehensive review of the EU procurement directives. It is clearly essential that the proposed bill is compliant with the updated EU directives when they emerge.

We must remind ourselves that we have already been making good progress on procurement in the public sector in recent years and that in some areas we have excelled. Last year, for example, Scottish Water became the first Scottish organisation—and the world’s first water utility—to achieve gold certification status from the Chartered Institute of Purchasing and Supply. However, we need to examine how good and innovative procurement practices can best be harnessed and shared with other public bodies so that the wider benefits can be realised. We need to develop skills and training on procurement across the public sector to ensure that good practice and the improvements to be introduced by the reform agenda can be implemented.

I believe that the aims of the public procurement reform bill will be welcomed, as the bill will establish a legal framework for sustainable public procurement that supports Scotland’s economic growth. It will help to ensure that we can get additional value from procurement, especially on major contracts. The additional value could be economic, social or environmental.

The bill will strengthen and improve existing procurement legislation and guidelines, removing inconsistencies. It will make doing business with the public sector simpler, more transparent and more accessible to suppliers—especially SMEs. It will strike the right balance in delivering benefits without adding unnecessary costs or risks. It will further promote the use of community benefit clauses that have already provided more than 3,500 training and employment opportunities.

I look forward to hearing other members’ views on those and other issues during the debate. I am sure that the Cabinet Secretary for Infrastructure, Investment and Cities will pay attention to what is said this afternoon, as the Government refines and finalises its legislative proposals.

I move,

That the Parliament notes that the Infrastructure and Capital Investment Committee, in advance of the introduction of the Scottish Government’s proposed Procurement Reform Bill and in order to inform any future work in this area, would welcome members’ views on the efficacy of current public procurement processes and on the scope and potential for improvements to be made to these processes.