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Meeting of the Parliament 17 April 2013

17 Apr 2013 · S4 · Meeting of the Parliament

Item of business

Public Procurement Reform

Brodie, Chic SNP South Scotland Watch on SPTV

I am delighted to speak in the debate, and my speech is built on the foundations that were laid by the Christie commission report to which Mary Scanlon has just referred. The report’s clear drivers were as follows: first, that reforms must aim to empower communities and individuals who receive public services and ensure that they are involved in service design and delivery; secondly, that public service providers and demanders must work to integrate service provision; and thirdly, that our whole system of public services—including the public, third and private sectors—must become more efficient by reducing duplication and by sharing services.

Simply put, we have to demolish the current shibboleths of public service procurement and establish sustainable economic growth that is built on a profoundly new buying culture. Gone must be the culture of, “We’ve always done it this way,” and, “We always contract with Joe Blow because he knows us and has never let us down.” Where is the best value or client benefit in those statements?

On Friday last week, I had the delight of meeting one of our more progressive councils, which actively talked about how it would build increased service provision and the buying of services around its communities; how it would seek to engage the local third sector and social enterprises in provision of public services; and how it would review and re-engineer, and recognise that there is a social cost to the community attached to outsourcing of work—just because it has always been done—to commercial companies from well outwith the local or neighbouring authority boundaries. I also dare to suggest that not to examine the effectiveness and efficiency of capable social and third sector enterprises that are close to home impacts on income.

I hope that the bill will place strictures on local authorities that allow commercial companies to retain profits from their contracts, while insisting, in some cases, on clawing back profits from social enterprises and third sector companies that provide services. That applies particularly in the care sector. This is not about protectionism; it is about productivity and social involvement.

In dealing with the bill, I ask the Government to secure at the point of inquiry better and easier standardisation of contracts. Whether or not we agree with 32 councils, it is administrative silliness to have simple and easy standard contracts redrawn and regurgitated across all 32 councils in the country.

I am glad that the cabinet secretary alluded to the living wage. The proposed bill consultation analysis summary says:

“In relation to the Annex regarding the Living Wage ... procurement activity should be used to encourage contractors to pay the living wage to their employees engaged in the delivery of public sector contracts.”

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Meeting of the Parliament 17 April 2013

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