Committee
Economy, Energy and Fair Work Committee 09 March 2021
09 Mar 2021 · S5 · Economy, Energy and Fair Work Committee
Item of business
Public Procurement Inquiry
Do we have Nick Ford? I can see you on my screen, Nick, but I cannot hear you. 10:00
In the same item of business
The Convener
Con
Item 2 is an evidence session as part of our public procurement inquiry. I welcome Ivan McKee, Minister for Trade, Innovation and Public Finance. He is suppo...
The Minister for Trade, Innovation and Public Finance (Ivan McKee)
SNP
Good morning. I start by saying how pleased I am to make my first appearance at this committee since adding procurement to my portfolio responsibilities. As ...
The Convener
Con
Thank you. Richard Lyle will ask the first questions.
Richard Lyle (Uddingston and Bellshill) (SNP)
SNP
We all know that public procurement has a tremendous impact in stimulating the economy. How is the Scottish Government seeking to promote economic recovery f...
Ivan McKee
Procurement has a significant beneficial role to play, and it is important that we harness the power of that spend, which represents more than £12 billion ac...
Richard Lyle
SNP
Has the Scottish Government given any consideration to developing standardised measures of procurement outcomes to assist in measuring the impact of the sust...
Ivan McKee
If you look at our annual reports, you will see that a number of standard measures are in place in relation to the spend, the suppliers that benefit from tha...
Richard Lyle
SNP
Some small companies feel that they cannot access council tender lists. How can we help small companies, in particular, in that regard?
Ivan McKee
I am always keen to do that, and significant steps have been taken through Public Contracts Scotland, whose quick quotes process makes the overall process ea...
Richard Lyle
SNP
That is good to hear.
The Convener
Con
I have a few questions, minister. What is the Scottish Government doing in terms of the wider supply chain? I am thinking about fair work requirements and so...
Ivan McKee
That is a great question. Prompt payment is an example of an issue that is of concern. Clearly, although the Scottish Government has a good record in that re...
The Convener
Con
You are talking about prompt payment, but I was asking about fair work. What is being done to ensure that contractors that are not the primary supplier adher...
Ivan McKee
Of course, you must remember that, because we do not have control over employment law in Scotland, there is a limit to what we can do with regard to putting ...
The Convener
Con
What can the Scottish Government do through things such as procurement reports to provide us with knowledge about what is going on? We appreciate that there ...
Ivan McKee
You are right about that balance, and we need to get it correct because, at the end of the day, it is businesses that have to provide the data around whateve...
Colin Beattie (Midlothian North and Musselburgh) (SNP)
SNP
Since I was first elected, I have had a stream of complaints about the procurement process and how it disadvantages small companies and so forth. I will touc...
Ivan McKee
Inaudible.—SMEs, which are businesses with fewer than 250 employees, represent about 40 per cent of business turnover in Scotland but benefit from, in total,...
Colin Beattie
SNP
I noted the percentage that you quoted about the volume of procurement that goes to SMEs. The Federation of Small Businesses has said that, although the Publ...
Ivan McKee
Inaudible.
Colin Beattie
SNP
Minister, you are muted.
Ivan McKee
Can you hear me?
Colin Beattie
SNP
I can.
Ivan McKee
Those were percentages of value.
Colin Beattie
SNP
Percentages of value.
Ivan McKee
Yes.
Colin Beattie
SNP
There seems to be an extraordinary difference between the perceptions of the FSB and its members and those of the Government. Do you have any—
Ivan McKee
SMEs are a broad category, which includes everything up to businesses that employ 250 people. Typically, that can be broken down into medium-sized businesses...
Colin Beattie
SNP
What is the Scottish Government’s assessment of the remaining barriers that hold back SME participation? Do you have a concern about anything significant tha...
Ivan McKee
Work continues on understanding where the challenges are. The supplier development programme has been effective, because it engages with such businesses and ...