12 September 2003
Trade and Industry Secretary Patricia Hewitt has indicated the government is prepared to review public service procurement in the UK after union and business leaders slated Labour's current approach.
During a lively debate on the future of UK manufacturing on September 9, TUC general secretary Brendan Barber raised concerns that British firms were not benefiting from the outsourcing programmes underpinning public sector reforms.
Business leaders agreed and Hewitt said all parties should 'get round the table' to discuss the issue.
Union leaders cited the health, transport and prisons sectors as the biggest examples of public services that privatised directly to overseas companies.
Barber said that even when a service is provided formally by a public body, sub-contracting processes often overlook British firms. The biggest examples could be found in local government, the NHS and the Ministry of Defence, delegates said. 'We want better public procurement to ensure that British industry better benefits from the flow of public spending,' Barber told Hewitt.
Digby Jones, director general of the CBI, told delegates: 'We're totally on the same side – using UK taxpayers' money to create jobs in America and Europe is not right. [UK firms] need the same secure and stable order books that other countries enjoy – often unfairly.'
European Union procurement rules prevent the government from protecting UK firms from competition, but other countries stand accused of manipulating guidelines to the advantage of their domestic firms.
Barry Morris, deputy general secretary of manufacturing union KFAT, called on ministers to 'loosen' the UK's approach. He said: 'Local authorities, too, could keep thousands of people in work by buying locally if there's a change of rules.'
PFsep2003
