Scottish and UK ministers are at odds over reform of European Union procurement rules, Scotland’s infrastructure secretary, Alex Neil, has revealed.
The Scottish Government wants the regulations, which are being reviewed, to allow local economic impact to be taken into account in the award of public contracts. Whitehall disagrees.
Neil said he remained hopeful, but acknowledged: ‘Our friends in London do not entirely agree with us, and have not seen fit to support that particular proposal, despite the fact that it would be of enormous benefit to communities south of the border.’
In January, the EU internal market and derives commissioner, Michel Barnier, published a green paper canvassing views on reforming the rules that govern public procurement, which accounts for 17% of EU gross domestic product.
The review is aimed primarily at reducing red tape, encouraging cross-border bidding and improving access for smaller firms. But Barnier said at the launch: ‘My ambition is also to make sure that public procurement can help job creation, innovation and protection of the environment.’
Neil’s view is that current rules work against this objective. He said: ‘If we receive a tender from a company in Ireland against a slightly higher tender from a company in Fort William we have to take the Irish one even though by doing that we will make local people redundant.’UK Business Secretary Vince Cable has also complained about the existing rules, most recently when a £1.4bnThameslink trains contract went to Siemens. But the UK government’s submission to the review focuses on greater flexibility ‘to follow best commercial practice’, rather than serve local interests.
It is one of several divides between Edinburgh and London over intervention to ease economic adversity. Earlier this week, Scottish Finance Secretary John Swinney wrote to Chancellor George Osborne appealing for increased capital spending in the wake of stagnant economic growth figures.
‘A targeted, cost‑effective programme of capital investment would help support the economy at this vital stage and allow for more robust growth to become embedded within the private sector,’ Swinney told the chancellor.
Meanwhile, First Minister Alex Salmond
has announced a £4m four-year funding package to enable local communities
across Scotland to invest in new or improved sports facilities. Ministers hope
the 2014 Commonwealth Games in Glasgow will inspire more Scots to take up
sports.
