Commons Sense

House of Commons · Ministers' Questions

Public Sector Procurement: SMEs

Thursday 14 July 2022 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • The Procurement Bill aims to simplify and make procurement processes more flexible, increasing transparency and ensuring 30-day prompt payment terms throughout the supply chain.
  • The Government seeks to achieve best value for money for taxpayers through overarching contracts that are at the best price available.
  • It is possible for smaller companies to be part of the procurement process and participate in overarching contracts.

Topics (select to filter)

Questions & Answers

Q1 Mark Pawsey Con
Business & Trade

Question

What steps his Department is taking to strengthen public sector procurement rules for small and medium-sized enterprises.

Answer from Jacob Rees-Mogg

The Procurement Bill will enable simpler, more flexible procurement processes, increase transparency of planned procurements and ensure that 30-day prompt payment terms flow down the supply chain. This will provide small businesses, especially start-ups, with the time and assurance they need to bid for opportunities.

Answered
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Q2 Mark Pawsey Con
Transport Business & Trade
Context

A constituent is a driver who suffers from cataracts and requires yearly eye tests but has been advised that an exclusive contract prevents local independent opticians from conducting these tests due to EU procurement rules.

Question

My constituent is a driver who has suffered from cataracts and is required to take yearly eye tests. He would like those tests to be carried out by his local independent optician, but has been advised that a single provider holds an exclusive contract. I raised the matter with Ministers in the Department for Transport, who have told me that the situation arises because the Government are obliged to offer an exclusive contract because of EU procurement rules. Will the Procurement Bill enable smaller, independent businesses to conduct such tests and promote competition?

Answer from Jacob Rees-Mogg

My hon. Friend raises an important point—that the Government, to achieve best value for money for taxpayers, will ensure that there are overarching contracts that are at the best price available. He then asks whether it will be possible for smaller companies to be part of that. It will be possible and easier for them to be part of the supply chain, but value for money must remain. In the specific case he raises, were Specsavers to carry on being much cheaper than using individual providers, I expect the Department for Transport would—and would be expected to—go down that route. If, on the other hand, competitive prices could be offered by smaller companies, it would be easier under the Procurement Bill for them to get into the process.

Partly answered

Not addressed: The specific case of allowing independent opticians to conduct eye tests due to the current exclusive contract situation was not directly addressed.

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