§ 7. Jim Sheridan (West Renfrewshire) (Lab)If she will make a statement on how public procurement affects productivity and innovation in the UK's manufacturing sector. [182684]
§ The Secretary of State for Trade and Industry (Ms Patricia Hewitt)The Government spend £109 billion a year on goods and services, which can be a powerful incentive to businesses to develop new products, processes and services. That is why I have brought together industry leaders and trade unions, to ensure, with the Government, that innovation is in fact supported and encouraged by the procurement system.
§ Jim SheridanI thank my right hon. Friend for that response. Does she agree that, in terms of the £109 billion procurement budget, a successful strategy to support manufacturing must make full use of both EU and international law? Does she also agree that the basis for the award of the procurement contracts should not just be the cheapest option, but should take into account the benefits to the British taxpayer, British industry and, most important, British workers?
§ Ms HewittI entirely agree with my hon. Friend that instead of looking at the cheapest price the criterion has to be, as it is, best value for money. We shall not abandon competition in public procurement, because it delivers best value to the taxpayer and the best result for public services, but I agree that the ideal outcome is to get best value for money and to have the goods made in Britain. That is why we are bringing together manufacturing industry and the Ministers and officials who make procurement decisions. That is why we are backing British manufacturing.
§ Mr. David Kidney (Stafford) (Lab)There is a growing manufacturing industry in this country in terms of renewable energy. Can my right hon. Friend do anything to encourage the use of renewable energy in public buildings for their heat and power supplies?
§ Ms HewittMy hon. Friend raises an extremely important point. As I think he knows, we have put renewable energy, along with energy efficiency, at the heart of the new energy policy. We are investing substantially in the renewables sector and we are of course encouraging and, in some cases, requiring the public sector to improve its energy efficiency and thus to make more use of renewables.