Public Purchasing Policy (Hansard, 28 April 1980)

§ 13. Mr. Lee
asked the Secretary of State for Industry what is the status of the current review of public purchasing policy.

§ Mr. Michael Marshall
As announced by my right hon. Friend the Prime Minister on 28 February we intend to use the policy on public sector purchasing and research and development to help improve industry's performance.

§ Mr. Lee
Does that review include consideration of how small firms might be helped by public purchasing policy?

§ Mr. Marshall
Yes, I can confirm that in the review we are looking at small businesses, along with other businesses. I emphasise that this is a continuing review. It is not something that terminates. It goes on.

§ Mr. Gordon Wilson
Will the Minister also consider the role of public sector ordering in dealing with unemployment in areas where the rate is very high? Will he consider, in particular, the possibility of advance orders for ships in the public sector, particularly for the Robb Caledon shipyard in my constituency, which is in danger of closure unless help is given by the Government?

§ Mr. Marshall
I understand the hon. Gentleman's point. I can only say to him that at present all concerned are fully aware of the implications behind this question. Speaking specifically of defence, I have had the opportunity of travelling around the country with my hon. Friends the Defence Ministers and looking at a range of issues. Wherever help can be given, it will of course, be provided.

§ Mr. Dykes
Despite the adherence to absolute non-intervention—which in the modern world is sometimes difficult— will my hon. Friend take up again the question of the Inland Revenue placing with the British computer industry, rather than with overseas industry, the order for what will, I believe, be the largest-ever single computer order when new systems come to be ordered in a year or two?

§ Mr. Marshall
No decision has yet been taken on that matter, but I certainly take note of what my hon. Friend has said.

§ Mr. Robert C. Brown
I was interested to hear the Minister say that he had had a look around the country with his Defence Department colleagues. Did his visit take him to the Vickers Elswick plant, where in two weeks' time 350 redundancies are to take effect. In this context the Minister has complete control of public purchasing and he could avert these redundancies—the first of 1,600 if he so wishes.

§ Mr. Marshall
I have not had an opportunity to visit Vickers, though I hope that an opportunity to do so will present itself. In the meantime, as the hon. Gentleman is well aware, part of the problem there arises directly from the Iranian situation. Some of the problems have arisen in an unexpected and unfortunate way for British industry.

§ Mr. Emery
Will my hon. Friend bear in mind, however, the problems that he can create for Government Departments when they refuse to take the best buy by not taking into account the aspects of delivery, quality, reliability of spare parts and the standing of the firm? These aspects are of the greatest importance and if my hon. Friend moves from those it will be a direct subsidy, which may well be to the detriment of British industry rather than to its benefit.

§ Mr. Marshall
My hon. Friend has put the matter into perspective. These facts must be borne in mind. What I have said in no way rules out what he has put forward, and I agree with him.