§ 4. Mr. Meadowcroftasked the Chancellor of the Exchequer, in respect of public procurement policy, what evidence has been made available to him about the influence on suppliers' prices of bulk buying by public bodies.
§ The Chief Secretary to the Treasury (Mr. Peter Rees)The matter was covered in the report on Government purchasing submitted to the Prime Minister last December.
§ Mr. MeadowcroftHas the Chief Secretary considered the problem, especially for new and small businesses, of public bodies combining too much, thus being able to dictate prices in the market so much that it becomes a corporate state and small businesses are unable properly to compete in a fair market?
§ Mr. ReesI do not think that there is any evidence that we are moving towards a corporate state under this Government. It is not for me to speculate about what might happen under other Administrations. It is the Government's policy to improve small firms' access to Government contracts.
§ Mr. EggarShould there not at the least be a duty on each Department of State to report to the House the percentage of public procurement that has been purchased from small firms?
§ Mr. ReesI am aware of American precedents on this matter, but I should like to reflect on the additional administrative costs incurred by Departments. I am sure that the House and my hon. Friend are keen that administration costs should be kept as low as possible.