§ Mr. WigginTo ask the Secretary of State for Trade and Industry what plans she has to modify the public procurement policy so public bodies have to buy local fresh food; what recent representations she has had on this subject; and if she will make a statement. [69016]
§ Mr. Morley[holding answer 10 July 2002]I have been asked to reply.
The Government's public procurement policy requires all purchases of goods and services to be based on value for money, having due regard to propriety and regularity. Value for money is defined as "the optimum combination of whole life cost and quality (or fitness for purpose) to meet the customer's requirement". Public bodies are also required to comply with the EC Treaty, the EC procurement directives and the UK Regulations that implement them. These are designed to ensure that public procurement is fair, transparent and not used to discriminate by setting up barriers to free trade. Member States reached political agreement on a revised public procurement directive at the Internal Market Council on 21 May. This revised directive maintains the principles set out above.
This policy and legal framework for public procurement not only secures value for money for the taxpayer but also helps to improve the competitiveness of, and opportunities for, our suppliers. It does not, however, permit public sector buyers to restrict their purchases to specific locations or suppliers.
However, it is permitted to specify requirements that might provide the opportunity for local suppliers to make use of their proximity to customers. For example, a requirement for frequent delivery of fresh food would be acceptable provided it was reasonable and not contrived to create an artificial barrier to free trade. In principle a foreign supplier is not denied an opportunity to compete on equal terms by, for example, setting up an operation in Britain. Public bodies can also ensure that their contract specifications do not discriminate against local suppliers. For example, requiring the supply of mangetout throughout the year would necessitate purchases from overseas and deny local suppliers an opportunity to compete. To avoid such difficulties for local suppliers the buying authority can require seasonal vegetables instead.
Issues relating to public procurement policy have also been raised by several respondents, including the organic sector, to the Department's Sustainable Food and Farming Working Together consultation paper. These are also under consideration.