§ Mr. Welshasked the Secretary of State for Industry what steps he has taken to encourage more subcontracting to small firms by large companies receiving Government or nationalised industry contracts; and if he intends to legislate or take any other action in this regard.
§ Mr. Les HuckfieldGovernment Departments are required to follow the practice of obtaining best value for money in their purchasing policies. Procurement policy in the nationalised industries is a matter for their commercial judgment. I have, however, no evidence to suggest that small firms do not achieve a reasonable share of subcontracts relating to Government contracts. Government policy is to ensure that small firms are not hindered by lack of knowledge in obtaining Government contracts direct and the Small Firms Service will in the near future be issuing a booklet on this subject to help small firms.