§ 24. Mr. Simon Hughesasked the Secretary of State for Trade and Industry what assessment he has made of the effect of public purchasing policy on the efficient operation of market forces.
§ Mr. FletcherThe Government's policy is that contracts should be let as the result of competition wherever possible so that the opportunities presented by public sector business are open to a wide range of potential suppliers. The Treasury guidelines encourage an effective dialogue between purchasers and suppliers so that decision-taking on both sides is better informed; and the use of performance specifications rather than detailed designs so that suppliers can offer alternative solutions which take into account the potential for sales in other markets. Steps have been taken to improve small firms' access to Government contracts. In these ways public purchasing policy contributes to the efficient operation of market forces and obtains better value for money. The Cabinet Office (MPO) report on "Government Purchasing", published in December 1984, makes a number of recommendations to strengthen the application of policy in these respects.