HC Deb 01 March 2002 vol 380 c1584W
Mrs. Curtis-Thomas

To ask the Secretary of State for Trade and Industry what assessment she has made of the contribution small construction companies provide to(a) Government departments and (b) the economy as a whole. [38687]

Mr Wilson

[holding answer 28 February 2002]:

(a) Government Departments

Data on the contribution of small construction companies to Government Departments are not held centrally.

(b) the economy as a whole

In 2000 small construction companies were responsible for £36.8 billion of construction (£30.7 billion in 1995 prices). This represents about 2¾ percent. of GDP. Figures for 2001 are yet to be published.

Mrs. Curtis-Thomas

To ask the Secretary of State for Trade and Industry what assessment she has made of(a) the economic benefits of procuring from smaller firms and (b) the improved value for money to be achieved by increasing competition in construction projects (i) within Government Departments and (ii) outside. [38686]

Mr. Wilson

[holding answer 28 February 2002]: The Government have made no assessment of either

(a) the economic benefits of procuring from smaller firms or

(b) the improved value for money to be achieved by increasing competition in construction projects within Government Departments.

Over the past year the Office of Government Commerce (OGC) has undertaken research to identify the barriers to effective competition in the Government marketplace. Part of this research looked at the issues facing small firms, but not specifically in the construction sector. OGC and the Small Business Service carried out this work jointly. A range of public sector organisations were asked for their views on the impact of their procurement strategy and practice on small firms. The organisations highlighted the potential benefits of dealing with small firms: they can often bring innovation, responsiveness, flexibility and quality of service to Government work. These are all important elements of value for money.