Government: Procurement

Lord Haskel Excerpts

Monday 25th June 2012 Lords Chamber

Asked By

[Lord Haskel]

To ask Her Majesty’s Government what steps they are taking to encourage the use of new technology in the United Kingdom through Government procurement.

[Baroness Verma]

My Lords, the Government are removing procurement barriers facing innovative companies and SMEs and creating an environment in which they can thrive. We are investing more in the small business research initiative, creating a level playing field for open-source solutions and making the procurement process as a whole faster and simpler. In particular, the G-Cloud framework provides a simple, fast and transparent route into government for the suppliers of new technologies.

[Lord Haskel]

My Lords, those aspirations are all very well but are the incentives in place for public-sector buyers to carry them out? The Office of Government Commerce tells me that there are 40,000 points of procurement. Why should it take the risk of an innovation failing? After all, it is more likely to get a pat on the back for saving money in these circumstances than for encouraging innovation. How will the Government change this culture?

[Baroness Verma]

My Lords, I am disappointed at the noble Lord’s cynicism. Since we took office, central government’s direct spend with small companies—particularly the SME sector, which the noble Lord is interested in—has doubled from £3 billion to £6 billion. We are achieving this by publishing tenders and contracts through the contracts finder website which eliminates many of the difficulties that small and medium-sized businesses were facing. The noble Lord should be aware that more people can access information online now than could previously.