Public Services (Social Enterprise and Social Value) Bill

Debate between Sam Gyimah and Ben Gummer

Friday 19th November 2010 Commons Chamber

[Mr Gyimah]

I agree that there are local businesses that fulfil a social good, but we do not want people just to decide, “You know what, I want to set up a business, and because 20% of it is for servicing the local authority, I will be supported.” I strongly believe that we must draw a distinction between for-profit businesses whose main purpose is rewarding shareholders and businesses that are delivering social goods.

[Ben Gummer]

My hon. Friend is drawing two distinctions. One of them is between local and national, and the other is between for-profit and not-for-profit organisations. The latter are distinct, but in terms of the distinction between local and national, surely we should be looking to allow small businesses to win tenders for all Government contracts no matter where they come from? That involves making procurement decisions much easier for small businesses. Different issues are involved in allowing voluntary groups and those giving human capital for free an opportunity to tender for contracts. That is about enshrining localism within procurement contracts.

[Mr Gyimah]

I certainly think we should allow charitable enterprises to tender for contracts and deliver services, rather than see this as a way for for-profit businesses to service government.