Public Procurement

House of Lords written question – answered at on 12 October 2011.

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Photo of Lord Chidgey Lord Chidgey Liberal Democrat

To ask Her Majesty's Government, when assessing tenders from companies overseas for public works contracts in the United Kingdom, what consideration they give to (a) the impact on unemployment and consequent social security costs, (b) the impact on tax revenues, VAT receipts, and corporation and other taxes, and (c) the impact on balance of trade statistics; and which department is responsible for assessing each factor and deciding which tender is most in the national interest.

Photo of Lord Wallace of Saltaire Lord Wallace of Saltaire Lords Spokesperson (Cabinet Office), Lord in Waiting (HM Household) (Whip)

When assessing value for money, public sector procurers are required to use criteria linked to the subject matter of the specific contract.

The matters referenced in the Question cannot be taken into account at tender evaluation stage as they do not relate to the subject matter of the contract.

However, there is currently a review of public procurement under way, which is examining UK application of EU procurement rules. The review will consider any actions the Government need to take to help ensure that UK businesses can compete for government work on an equal footing with their competitors.

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