Business: Procurement

Department for Business, Innovation and Skills written question – answered at on 7 January 2015.

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Photo of Steven Baker Steven Baker Conservative, Wycombe

To ask the Secretary of State for Business, Innovation and Skills, what estimate he has made of the costs to small and medium-sized businesses of the practice whereby companies require a supplier company to make a payment in order to join or to remain on that company's list of suppliers.

Photo of Matthew Hancock Matthew Hancock Minister of State (Department for Business, Innovation and Skills), Minister of State for Portsmouth, The Minister of State, Department of Energy and Climate Change

The Department is aware that the practice of suppliers having to pay to join or remain on a supplier list is an issue in some sectors. As a result, the Government has already taken action to prohibit this practice in certain sectors.

We are currently consulting to understand the prevalence and impact of this practice economy wide. The consultation will strengthen the evidence we have on supplier lists, and will allow us to understand the necessary scope, and implications of further changes. This will ensure that any action is appropriately targeted and achieves real change on the ground.

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