Business: Procurement

Department for Business, Innovation and Skills written question – answered on 23rd February 2015.

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Photo of Paul Flynn Paul Flynn Labour, Newport West

To ask the Secretary of State for Business, Innovation and Skills, if he will bring forward legislative proposals to ban large firms requiring pay to stay agreements from companies seeking to remain or become their approved 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 can cause significant difficulties. As a result, the Government has already taken action to prohibit this practice in certain circumstances.

Our recent consultation, which closed on 2 February, sought to understand the prevalence and impact of this practice in more detail. We will provide a summary of responses shortly. This consultation will strengthen the evidence we have on supplier lists, and will allow us to understand the necessary scope, and implications of possible further changes. This will ensure that any action is appropriately targeted and achieves real change on the ground.

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