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Independence doubts curb National Procurement Service

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Forecasts savings were over-optimistic: Nick Ramsay

ALTHOUGH spend through the National Procurement Service (NPS) is increasing, it has not developed as quickly as expected resulting in concerns over its funding and less than anticipated savings

A report from the Wales Audit Office has also suggested that some public bodies think the NPS is too close to the Welsh Government.

Public bodies spent £234 million through the NPS in 2016-17, but this was well short of previous estimates, a report by the Auditor General for Wales has said.

Although spend through its procurement arrangements has increased year-on-year since its inception in 2013, public bodies are not using the NPS as much as anticipated. Of the £234 million spent through NPS in 2016-17, the 73 member organisations spent £222 million. NPS’s 2015 business plan had targeted a figure of £2.2 billion.

Until the end of 2015-16, a £5.9 million Welsh Government ‘Invest-to Save’ loan covered most of NPS’s operating costs. The Welsh Government expected that NPS would then start repaying the loan from surplus income generated by a supplier rebate. However, the rebate generated only £0.9 million in 2016-17 compared with operating costs of £2.8 million. Although there are signs of income increasing in 2017-18, NPS is still not expecting to cover its costs. The Welsh Government has used its reserves to meet the shortfall.

As at August 2017, NPS has reported savings for public bodies of £14.8 million for 2016-17 as well as wider benefits to the economy such as job creation and direct spend with Welsh suppliers. While the reported savings have increased year-on-year, the figures have been substantially lower than some early estimates.

The report also found that some public bodies have been concerned that the NPS is not sufficiently independent from the Welsh Government and that its focus is towards national issues rather than local priorities.

The report makes five recommendations on issues including:

  • identifying why public bodies are not using NPS as much as anticipated;
  • clarifying the process for members opting-out of using NPS procurement arrangements; and
  • agreeing a sustainable funding mechanism for the NPS.

Huw Vaughan Thomas said today “There is still broad in-principle support for the NPS, but it is vital that public bodies have confidence in it and it is clear that previous expectations about the growth of the NPS are a long way from being met. The NPS needs to do more to identify and address the reasons why public bodies choose not to use its procurement arrangements and to convince public bodies of the benefits.”

The Chair of the National Assembly’s Public Accounts Committee, Nick Ramsay AM, said: “The National Procurement Service (NPS) has an important role to play in getting a better deal for public bodies for their goods and services and in delivering the Welsh Government’s wider procurement policy objectives.

“The Auditor General’s report makes clear that the NPS is falling well short of what appears in hindsight to have been over-optimistic expectations about the amount of public spending that it would be able to influence, at least in its early years.

“The report raises some broader questions about public bodies’ commitment to collaborative purchasing and about the balance between national and local priorities, and the overall governance of the NPS.

“The Committee will be considering this report about the NPS alongside the Auditor General’s wider report on Public Procurement in Wales, published last month.”

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Ben Lake MP “disappointed” after Agriculture Bill amendment on the standard of food and agricultural imports is rejected by House of Commons

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The UK’s new Agriculture Bill was put before MPs on Wednesday (13 May) for the final time as it reached the Report Stage and Third Reading.

Alongside farming unions and campaign groups, Ben Lake MP has lobbied for the Bill to include a number of important amendments. One of the amendments sought to introduce a legal requirement that agricultural or food products imported into the UK under future trade agreements would need to be produced or processed according to equivalent animal health, welfare and environmental standards as those required of UK prodcuers.

This amendment, in the form of New Clause 2, and which was tabled by the Chair of the Environment, Food and Rural Affairs Committee Neil Parish MP, was rejected by the Commons. All Plaid Cymru MPs supported the amendment and Ben Lake MP said he was “disappointed” that the house did not vote in favour of an amendment to prevent the importation of products produced to lower animal health and environmental standards, and which in turn would have supported the high standards of Welsh produce.

Ben Lake MP said:

“Without this amendment there remains no legal requirement for future UK trade agreements to ensure that any agricultural or food imports are produced to the same standards as those required of domestic producers.

“Farmers in Wales strive to produce quality food in a sustainable manner, but the failure to include this amendment to the Agriculture Bill risks undermining these efforts by keeping the door open to imports produced to lower environmental and animal welfare standards.

“I have always argued that in order to protect our own high standards it is crucial that a level playing-field is maintained in relation to imports, and that farmers in Wales are not put at a disadvantage by having to compete with imports that are produced to lower standards. I sincerely hope that this amendment will be adopted by the House of Lords, so that the House of Commons has another opportunity to support it.”

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£1 billion deal for ‘Shared Rural Network’ to improve mobile coverage goes ahead

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Ceredigion MP, Ben Lake says he is delighted that a scheme to extend mobile coverage in hard-to-reach rural areas making poor mobile phone coverage a thing of the past has been given the green light, thanks to a major new deal between the Government and UK mobile network operators.

The ‘Shared Rural Network’ will mean that high quality 4G coverage will be available for 95 percent of the UK by 2026 which means consumers will get good 4G signal wherever they live, work or travel. The new plans involves four operators (EE, O2, Three and Vodafone) joining forces to create a new organisation to deliver the ‘Shared Rural Network’. Each will be able to make the maximum use out of existing and new phone masts by being able to host their own equipment on them allowing their customers to access a mobile signal. The scheme will cost more than £1billion made up of £530m from the mobile operators and a £500m investment from the Government.

Ben Lake MP, who was one of 78 cross-party MPs who wrote to the Secretary of State for Digital Culture, Media and Sport last year to ask for government support for the scheme, said:

“This is really good news for my constituents. Better mobile connectivity will make flexible working, access to education and leisure opportunities easier. It will boost regional economic growth and begin to close the digital divide that exists across the country. The mobile has become an essential tool for most of us. It will certainly come as a relief to many people living in my constituency who are frustrated by the persistent ‘not spots’ which prevent them from carrying out many tasks which other people take for granted”.

The ’Shared Rural Network’ will eliminate the substantial majority of the country’s partial not-spots with the added benefit of increasing competition for mobile services, especially in rural areas; deliver on the Government’s 95% coverage manifesto commitment to extend coverage across the country; improve road coverage by reaching a further 16,000 kilometres of roads; involve minimum environmental impact and reduce the need for duplicate infrastructure and ensure that the UK has one of, if not the best, mobile coverage in Europe.

The initiative, which is a world first, follows government proposals for an overhaul of planning rules and is part of the Prime Minister’s plan to level up the country with world-class digital infrastructure across the UK to make sure homes and businesses are better connected.

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Elin Jones welcomes speed reduction, but says it should be even lower

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Following a meeting and correspondence with the Welsh Government, Elin Jones AM has welcomed the confirmation of an initial reduction in the speed on the A487 between Bow Street and Aberystwyth.

This stretch of the A487 is particularly dangerous, and there were two fatal accidents there last year.

Ken Skates, the Welsh Government Minister for Economy and Transport, confirmed to Elin Jones via letter that the route between Waun Fawr to 300m beyond Dorglwyd Junction will be reduced to 50mph, with work taking place in the next financial year.

The reduction to 50mph has been initially welcomed by Elin Jones, however she has called for the speed limit to be reduced further to 40mph.

Elin Jones said:

“The need for a review of the safety on the A487 is clear, particularly following the two tragic accidents that took place last year. I was pleased to be able to discuss the issue directly with the Welsh Government Minister in Bow Street recently, and for him to see for himself why a speed reduction was needed.

“I’m also pleased that this has resulted in the safety and speed limit review concluding that a reduction was necessary.

“However, I and many constituents who regularly use this route feel that the speed limit could be reduced further to 40mph, which I will raise again with the Minister.

“I will also continue to call for upgrading safety at the Dorglwyd junction. There are also many areas on the A487 where safety can be improved, either with a speed limit reduction, or by providing cycle lanes and footpaths to remove pedestrians and cyclists from danger. I have called on the Welsh Government to consider all options.”

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