Support for contract law proposals requested

Published on Monday 20 February 2012 01:46

THE Infrastructure Secretary has called on UK and European leaders to back Scottish Government proposals to make changes to public contract laws.

Alex Neil wants public bodies to be allowed to take account of the likely economic impact on communities when awarding contracts. The call comes as the Scottish Government prepares to introduce its Sustainable Procurement Bill.

Under the current European laws, contracts cannot be awarded on the basis of where a company is based, or the economic benefits that the contractor might bring to the local area.

Mr Neil said: “Although we are doing all we can in Scotland to help firms find and win public contracts, we want the flexibility to take economic impact into account when awarding contracts.

“Our hands are currently tied by EU law, which stops us helping more Scottish firms secure valuable work.

“In May, we will introduce our own Sustainable Procurement Bill, which will support the greater use of social and environmental benefit clauses. In this challenging economic period it is essential that procurement is used as a lever of economic growth.”

He said: “If she had procured the contract for the Forth Crossing in the way she wants, it wouldn’t just be contractors but the European Commission that would be dragging her into court – just as Denmark was when it tried to specify that contracts for the Storebaelt Bridge must use Danish products.”

Earlier this month Mr Neil called on the UK government to ensure Scotland was not left behind during any superfast broadband roll-out. He urged Westminster to ensure mobile 3G “not spots”, areas of no connectivity, are addressed in Scotland.

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