Scottish Minister calls for procurement reform

29 Oct 2010

Source  CPO Agenda
The scope of procurement reform must be extended, Scotland’s deputy first minister told buyers at the purchasing exhibition Procurex Scotland yesterday. Deputy first minister Nicola Sturgeon said procurement was essential to meet Scotland’s budgetary challenges.

Chancellor George Osborne’s spending review revealed that Scotland’s budget will be cut by £1.3 billion in cash terms in 2011-12 compared to 2010-11 - including a fall of £800 million in the capital budget. “No matter how far we have come we also all recognise that in the current climate there is still more work to do. All public sector bodies need to continue to improve their procurement practices. The value that procurement professionals can add to that process should be recognised.

“There have been some real success stories but there are some significant gaps. Procurement hasn’t yet begun to tackle construction and there are potential huge savings to be made there. During the downturn tender prices dropped by 15-20 per cent and that offers savings for public bodies.”Next year capital budgets will fall by a quarter, Sturgeon said, and public sector procurement needed to find new and creative ways to drive down costs.

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