GRAHAM WELCOMES KEY REPORT ON ANEURIN BEVAN HEALTH BOARD PROCUREMENT PRACTICES

13^th July 2011  

Speaking at the launch of a Cardiff University report analysing the procurement practices of the Aneurin Bevan Health Board at the National Assembly today, William Graham AM said: 

“This report is particularly important considering the paucity of evidence on the wider economic effects of Welsh public procurement. The Aneurin Bevan Health Board Health Board supports some £1.7 billion of economic activity in Wales, and nearly 20,000 jobs and around £0.73 billion of gross value added. In the current economic climate public bodies such as the Health Board should look to procure goods and services from their local area wherever possible. This report recognises that ‘even small levels of import displacement in selected niches of sectors such as engineering, equipment and chemicals, could have important effects in terms of the support of good quality employment in South Wales East’.” 

The Shadow Minister for Local Government continued: 

“While the Welsh Government has recognised that the South Wales East region’s low activity in higher value business is a major limiting factor on the region’s economic development, this valuable report highlights that public procurement is a potential means to strengthen Gwent businesses in sectors such as computing services or high-end manufacturing. This would be particularly important at a time when private companies have considerably reduced their spending in these areas in the wake of the recession.” 

“While there are inevitable constraints on the amount of goods and services that can be procured locally, this report makes clear that well directed public spending by the Health Board can play a part in re-invigorating small and medium sized businesses throughout Gwent, and could catalyse the development of future industries in the region.’ 

ENDS 

‘The Economic Impact of NHS Procurement: A Study of the Aneurin Bevan Health Board’ was  produced by the Welsh Economy Research Unit for the Joint Scrutiny Project Board of Caerphilly County Borough Council and Newport City Council. 

William Graham AM