Press Release
8 December 2004

LOCAL BUSINESSES MUST COMPETE FOR PUBLIC CONTRACTS SAYS ECONOMIC FORUM

Local small and medium sized businesses must gear up to compete for a greater share of the £1.8bn available in public procurement contracts.  That was the key message at today’s meeting of the Economic Development Forum, held at Queen’s University, Belfast.

The Forum heard from Government’s Central Procurement Directorate which oversees the allocation of over £1.8bn every year in government contracts.

Economy Minister and Chair of the Forum, Barry Gardiner MP, said, “Public procurement is big business for Northern Ireland.  Whatever the business of an SME, there are likely to be markets within the public sector in which it can compete.  Central Procurement Directorate has made it clear it is determined to work with local businesses to reduce barriers to accessing valuable public sector contracts.

“But local businesses need to be geared up to win these contracts and must think innovatively about how best to compete.  They should look for ways to collaborate and form consortiums to increase the chances of success and ensure that the benefits are retained within the local economy.”

“In sectors such as construction, but also in other areas, it is essential that we enhance our capacity to deliver strategic investments, consistent with government policies on procurement, targeting social need and equality.

Forum members also discussed the draft Economic Vision for Northern Ireland.  Thanking members for their participation in developing the draft vision the Minister said: “The draft economic vision paper outlines the clear objective to make Northern Ireland one of the most competitive and productive UK and international regions.  It puts the economy at the heart of Northern Ireland’s future, through greater wealth creation and better employment opportunities for all.

“The realisation of this vision will depend on significant collaboration between government, the business, academic and voluntary sectors, the trade unions and the local political parties.

The Bank of England’s agent in Northern Ireland, Phil Eckersley, joined members to explore local business conditions and exchange views on the economic outlook.

Michael Maguire, Chairman of the Institute of Directors and a member of the Forum said, “The Northern Ireland economy faces many challenges.  Some of these, for example our land border with ROI, are unique to the region, but others, such as the decline in manufacturing, are common to other regions.  The Forum’s primary purpose is to grapple with all of these issues and explore, in partnership, the priorities and action needed to secure future economic success.   That was the focus of all the issues debated by members today.”

Notes TO Editors