Mr. Ian Talbot:

The whole issue of procurement has been difficult and small businesses are concerned that they are being excluded from much public sector procurement through a combination of the Office of Government Procurement, the need to find cost savings in the procurement process and other factors. We must not throw the baby out with the bathwater by simply seeking the lowest price in the drive for efficient public procurement, regardless of quality. The impact on local businesses can be serious when they can no longer do work they had done previously for local authorities and schools. Too much goes into central contracts or is channelled to bigger suppliers outside the country. There may be too much focus on price in the tendering process. When considering the most economically advantageous tender, MEAT, the additional costs to the economy of procuring goods and services outside the country must be considered.