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To: maceng2 who wrote (420)	9/10/2003 2:08:25 AM
From: maceng2	Read Replies (1) \| Respond to of 1417

Hewitt wants contracts to take account of jobs [What a cluster f**k this is all going to be. The government already employs 20% of the workforce...pb] By David Turner and Jean Eaglesham Published: September 9 2003 21:58 \| Last Updated: September 9 2003 21:58 news.ft.com Patricia Hewitt is lobbying for a change in the way the government spends billions of pounds on procurement to take more account of the impact on UK jobs, according to Whitehall officials. The trade and industry secretary wants all central government spending on goods and services, from uniforms to IT, to consider the effects on employment and the UK economy as well as the current dominant criterion of "value for money". This could mean more contracts going to British-based companies and fewer going abroad. But Ms Hewitt's bid is likely to meet opposition from parts of government, as well as free-market economists. The Treasury's stance has been that value for money must be the prime consideration in procurement, although departments are allowed to take other factors into account. One Whitehall insider said: "We shouldn't always get the cheapest possible deal without considering the knock-on effects on the economy." Ms Hewitt's initiative will delight unions if it is successful. Critics of the government's current best value policy on procurement argue that it is too narrow. They point out that a decision to buy abroad can deprive taxpayers of jobs, reducing tax revenues and cancelling the gains made from cheaper procurement. The Ministry of Defence's recent decision to buy the Hawk jet from BAE Systems, a British company, rather than put the bid out to tender, has given heart to those who want a change in buying policy. Kevin Curran, GMB general secretary, said: "We are not asking for any more than other European governments give to their companies. All we want is the government to support and promote British companies to win British contracts." The government spends more than £13bn on procurement a year, according to official figures.