More Welsh companies are winning public sector contracts in Wales thanks to action being taken by the Welsh Government to simplify the procurement process, according to Finance Minister Jane Hutt.

Every year, the Welsh public sector spends around £4.3bn procuring goods and services.

The Wales Procurement Policy Statement, launched in December 2012, aims to ensure that every pound spent delivers efficiencies as well as economic, social and environmental benefits – such as local jobs, training opportunities and supply chain opportunities for local firms.

The Minister said that Welsh contractors now win 75 per cent of all major construction awards through sell2wales – compared to around 30 per cent in 2010-11.

She said that of the first completed 27 projects incorporating community benefits, worth an overall value of £346m, 84 per cent of this expenditure has been re-invested in Wales with 517 disadvantaged people receiving 13,020 weeks of training and an all-Wales collaborative procurement has delivered more than £130m of efficiencies over the last five years.

The Minister also revealed that the UK Government has recognised the Welsh Government’s procurement policy is ahead of the legislative measures which were proposed through the Lord Young Review in October 2013 to improve SME access to procurement.

Consequently, the new legislation, which would have been a backward step for Wales, will not now apply to Wales.

Jane Hutt said: “We are making real progress in driving forward public procurement policy as a strategic tool to support growth and jobs in Wales.

“I am committed to ensuring that public sector contracts are open and accessible for all suppliers. I’m delighted to see that our innovative policies, designed in consultation with businesses and public sector stakeholders, have opened the doors for smaller, local suppliers.

“I have seen at first hand some excellent examples of where public bodies across Wales have embraced our progressive community benefits policy, which is integral to the Tackling Poverty Action Plan. This is making a positive difference for the people and communities of Wales."

She said: “The new EU Procurement Directives are due to be transposed towards the end of this year and I am determined to maximise the opportunities they will offer to strengthen the application of Welsh procurement policy.”

“Through collective effort, clear goals and strong leadership, procurement is being transformed from a ‘function’ to a strategic, intelligent lever which can have a positive and lasting impact on jobs, economic growth and the lives of people across Wales.”