To ask the Minister of Finance and Personnel how he intends to reform the procurement process to make it easier for small and medium sized businesses to bid for government contracts.

A key focus of the Procurement Board for Northern Ireland, which I chair, has been to make it easier for small and medium size businesses to bid for public sector contracts by simplifying procurement processes and making them less bureaucratic. Much of this work has been taken forward in consultation with the construction industry and business sector representatives.

Actions taken include:

advertising all government contracts over £30,000 on a single portal;

breaking larger contracts into lots to bring them within the scope of smaller businesses;

simplifying procurement processes resulting in reduced bidding costs;

requiring contracts which are over the value of the EU threshold to have a procurement strategy which includes engagement with the supply base;

reducing liability and insurance requirements by making them proportionate to the risks associated with the contracts; and

encouraging the advertisement of subcontracting opportunities.

The levels of small business and local business participation in the delivery of public contracts in Northern Ireland compares very well with the other devolved UK Administrations and is well above the levels achieved in England. For example:

80% of all contracts awarded by departments, agencies and non departmental public bodies in 2011/2012 were awarded to SMEs. 75% of these contracts went to businesses with fewer than 50 employees. In the construction sector 93% of contracts were awarded to SMEs.

79% of all contracts awarded in 2011/2012 went to companies based in Northern Ireland. Within the construction sector some 96% of contracts went to local businesses.

The work to improve procurement processes continues. A key priority is to ensure that Northern Ireland takes maximum advantage of the additional freedoms provided by the new EU procurement Directives to be adopted in the near future.

We continue to work closely with business organisations and a procurement conference to be held later this month will highlight improvements to the procurement process resulting from work carried out in conjunction with CBI.