Hewitt Shredding EU Procurement Rules

10.21.47am BST (GMT +0100) Thu 11th Sep 2003

Vincent Cable MP, Liberal Democrat Shadow DTI Secretary

Vincent Cable MP, Liberal Democrat Shadow DTI Secretary, today launched a scathing attack on Patricia Hewitt over her plans to introduce restrictions on the awarding of government contracts. The Trade secretary is proposing that "value for money" should not be the dominant criteria, but that the effect of awarding contracts to overseas contractors on the British economy should be given equal weight.

Dr. Cable said: "This is crude and dangerous populism - nothing more than an attempt to pander to the more reactionary interest in the trade union movement."

"What Patricia Hewitt is proposing could be very costly. The logical outcome of her stance is that uneconomic contracts are awarded and either public spending will need to be cut, or taxes will need to be raised."

"There are clear rules at EU and, prospectively, at a Global level which ensure competitive and transparent public sector procurement. The Trade Secretary is proposing to rip these rules to shreds."

ENDS

Notes to editors:

The Financial Times today reported that 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.