EU Procurement law Vs. My taxes.

I received today an e-mail inviting me to attend a seminar on EU Procurement law. There have been rather a lot of seminars on this subject lately, but this one was going for an attention-grabber:

“The EU procurement rules are fraught with difficulty.

You are required to navigate between the black letter of the law and the commercial reality of putting together a procurement.

To manage the risk effectively you need rock-solid advice on what you can and can't do.”

It went on to list a number of the hurdles and complicated rules that can make a public sector contracting exercise something of a minefield, from when you can and cannot speak to suppliers during the process, when a framework is anti-competitive and thus non-compliant, and so on and so forth.

Normally these things get the ‘delete’ treatment without any further ado; however this framed the problem faced by contracts teams within the Public Sector very succinctly. Basically, there are so many pitfalls, red tape and ridiculous levels of bureaucracy designed at making the process as ‘fair’, ‘open’, ‘transparent’, ‘non-discriminatory’, etc, etc. as possible that it becomes an uphill struggle before you even get started.

I’m not saying that any of these goals are a bad thing. On the contrary, they are wonderful principles of a free market. Public money should be accountable, and we should not be awarding the contract to someone who isn’t going to offer the best value for money.

It’s also fucking difficult to argue against the rules. They make irritating sense to a free-marketeer. If followed, they stop protectionist policies and are intended to prevent sharp practice, all good things. In fact, you can’t even say that a public body should be able to spend its money in the local economy, because the whole point of the rules is that the best response to your tender will win the business.

In other words, if local suppliers want to win the business, then they need to up their game and improve. It also means that there should be no barrier to those local suppliers winning business elsewhere in Europe, if they decide to do so. Great, in theory.

So, does that mean I’m happy that my tax money is going to line a German, or Spanish company’s offers? Well the flipside is that their tax money could well be lining those of a British company, so you could argue that it will all come out in the wash.

What I’m trying to make clear here is that the spirit of the EU Procurement rules is something I agree with. My issue is more whether or not the sheer cost of implementing the laws, enforcing them, and even writing the damned things is actually delivering us any value for money, or if in fact is costing governments – and therefore you and me as the taxpayer – a huge amount of money that could be better off back in my pocket.

It also means that the UK Government can’t say to contracting authorities (basically a body spending public cash) that they should source locally and support the British economy. It has no say over where that public money will end up. Of course I should be happy that the most economically advantageous tender will win, therefore saving the taxpayer money. It’s very easy to end up in a circular argument on this.

When the House of Commons commissioned the construction of new offices for MPs, what was to become Portcullis House, the contract for the windows went to a British firm. The problem was that a French-owned firm, Harmon, had submitted the most economically advantageous bid. Someone at the House had decided we should buy British. Harmon challenged this under a breach of the EU Procurement rules and were awarded damages in court for £1.85m. There were other aspects they could also sue for, however the House of Commons settled out of court for an unspecified fee. So the taxpayer paid for the windows twice over, maybe more. Now, can you spell colossal waste of my fucking money?

Fine, you say, live within the rules. I question not the spirit of the rules, let me re-iterate that. What I do believe in is choice. The same choice afforded to the private sector, which has far more freedom to make decisions on where it spends its money. What I question is why that accountability seems to lie with Europe, and not with the UK taxpayer. Why the fuck are some overpaid bunch of bureaucrats allowed to tell our public sector that it can’t support local businesses if it chooses to do so? It may not be the right choice, but the point is that the public sector in the UK should be responsible to the UK taxpayer, not to fucking eurocrats.

I fail to see why we need another layer of bureaucracy on top of our own, trying to tell us what we can and can’t do – private or public sector. Big government is not a good thing. More big government above a big government is worse. We have enough crap from our own politicians, we really don’t need to be subsidising eurocrats as well, and we really don’t need more layers of red tape, processes and procedures that cost the taxpayer even more money.