Simplification of EU procurement rules "urgently required", says WLGA

February 1, 2011

Clarification and simplification of EU procurement legislation is “urgently required”, the Welsh Local Government Association has said.

Speaking at a UK local government-EU working summit in Brussels last week, Cllr Chris Holley, WLGA spokesman on Regeneration and Europe, called for reforms including a reassessment of current thresholds and an exemption to state aid rules for local authorities to collaborate.

Cllr Holley, leader of the City & County of Swansea, said greater flexibility in EU procurement and internal market rules was essential at a time of extreme austerity.

“In these difficult economic times, local authorities can no longer only assess EU policy on the basis of whether it is good legislation, but rather on the potential cost to local councils,” he argued.

“Current EU procurement and competition rules are acting as barriers to local government attempts to cut back on costs through increased efficiency and joint working. This includes major regional collaboration initiatives in areas where local authorities have statutory responsibility.”

The WLGA said it welcomed the European Commission’s launch on 27 January of a consultation on public procurement rules. Announcing the move, Brussels pledged to “make life easier” for public authorities and bidders.

Cllr Holley said: “We will be pressing the Commission to recognise that local government simply cannot continue to provide adequate services to local communities in the current economic climate if such restrictive rules are not made more flexible.”

He also warned that some Commission proposals for the coming year were of significant concern to the local level “due to the potential excessive costs they will incur to local authorities at a time when councils just do not have the resources, including proposals on energy conservation in public buildings”.