Public Accounts Committee hears evidence from business leaders on Government procurement
Scrutiny
31 January 2025
The Public Accounts Committee heard evidence from representatives of Jersey's Institute of Directors, Construction Council and Chamber of Commerce regarding the Government's procurement procedures on Wednesday afternoon.Among the topics discussed were:
- Government engagement with local business: The PAC heard evidence that a lot of Jersey businesses are frustrated with the lack of dialogue from Government, with some telling the business bodies that they would not take part in procurement process again having become disheartened by their past experiences. The Committee received evidence that the Government often fails to provide adequate feedback to businesses rejected for tender contracts. A Chamber of Commerce survey of its members had 79% of respondents say they were dissatisfied or very dissatisfied with the procurement process while more than half said a lack of communication is a real issue.
- Concerns over fairness: Representatives from Jersey's business organisations told the Committee that there was a feeling that Government had a list of preferred providers for certain types of contracts and that some local firms were being passed over. During the hearing, evidence was also heard that a number of Jersey businesses feel unable to raise concerns about the procurement process for fear that this would negatively affect any the outcome of future tender offers. The Committee was told that business owners only agreed to take part in surveys and questionnaires on procurement on the basis of absolute anonymity for this reason.
- Government support for local businesses: Business representatives suggested that there is a lack of understanding for the significance of trying to keep money within Jersey. The Committee heard that contracts appear to automatically be offered to the lowest bidder, with no consideration of the potential benefits in terms of skills and tax revenue to keeping the contracts with Jersey businesses.
'The Committee was deeply concerned to hear evidence that business owners feel unable to raise these concerns publicly for fear of being rejected from future tenders. Based on the evidence we heard, it is apparent that Jersey businesses feel the Government does not do enough to engage with them and this has led to a number feeling dissatisfied with the process.
'We would therefore encourage Government to speak with business leaders and create better lines of communication to ensure that Jersey companies feel the procurement process works better for them.'
A recording of the hearing can be watched back on our website: HERE and on YouTube: HERE
