Select Committee on Environmental Audit Third Report


Introduction

1. During the last months of the 2001 Parliament, the Environmental Audit Committee (EAC) conducted a short inquiry into how the Government was bringing the principles of sustainable development (SD) to bear upon its procurement policy and advice. The Committee agreed a short Report on this subject, just a few weeks prior to the 2005 General Election, and expressed the hope that its successor Committee would return to the subject of sustainable procurement early in the new Parliament, to take advantage of the work that it knew the National Audit Office (NAO) was at that time undertaking in this area.[1]

2. The new Environmental Audit Committee met for the first time on 14 July 2005. At that meeting, we decided to launch a short follow-up inquiry on sustainable procurement. The purpose of this inquiry was to ascertain what progress had been made since the predecessor Committee's Report of April 2005, to take advantage of the analysis and assessment contained within the NAO's review of sustainable procurement—which was due to be published in September 2005—and to help inform the work of the Sustainable Procurement Task Force (SPTF), which was set up very shortly after the April 2005 EAC report and which was due to report to the Government with an Action Plan by April 2006.

3. We launched our inquiry on 1 September 2005, the day that the NAO issued its Review, Sustainable procurement in central government. We received 14 memoranda from, amongst others, the Environment Agency (EA) and the Sustainable Development Commission (SDC). We also took oral evidence from the Office of Government Commerce (OGC), the agency which, under Her Majesty's Treasury (HMT), oversees and advises upon government procurement policy, and from Elliot Morley MP, an ex officio member of EAC and Minister of State at the Department for Environment, Food and Rural Affairs (DEFRA). We are grateful to all those who submitted evidence or appeared before us. We are particularly grateful to the NAO for its excellent Review which provided us with an up-to-date and comprehensive assessment of the situation when the inquiry was launched.

4. While undertaking this short inquiry we were of course mindful of the work being carried out by the SPTF. The Task Force has an enormous amount of work to rationalise and sum up in its soon-expected Action Plan This Plan will hopefully give greater momentum, clarity and focus to this area of government activity, qualities which it has by and large lacked despite the work of Elliot Morley and DEFRA to engage the rest of Government, and OGC in particular, in this agenda. Procurement ranges from the purchase of paper-clips through to buildings and IT systems, and many small-scale procurers often feel under-empowered to purchase more sustainably while large-scale procurers often have their attention drawn away from SD and environmental issues by other pressing concerns—notably deadlines and cost. Approximately £125 billion is spent each year on procurement within the public sector[2] of which £15 billion is spent directly by central government departments and their executive agencies[3]—this is money which, if spent sustainably, could transform markets and business in an innovative and environmentally sound way. The repercussions of such sums spent unsustainably are obvious. We look forward to the Task Force's Action Plan and hope that it sets out directly and clearly exactly how the Governmentand the public sector at largemay transform sustainable procurement from an opportunity to an achievement.


1   Environmental Audit Committee, Sixth Report of Session 2004-05, Sustainable Public Procurement, HC 266 Back

2   Q6 Back

3   National Audit Office review, Sustainable procurement in central government, September 2005: executive summary, para. 1 Back


 
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