Select Committee on Public Accounts Thirteenth Report


3  Sustainable and ethical food sourcing

24. The Government's objectives for sustainable food procurement include increasing the capacity and opportunities for smaller and local producers to meet public sector demand.[59] In practice there is widespread confusion among public bodies and suppliers of food and catering services about what sustainable food procurement means, and as a result they often provide incoherent and inconsistent specifications to their food and catering suppliers.[60]

25. Aggregation of demand should not necessarily mean aggregation of supply; departments recognise the need to strike the right balance between the use of centralised contracts to get better deals, and encouraging public bodies to work more closely with local markets.[61] The Department for Education and Skills, working jointly with the Department of Environment, Food and Rural Affairs, is encouraging local authorities and schools to look for local, smaller and sustainable sources so far as possible which offer value for money. The MoD has worked with the UK meat industry, to increase the amount of UK produce that can be supplied competitively.[62] The NHS Purchasing and Supply Agency has achieved such an increase in some of its frameworks by breaking them into lots and encouraging bids from local and regional suppliers.[63]

26. It is possible to increase the proportion of food purchased competitively from local or regional producers while complying with EU competition rules. For example, Shropshire County Council has brought together local producers for the provision of school food by simplifying their procurement processes and breaking up the contracts so that smaller more geographically isolated suppliers can bid to supply clusters of local schools in their immediate area.[64]

27. Frontline procurers can increase the proportion of food purchased from 'Fair Trade' sources particularly where these offer the same standard and competitive prices.[65] For example, the Ministry of Defence has used food selection panels to identify fair trade coffee of the same quality as a lower cost replacement for its existing brand.[66]

28. Frontline procurers need to satisfy themselves that the animal welfare and food production practices of their supply chains adhere to UK standards.[67] The NHS Purchasing and Supply Agency conducts unannounced external audit spot checks of its supply chains, and overseas audits where appropriate.[68] The Ministry of Defence inspects, for example, its suppliers of meat to check the standards under which animals are kept and slaughtered.[69] In the schools sector the responsibility for inspection and spot checks rests with local authorities and schools or their catering contractors.[70]



59   C&AG's report, Smarter Food Procurement in the Public Sector, HC (Session 2005-06), 963-I, para 1.12, page 25; The Public Sector Food Procurement Initiative (details available at www.defra.gov.uk) Back

60   C&AG's Report, Smarter Food Procurement in the Public Sector, HC (Session 2005-06), 963-I, para 2.18, page 39 Back

61   Qq 20, 108, 109 Back

62   Qq 11, 110 Back

63   C&AG's Report, Smarter Food Procurement in the Public Sector, HC (2005-06) 963-I, para 2.9, page 35 Back

64   C&AG's Report, Smarter Food Procurement in the Public Sector: Case Studies, HC (2005-06) 963-II, Case example A, page 8 Back

65   Qq 45, 46, 47 Back

66   Q 48 Back

67   Qq 108, 122, 123 Back

68   Qq 108, 110 Back

69   Q 123 Back

70   Q 109 Back


 
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