Public procurement in the foundational economy

The Economy, Infrastructure and Skills Committee agreed to undertake an inquiry on procurement in the foundational economy.



The foundational economy is built from the activities which provide the essential goods and services for everyday life, regardless of the social status of consumers. These include, for example, health, education and welfare services;  infrastructure; utilities; food processing; and retailing and distribution. The Welsh Government has recently set out its intention to increase public procurement as part of a drive to ‘create stronger local supply chains and build wealth in communities across Wales’.


Terms of reference

The Committee sought views on the following:

  • What is the current position regarding the proportion of public contracts in Wales that go to Welsh suppliers?
  • To what extent could increasing ‘local procurement’ by the public sector create stronger local supply chains and build wealth in communities across Wales?
  • What is your view of the Welsh Government’s intended approach to increasing the amount of ‘local procurement’ undertaken by the public sector in Wales (including how ‘local procurement’ will be defined and monitored; how the principles of sustainable and ethical procurement are being applied; and how the statutory goals set by the Well-Being of Future Generations (Wales) Act are being met)?
  • In what ways can local spend, and collaborative procurement amongst SMEs, be increased and sustained while working within the EU procurement framework, whatever arrangements may be in place following Brexit?
  • Can you give examples of similar public procurement initiatives elsewhere in the UK and EU?

Business type: Committee Inquiry

Reason considered: Senedd Business;

Status: Complete

First published: 22/07/2019