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'Buy Welsh' public bodies told 'Buy Welsh' public bodies told
(about 2 hours later)
More than half of Welsh public money spent on goods and services goes to companies outside Wales, according to official figures. More than half of Welsh public money spent on goods and services goes to companies outside Wales, according to latest research.
The Value Wales study for the assembly government found £2bn was leaving the Welsh economy every year. The Value Wales study for the assembly government suggests £2bn is leaving the Welsh economy every year.
An all-party group at the assembly is to hear how Welsh firms can compete more effectively for the cash - on anything from apples to computers.An all-party group at the assembly is to hear how Welsh firms can compete more effectively for the cash - on anything from apples to computers.
Business leaders say there is scope for boosting the use of Welsh produce.Business leaders say there is scope for boosting the use of Welsh produce.
The assembly government said it was improving, and that councils, schools and hospitals were buying a quarter of their food and drink from Welsh companies - a 6% increase over three years.The assembly government said it was improving, and that councils, schools and hospitals were buying a quarter of their food and drink from Welsh companies - a 6% increase over three years.
Some ministers are wary the "buy Welsh" policy may cause legal difficulties, as European laws demand open, free and fair competition within and between member states.Some ministers are wary the "buy Welsh" policy may cause legal difficulties, as European laws demand open, free and fair competition within and between member states.
BIG SPENDERS Councils and education authorities 53%NHS 27%Assembly government and bodies 13%Higher education 5%Further education 4%Welsh public spending share. Source: Value WalesBIG SPENDERS Councils and education authorities 53%NHS 27%Assembly government and bodies 13%Higher education 5%Further education 4%Welsh public spending share. Source: Value Wales
The latest research by Value Wales suggests that local government and schools account for more than half of public spending, followed by the NHS with just over a quarter. The research is part of ongoing research by Value Wales, a division of the assembly government. Latest figures suggest that local government and schools account for more than half of public spending, followed by the NHS with just over a quarter.
But lawyers argue there are ways of increasing the number of contracts going to Welsh businesses.But lawyers argue there are ways of increasing the number of contracts going to Welsh businesses.
Insisting on "fresh" produce - or including clauses which required a company to respond quickly to deal with problems - could favour local companies without breaking the law, legal experts believe.Insisting on "fresh" produce - or including clauses which required a company to respond quickly to deal with problems - could favour local companies without breaking the law, legal experts believe.
The latest research by Value Wales - an agency within the assembly government - suggests between 45% and 49% of public contracts go to Welsh companies.The latest research by Value Wales - an agency within the assembly government - suggests between 45% and 49% of public contracts go to Welsh companies.
Public bodies in Wales spend between £4.5bn and £5bn a year - equivalent to a third of the assembly government's entire budget.Public bodies in Wales spend between £4.5bn and £5bn a year - equivalent to a third of the assembly government's entire budget.
Half of this amount is lost to the Welsh economy each year.Half of this amount is lost to the Welsh economy each year.
The assembly government has estimated that for every 1% increase in spending within Wales, a further 2,000 jobs could be created.The assembly government has estimated that for every 1% increase in spending within Wales, a further 2,000 jobs could be created.
The range of goods and services bought by public companies include carpets and furniture new roads and buildings, stationery, food and drink, and staff training.The range of goods and services bought by public companies include carpets and furniture new roads and buildings, stationery, food and drink, and staff training.