There is new pressure on the government to scrap a public procurement rule which hinders small businesses.
The Forum of Private Business (FPB) has called on the government and EU commissioner Peter Mandelson to stop smaller firms being squeezed out of the market for public contracts.
Under current World Trade Organisation rules any favouring of smaller firms in procurement tendering is forbidden in the EU.
However, small businesses are exempt from the agreement in countries such as Japan, South Korea and the USA. The FPB wants the same exemption for UK firms.
“The UK government must take notice and implement the exemption, by actively engaging smaller firms in the procurement process,” said Martin Smith, FPB’s European spokesperson.
“We must make sure smaller businesses in the UK and the EU are allowed to enjoy the same advantages as their counterparts around the world”.
Speaking at an event this week on small firms’ access to public procurement, Smith called on Mr Mandelson to directly stick up for smaller firms in the World Trade Organisation.
The FPB believes an EU rule forbidding quotas being set aside for smaller businesses in public tenders should also be changed.
“The whole expensive, bureaucratic, non-transparent public procurement process excludes smaller businesses to such an extent that a quota would actually correct, rather than create, discrimination,” said Smith.
© Crimson Business Ltd. 2006