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Studying the details of Government Procurement strategy sounds like the definition of ?as boring as watching paint dry.?? In truth large parts of it are incredibly dense, written by lawyers for lawyers, and actively discouraging people from learning about it. That?s a shame, because how the Scottish Government decides to use its spending power is actually incredibly powerful.? In Scotland the public sector spends about ?9bn a year through procurement.? That means the Scottish Government can put real pressure on private companies who receive large amount of taxpayers money.
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From an SYP perspective, a key issue this year is promoting the Scottish Living Wage.? However, whilst some businesses are prepared to listen to MSYPs making the case for fairer wages, a lot will be more persuaded by making paying the Living Wage a condition of their government contract.
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Of course, this is where things become more complex.? The Scottish and UK Governments , are concerned about whether putting these conditions in place would comply with EU law in this area.? At the same time, Glasgow City Council, the London Olympic Games, and a host of other organisations have been able to insist their contractors pay a Living Wage without facing legal repercussions.
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However, it?s important not to allow these legal abstractions to be allowed to distract from the real issue.? Children in Scotland are living in poverty because they have a parent who doesn?t earn enough money for the family to live on.? Over half a million people in Scotland are in low-paid work.? That is a scandal, and the Scottish Government should use all available tools to ensure as many workers as possible are paid a fair and decent Living Wage.
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SYP?s One Fair Wage campaign has already helped convince local authorities who were on the fence to declare they will pay their own workers the Scottish Living Wage.? That?s a good start, but until private companies join in, the battle for fairer wages will not be won.? That?s why procurement really does matter.
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The Scottish Youth Parliament recently submitted a consultation response to the Scottish Government?s Procurement Reform Bill.? The consultation response can be read here ? and a summary of SYP?s recommendations can be read below:
- The Scottish Youth Parliament believes that procurement should be used to encourage contractors from the private and voluntary sectors engaged in delivering public service contracts to pay the Living Wage.
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- The Scottish Youth Parliament urges the Scottish Government to work with campaigners, legal experts, and agencies who have successfully extended their Living Wage commitment to the services they procure, to explore all possible avenues to ensure that contractors pay employees working on public sector contracts a Living Wage without contravening European law.
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- The Scottish Youth Parliament recommends that contractors should be encouraged through procurement processes to pay a Living Wage to the fullest extent permissible within European law, from the earliest stage of the process, and in such a form that encourages this to take place.
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- To tackle in-work poverty, the Scottish Government should set up a recognition scheme for employers that pay a Scottish Living Wage, which is regularly reviewed to make sure it is meeting minimum income standards.
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- The Scottish Youth Parliament believes that the Living Wage should be promoted in all public contracts.
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- The establishment of a Scottish Government Living Wage Unit could play an effective part in assessing the impact of promoting the Living Wage through the procurement process.
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