Report finds North East firms losing contracts

Nov 18 2009 by Chris Knox, The Journal

THE vast majority of companies in the North East are believed to be losing out on vital contracts within the public sector because of over-complicated applications and a lack of cohesion between councils.

A survey by the North East Chamber of Commerce (NECC) has revealed that businesses see the process of pitching for public sector contracts as complex and the inconsistent between each council.

The report, which questioned 190 businesses in the region, revealed that 80% said that the associated documents were too complicated and that a simpler process would make them more likely to bid.

The report is part of a campaign by the NECC to make public tenders more attractive to business. Its research shows the North East’s economy would grow by £1.35bn and add an extra 6,000 direct jobs if local Government spent an additional 1% each year on contracting services within the region.

Ross Smith, head of policy and research at NECC, said: “The survey confirms many of our fears – that the process of public sector tendering is putting businesses off.

“The public sector makes up a large part of our regional economy and it is critical that it uses the £3.5bn it spends on goods and services each year for the maximum economic benefit of the North East.

“However in order to capitalise on this opportunity it is essential that more is done to make the process of tendering more straightforward and user-friendly.”