North Wales MS Mark Isherwood has questioned the First Minister this afternoon over action the Welsh Government is taking to ensure that Small and Medium-sized Enterprises (SMEs) in Wales are properly supported, highlighting the difficulties facing Welsh Construction Firms.
Speaking in today’s meeting of the Welsh Parliament, Mr Isherwood referred to a new report which has revealed that a rising number of Welsh construction firms are facing administration, and asked the First Minister, Eluned Morgan, how the Welsh Government will work with representatives of SME contractors to ensure that the sector can continue building.
He said:
“We can't build sustainable public buildings without construction firms. In Wales, these are predominantly Small and Medium-sized Enterprises, or SMEs. A new report by the Chartered Institute of Building has highlighted a rising number of Welsh construction firms facing administration, blaming this on issues including a skills crisis, coupled with overcomplicated tender processes, and a lack of local government support.
“The Managing Director of one of these construction SMEs said that ‘a simplified process would allow SMEs to compete for public sector contracts. This could include reducing and simplifying the qualification criteria and introducing proportionate requirements for smaller projects’. He went on to say that ‘the Welsh tendering processes, especially for public sector projects, often require adherence to Welsh Government-specific regulations, which can complicate bids’.
“So, how will the Welsh Government work with representatives of SME contractors, including the Chartered Institute of Building, to ensure a thriving sector that can continue building, amongst other things, sustainable public buildings in Wales?”
Responding, the First Minister said:
“We're all aware of the huge increases in costs that the construction industry has faced, in particular the massive impact that inflation has had on some of the raw materials. That's impacted on every aspect and, in particular, on our ability in Government to make the kind of developments and advances that we hope to see when it comes to capital investment, and, of course, that means that the construction industry has also been challenged.
“On the SMEs, you're quite right - we have to make sure that there are opportunities for them to compete, and that's why there are examples in procurement where we've broken down the big procurement projects into smaller projects to enable some of those local suppliers and SMEs to be able to tender for that work.”