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Tyneside council chiefs angered by contract win

Thursday August 11th, 2011

According to new reports council leaders in Tyneside want local builder merchants to get a greater share of council maintenance contracts.

Wolseley’s contract win in South Tyneside has angered some business leaders.

The commitment to ensure that local companies are given a greater share of the work comes amid concerns that local firms are not receiving a big enough share of council contracts, after South Tyneside Homes awarded a major maintenance supply contract to Wolseley.

In the financial year 2009/10 only £51.2m of the £161.5m spent by the council on goods and services went to companies within South Tyneside – less than a third of all the work offered for tender.

Bbusiness leaders said the award of the lucrative supply contract, believed to be worth £1m to Wolseley UK, would hit local jobs.

Under the new procurement approach, which aims to increase that proportion, local firms could be able to supply everything from cement and paint to stationery and sandwiches.

The policy, to be branded ‘Supply South Tyneside’ will provide a boost to borough firms and the economy, and potentially offer better deals for the cash-strapped local authority.

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