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There are requirements for that in the strategy, but there are important flexibilities, too.

I will provide the detail behind that.

There is a good level of engagement between procurement officials in Scotland and those in the other nations of the UK. We have seen recent reform of procurement legislation, both by the UK Government on behalf of England and in reserved bodies, and also in Wales.

Of course, beyond that engagement, we are looking on with interest at what is happening, and, in many respects, we are seeing other parts of the UK seeking to catch up with where we are in Scotland. As we touched on earlier, we are very much ahead of the curve, because of what we achieved in 2014. Different provisions have come in via UK legislation, and we will, of course, want to monitor that very carefully. We are always keen to understand different approaches and any learning that we can take from them.

Broadly, what we have in Scotland—and what has been reflected in the evidence that the committee has taken—is a strong piece of legislation that supports regulations, buttressed by the comprehensive suite of guidance and support that we have touched on.

Good morning. Thank you very much for the invitation to appear before you this morning.

It seems to be clear that there is agreement on the importance of public procurement in Scotland and the role that public procurement plays in delivering sustainable economic growth, as well as on the big steps that have already been taken to improve the way in which the public sector buys goods, works and services.

The 2014 act was intended to be powerful and proportionate and to place sustainability and wellbeing at the heart of procurement activity. It places on public bodies a small number of general duties and some specific measures that are aimed at promoting good, transparent and consistent practice. It has led to a range of measures to make procurement opportunities more accessible to small and medium-sized enterprises, third sector bodies and supported businesses. Those include advertising opportunities through Public Contracts Scotland, dividing contracts into lots, subcontracting opportunities through the supply chain and supplier development activities.

We deliberately built on the legislative framework and developed business-friendly and easy-to-access training, guidance and support for businesses of all sizes. The results are demonstrated through the Scottish ministers’ “Annual Report on Procurement Activity in Scotland”, which we published this week. For example, 56 per cent of the £16 billion of Scottish public sector procurement spend went to Scottish businesses and 55 per cent went to Scottish SMEs, which provided £7.5 billion to Scottish gross domestic product along with 130,000 full-time equivalent jobs.

We actively undertake research and engagement and seek feedback from industry, the public sector, third sector and supported businesses to test and inform our approach. We do that through surveys, commissioning research, our public supply group, industry representation, and hosting supplier round tables. The findings from that research underpin Scotland’s public procurement strategy, which was developed across the sectors and with industry, and was published in April last year and is a first in providing a high-level vision for Scottish public procurement.

It was reassuring to hear those who gave evidence to the committee talk in favourable terms about the changes that have been introduced by the legislation. The 2014 act is critical in underpinning an approach to public procurement that helps to create opportunity, boost inclusive and sustainable economic wellbeing, tackle inequalities and create real social impact.

The journey, however, is not complete. We will always look at what more we can do to maximise the impact of public procurement in Scotland. With that in mind, I welcome the committee’s post-legislative review of the 2014 act.

I am more than happy to do that. I recognise that that is one of a number of areas in which there will always be tensions, because tensions always exist in procurement. With your permission, convener, I will bring in Nikki Archer to say a few words.

I appreciate the question and want to record my thanks to the SDP for its outstanding work, which I think we all recognise.

A number of activities are taking place. First, we are one of a number of partners that fund SDP, which runs a range of activities including training, the provision of guidance and local and regional “meet the buyer” events. The Government also works with some of the national events that create opportunities for suppliers to engage directly with buyers. Moreover, there is the range of guidance that has already been touched on in earlier questions and which we provide via the Public Contracts Scotland website, where you will find links to the various forms of support. Therefore, there is the online activity, and there is also our work to support SDP.

On the broader issue of our practice with regard to engagement, Graeme Cook might have something to add.

That work is at a very early stage and we are still scoping things out. As the committee will have heard from previous witnesses, we have started the process of engagement, but the work at the moment is very much about building the evidence base. Instead of the Government presupposing what PCS should look like, it is looking to understand more fully the feedback and the particular issues that have been raised, which Mr Fraser has referred to.

That process of engagement will help to inform our work in this space. As we move forward, I will, of course, be more than happy to keep the committee up to date.

Nikki, do you want to add anything?

That comes back to the issue of what is in the legislation and how that has been implemented. The committee will be familiar with the requirements under the legislation around regulated procurement, the provision of feedback and opportunities for further engagement. The committee will be aware from its evidence taking that there are many buyers who are more than keen to engage with suppliers who are unsuccessful, because such feedback is important in allowing suppliers not only to stay engaged with the public procurement system but to enhance their capacity and ability, and their opportunities, to win contracts in the future.

On the issue of implementation and how we seek to ensure that the requirements of the act are effectively carried forward, I will ask Graeme Cook to come in.

As part of the community wealth building legislation process, in the consultation on that, as well as asking a specific question about the proposed duties, we asked for any feedback across the five pillars of community wealth building. We received specific feedback that suggested that changes should be made to the thresholds in the procurement legislation. At the moment, I am not in a position to say what the Government’s response to that is. We are still giving the matter detailed consideration, but it was raised as part of that process.

I will ask Nikki Archer to come in on the specifics. You raise an important point. As has been suggested previously, I highlight the importance of the requirements being proportionate. We have already had an exchange on the pressures and the resource challenges that we are currently facing.