Pandemic hits strong local procurement performance – but OIC ‘buying local’ still tops £15.4M

Orkney Islands Council is likely to see its latest high-ranking performance for ‘buying local’ slip due to the effects of the pandemic.

National figures announced recently for Scottish Procurement in 2019/20 have placed Orkney third across all 32 Scottish Local Authorities in this year’s Annual Procurement Report.

41% of OIC’s £45.3 million annual spend was awarded to local SME’s in 2019/20 - well above the Scottish average of 29%.

However, the report which came before Policy and Resources today (Monday 29 November), sees figures drop markedly for the following 2020/21 financial year – the height of the pandemic - where total spend fell to £40.4 million.

The purchase, via national contracts, of PPE and IT equipment to enable safe working has contributed to OIC’s local spend falling to 38%, or £15.4 million.

Also factored into the decline in percentage local spend by the Council is the two periods of school closures, which saw its school kitchens – who source much of their food supplies from local producers - operate at much lower levels than normal for several months.

The slowdown in local construction due to lockdowns and difficulties with building supplies globally also impacted on last financial year’s figures.

Kenny MacPherson, Interim Head of Service for Property, IT and Facilities, said: “What is important is that the necessary but uncharacteristic spend on pandemic specific costs is just part of the picture. Our commitment to spending locally where we can remains, and it’s important to note that we have recently introduced a Sustainable Procurement Impact Assessment which considers aspects of sustainability for the local economy in award decision making.”

Speaking after the meeting, Chair of Policy and Resources Committee and OIC Leader, James Stockan, said: “The pandemic has brought huge challenges and has required big purchases outwith Orkney and this has skewed our local spending percentages reported today.

"While there may yet be bumps in the road I know our procurement team is working very hard to follow the solid processes in place to ensure that as far as possible our purchasing as a Council maintains a healthy baseline spend within the county. I’ve no doubt of officers dedication to that task and of keeping us towards the top of the table in that regard.”