Telecoms freed from buying rules

Supply Management,  Mar 26, 1998  

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The EC's long-awaited communication on public procurement directives has met with widespread approval from purchasing practitioners

Telecoms companies operating in a competitive market are to be freed from European purchasing rules under a raft of proposals from the European Commission.

The EC's "communication" on public procurement also lays out plans for new legislation to exempt other utilities, such as water, gas and electricity, from the purchasing rules once they operate in a competitive environment.

Jeff Woodhams, head of procurement group for the Electricity Association, said that the development was "a much more radical change than we thought possible 12 months ago". BT, which has been putting pressure on the commission to free private-sector companies operating in a competitive market, welcomed the proposals.

The communication also brought good news for public-sector purchasers. As well as plans to allow negotiation and framework contracts, the EC wants to see the supplies, works and services directives consolidated into a single directive by 2001. One of the more fundamental changes is the end of the paper version of the EC Official Journal (OJEC) in which purchasers must advertise contracts above certain thresholds. From July, the OJEC will only be available on the Internet and CD-ROM as part of general developments on electronic commerce. The commission has also set a target of 25 per cent of procurement transactions to be electronic by 2003.

John Colling, HM Treasury head of procurement policy, told SM: "If I take my list of things I wanted the commission to address, they are all there. Purchasers are going to be quite pleased."

Amanda McIntyre, senior policy adviser for the Confederation of British Industry, said: "The commission needs to back up a good technical understanding with a political push. DG 15 [the EC directorate responsible for public procurement] is obviously committed to make this work a priority, but it needs to make sure that it gets commitment from the EC council and parliament. It's up to all of us to make sure the message gets through."

Copyright Chartered Institute of Purchasing & Supply Mar 26, 1998
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