Public sector faces supplier loss

7 June 2010

8 June 2010 | Nick Martindale

Suppliers could move away from the public sector and into alternative markets if the process of renegotiating contracts is badly handled, analysts have warned.

Gordon Samet, former head of national contracts at the Department for Environment, Food and Rural Affairs, who now runs his own consultancy, said: “The public sector is quite a tough marketplace and budgets are going to be slashed very quickly and programmes will come to a halt.

“It’s going to be a very different market to operate in so we’re diversifying and others doing business with the public sector are saying the same,” he said.

Peter Howarth, chief executive of the Society of Procurement Officers in Local Government, said: “Sometimes there’s this endearing belief that suppliers are queuing up to supply us, and they will in a recession.

“But when we come out the other end they’ll be off to other markets and you can’t really blame them.”

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