Public procurement law launched

The Saxon cabinet has launched the draft of a new public procurement law, thereby releasing a source of conflict within the coalition for consultation. The law is intended to make public contracts subject to more conditions and is a long-standing concern of the SPD in particular. After the cabinet meeting on Tuesday, Economics Minister Martin Dulig (SPD) spoke of the need for fair, social and ecological conditions for competition. If the state has to award contracts, it must also be able to determine the rules of the game. However, the current mood is not such that everyone is saying "great, a new law". Dulig assumed that the draft would still change during the hearing. There will be no more decisions in this legislative period, but a basis has been laid for the coming legislative period.

Saxony's Minister President Michael Kretschmer (CDU) had recently caused irritation and triggered criticism with comments on the public procurement law. At the Leipzig business community's New Year's reception, he said: "We will not make a law against the vote of the business community. If the business community says no, that also means no."

The procurement law was agreed in the coalition agreement between the CDU, Greens and SPD and is intended to tie the awarding of public contracts to innovation as well as social and ecological sustainability. Public contracts are no longer to be awarded to the lowest bidder, but according to the best bidder principle. The CDU fears more bureaucracy in the awarding of public contracts.

The draft bill presented contains several new regulations. In particular, services in the area of public passenger transport by road and rail will in future only be awarded to companies that comply with the minimum working conditions of relevant collective agreements. In the event that no collective agreements exist, a contract-specific minimum wage is planned. "We want to use taxpayers' money to award contracts to companies that pay their employees adequately and offer good work," said Dulig.

At the same time, the minister warned against terminating collective agreements in public transport and dumping in this sector. Anyone considering such a move could only wish them a "safe journey", said the minister, not without sarcasm, referring to the shortage of skilled workers that already exists today. After all, such companies would no longer be able to find people in the future.

Dulig admitted that his ideal of a public procurement law looked somewhat different to the current draft. He would have liked more clarity on certain points. However, in view of the social mood, a compromise had to be accepted.