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Grenfell Inquiry second report: bracing for change in the UK construction industry
On 4 September 2024, the long-awaited Grenfell Tower Inquiry: Phase 2 Report (the Grenfell Report) was published.
Publication | October 5, 2015
The public procurement framework is used as a tool for not only ensuring that government can procure the right goods and services at a competitive price, but also to drive key economic policy objectives. Recently, there has been a growing emphasis on incentivising local production through the public procurement framework. This has led to concerns that the collaboration encouraged to make local procurement workable might lead to contravention of the Competition Act.
On 1 July the Competition Commission hosted a seminar attended by a range of stakeholders to discuss some of these issues. The keynote speaker was the Minister of Economic Development, Minister Ebrahim Patel. The Minister noted that, in promoting local production, two processes are needed which have an inherent tension: collaboration and competition.
To incentivise local production, the Department of Trade and Industry designates specific sectors where only goods meeting a minimum threshold for local production may be procured by the public sector. In engaging in supplier development in order to make local production feasible, the emphasis on collaboration by potential suppliers, or the collaboration between competing firms with the intention of fostering local supply, may contravene the Competition Act.
At the seminar, a speaker from the private sector highlighted the pro-competitive justifications for local procurement policies, including the reduction of barriers to entry for SMMEs; contributing to a transformative economy where ownership is shared; local industry is developed with the attendant job creation; and job loss is prevented. The principal risks are that this could lead to competitive distortions such as market foreclosure to international entities and creating an unnatural competitive advantage for the entities that receive support.
Dr Mncube, chief economist at the Competition Commission, provided guidance on some of the best practice considerations that should be taken into account in emphasising local procurement. These include:
The Competition Commission is aware of the competition law risks in driving local procurement. In promoting supplier development through local procurement, companies should adhere to best practice considerations, including those set out above, because compliant collaboration between competing firms can contribute to the development of local industry.
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On 4 September 2024, the long-awaited Grenfell Tower Inquiry: Phase 2 Report (the Grenfell Report) was published.
Publication
On 3 September 2024, the ECJ delivered its judgment in Illumina’s appeal against the General Court’s (GC) judgment confirming the European Commission’s (EC) powers to review concentrations under the EU Merger Regulation (EUMR) in circumstances where no Member State has jurisdiction under national law.
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One of the driving forces of the ‘fourth industrial revolution’ - AI- has the potential to redefine and disrupt industries worldwide. The MENA insurance industry is no exception, offering a unique landscape for AI adoption characterised by significant challenges and opportunities. Middle East Insurance Review spoke to Norton Rose Fulbright’s Ms Shabnam Karim and Messrs Shiv Daddar, Simon Lamb and Marcus Evans to find out more.
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