Web auctions could save Welsh councils "millions"

Swansea Council claims an online auction collaboration with a neighbouring council could pave the way for other Welsh authorities to save millions of pounds in the procurement of key contracts.

As part of its e-government programme, Swansea worked with Neath Port Talbot Council to procure by online auction a tinned and dried foods supplier for schools in a contract worth £1.3m per year. The auction will save the councils £650,000 over the next five years.

Swansea council leader Chris Holley said there are plans to extend the use of online auctions.

He said in a statement: "It is the first demonstration of the council's e-government programme in action and how it can save taxpayers money and improve services at the same time. We will be able to apply this procurement system to other contracts too and it could save the council millions of pounds over time."

Counciller Russell Roberts, Welsh Local Government Association spokesman on procurement, said the auction was a sign of things to come for Wales.

"Councils have done a lot of ground work preparing for e-auctions," said Roberts. "Swansea and Neath Port Talbot will be the first to benefit from this collaborative approach which should see substantial savings, through high quality contracts at competitive prices.

"Millions of pounds of savings could be made across the public sector in Wales through this approach."