A new single supplier model for public sector food provision will not be implemented in Wales, the Welsh government has confirmed.
England and Wales often work together on policy, but the devolved government said it was not consulted on the proposed changes.
The new model proposed for England will see a prime supplier awarded a single contract to service the entire public sector.
It has been described as ”potentially catastrophic” for regional wholesalers.
“Our approach is to encourage the Welsh public sector to build resilient supply chains based around locally sourced Welsh food, and to increase the supply of it on to public plates,” said a Welsh government spokesman.
“The single supplier model being proposed by the Crown Commercial Service will not change our approach.
“It is not aligned with the policy aspirations and foundational economy approaches we are progressing alongside our public sector organisations.”
The news comes as a relief for Welsh wholesalers such as Castell Howell, which conducts around 30% of its business with the public sector.
“We were very concerned initially, but now we are slightly comforted by the fact that it seems to be a devolved issue,” said Castell Howell director Matt Lewis.
“In Wales we got a very swift response, saying that they knew nothing about it and remain committed to supporting local businesses.
“However, we still want to be united with other wholesalers in England, because to potentially cut them out like this is disgraceful.”
Criccieth-based wholesaler Harlech Foodservice said it was pleased at the news but remained concerned the new policy would affect business, given its operations on both sides of the border.
“We are grateful that the Welsh government have realised the folly of such a policy and have wisely decided against implementing it,” said Harlech MD David Cattrall. “However, this is very much a double-edged sword for us.
“While much of our public sector work is currently in Wales, we are also growing in England and we have won a number of contracts, particularly in the education and health sectors.
“We met our local MP Liz Saville Roberts last week and she is going to raise the matter via a written parliamentary question, so that she can flag up her deep concerns and objections.”
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