Labour MSP Lewis Macdonald says the SNP has has responsibility of public procurement policy for 11 years and it cannot seek to place the blame elsewhere.

He expresses concern that the new social security agency will employ agency workers rather than temporary staff.

Economy Secretary Keith Brown says this is not the case.

Mr Macdonald says unitary payment charges as part of the NPD model will still need to be paid for decades to come.

"The time has come for a root-and-branch review of public procurement."

The Scottish government must think again about the public sector's relationship with contractors, the Labour MSP argues, though he accepts that many private companies do have good working practices.

"Companies can surely not be allowed to benefit from Scottish public sector contract while taking no responsibility for the Scottish economy," he concludes.

Ferry services in Scotland should be brought under government control if EU rules allow it, the transport minister said last year.

Humza Yousaf said the Scottish government would prefer to use an "in-house operator" if it is permitted following a European Commission review.

The tendering process for Northern Isles and the Gourock-Dunoon ferries is to be paused during the review.

The current providers, Serco and Argyll Ferries Ltd, have been informed.

Read more here.

Economy Secretary Keith Brown says "the Labour party is, above all else, the party of PFI".

He also says Labour is "determined" to leave employment law to the Conservatives in the UK government, including on the living wage and blacklisting.

"These are the reasons we can't take the action" Labour is calling for, he says.

94% of people employed on public sector contracts are paid the living wage despite this, Mr Brown adds.

The cabinet secretary reiterates that a review of procurement activity will be published by the end of the financial year 2018-19.

"We have a positive story to tell and we are proud of the progress we have made on public procurement."

Mr Brown compares Scottish bylaws on procurement to the UK government, noting Scotland is the only nation in the UK which ensure quality as well as cost is taken into account.

Royal Bank of Scotland chairman Howard Davies has called the private finance initiative a "fraud on the people".

Asked about the demise of construction giant Carillion on BBC One's Question Time, Mr Davies questioned the point of handing over big projects to private firms, whose borrowing costs would be higher than the government.

"What is the advantage of doing that, unless you're absolutely certain that they're going to be much more efficient?" he asked.

"If you think they're going to be efficient, why don't you give them a fixed-price contract, why hand over the whole thing?"

Moving to closing speeches, Tory MSP Miles Briggs says procurement policies must deliver value for money, good employment practices, local supply chains and be transparent.

He expresses concern about the decline in spend by local authorities on services from SMEs.

If Scotland is to be a good food nation, we must also make sure we are using this food ourselves, Mr Briggs argues.

The Tory MSP notes the Scottish government's poor record on IT projects and contracts.

We need to consider how to pool and promote procurement on a regional basis, Mr Briggs states, arguing this is particularly important for planning developments for the NHS.

School children are eating chicken produced 6,000 miles away in Thailand, a BBC investigation found in February 2017.

Scottish government ministers have repeatedly called for supermarkets and shops to buy local.

But the BBC found Scottish councils are spending millions importing food which could be sourced in Scotland - Glasgow alone spends £1.3m a year on imports.

Procurement body Scotland Excel said it had in the past been "difficult to meet poultry demand" from within Scotland.

Read more here.

Richard Leonard used his Scottish Labour conference speech at the weekend to underline his "mission" to "fundamentally change" the economic system.

The party leader told delegates in Dundee that "our economy needs less market and more planning".

He positioned his party firmly against private financing of public infrastructure, saying they would go into the next Holyrood election under his leadership "committed to signing no new private finance deals".

He said old PFI schemes and the non-profit distribution (NPD) and Hubco schemes used by the current government were not providing "value for money" and were "raking off millions in profits".

Read more about Mr Leonard's speech here.

Douglas Fraser
Scotland business & economy editor

It used to be the hottest of topics in Scottish politics. Three Holyrood elections ago, in 2003, the BBC's "issues poll" found that the private financing of public services was the most unpopular policy, and fourth on a list of concerns.

Private finance of public services intruded into 2016's Scottish Parliament elections in the kind of intervention that no-one could have foreseen - more than 7,000 Edinburgh pupils were unable to attend school because of a risk that the walls might tumble on them.

Image source, Getty Images

Is this a sign of the failure of the private financing of school buildings? Could the private funding model that is now being used by government ensure this could not happen?

Does conventional procurement offer any better protection against walls falling down?

To get at answers, some other questions might first be useful, to explain private finance of public assets.

Read Mr Fraser's explainer here.

A pair of economists have called for a review of Scotland's public infrastructure financing system.

Jim and Margaret Cuthbert said there were "serious issues" with transparency and the long-term sustainability of the Scottish Futures Trust.

Their report was commissioned by Scottish Labour, who called for a "root and branch review" of the system.

The Scottish government insisted the Scottish Futures Trust delivers value for money and is "fully transparent".

The Scottish Futures Trust (SFT) is an arms-length company which was set up by the Scottish government after the SNP first came to power in 2007, to "deliver value for money across public sector infrastructure investment".

Read more.

Scottish Lib Dem leader Willie Rennie argues the Scottish government can set the standards for how people are employed on public sector contracts in Scotland.

The NPD model has not eliminated excessive profits, he says.

The idea that NPD was "sweeping away" the issues with the PFI scheme has been undermined by various pieces of research, Mr Rennie states.

Turning to the cabinet secretary's point that 75% of public contracts had been awarded to companies with an address in Scotland, the Scottish Lib Dem leader argues many did not bring research or jobs because they were simply headquartered in Scotland.

Image source, Thinkstock

Ahead of the 2016 election, the Federation of Small Businesses said the next Scottish government should appoint a business secretary to represent small firms' interests.

The organisation also wanted the Scottish public sector to spend 10% of its procurement budget through businesses with fewer than 10 employees by 2021.

It argued the move would bring an additional £250m into the country's smallest firms every year.

The FSB also wanted local economies to be treated as a priority, with more investment in communities and better information on how they are performing.

Read more.

Green MSP Andy Wightman says local authorities should be incentivised to use local businesses and suppliers.

Product and service procurement should be based on sustainability, equality and community benefits, not on short-term costs, he argues.

Turning to housing, Mr Wightman says the National Housing Trust model means housing must be sold after a few years and tenants end up evicted.

This is not a solution to provide genuinely affordable houses, he argues.

It is very common for public projects to be run as private enterprises in Scotland, he says, critcising a lack of transparency in particular.

Mr Wightman confirms his party will support Labour's motion but neither of the amendments.

Mr Halcro Johnston says the procurement of ferry services has been a success in recent years and expresses concern about the Scottish government's intention to bring the services in house.

He notes Shetland and Orkney are the top performing local authorities in terms of having SMEs involved in procurement.

The Tory MSP says this helps delivery security of supply.

"I look forward to progress being made on reforming procurement in a sustainable way."

Image source, PA

Construction giant Carillion is going into liquidation after its huge financial troubles finally overwhelmed it.

The UK's second-largest construction company buckled under the weight of a whopping £1.5bn debt pile.

Despite discussions between Carillion, its lenders and the government, no deal could be reached to save the company.

The big concern is over the disruption this might cause, given Carillion holds so many government contracts - from building hospitals to managing schools.

So how did the company get into such dire straits?

Tory MSP Jamie Halcro Johnston says the procurement process is "unnecessarily complex", which creates barriers for SMEs in particular.

Raising the number of SMEs, third sector and supported business involvement was part of the Scottish government's strategy, the MSP notes.

He expresses disappointment that their participation has dropped in the last five years.

Fair work conditions are important as it can help upskill the workforce, he says.

Image source, Scottish parliament

On Carillion, Mr Mackay says the Scottish government has taken steps to support former employees.

He also notes many working on the AWPR site have been transferred to the two other contractors.

Decisions on how and when to involve the private sector must be sensible, the finance secretary argues.

Transparency around procurement is imperative, he states.

Mr Mackay expresses confident that the upcoming report on procurement will paint of positive picture of reforms but agrees to consider where improvements could be made when it is released.

Image source, Reuters

The Scottish government has said contingency plans are in place for contracts affected by the collapse of construction firm Carillion.

Ministers said the plans included the Aberdeen Western Peripheral Road (AWPR), which is being built by a consortium which includes Carillion.

The government said the contract had "a mechanism" for the other joint venture partners to deliver the project.

The construction firm is involved in several infrastructure projects in Scotland, including the electrification of the central Scotland railway line and the extension of platforms at Edinburgh's Waverley Station.

It also has several major contracts for managing public facilities, including West of Scotland Housing Association.

Read more here.

Finance Secretary Derek Mackay says public bodies advertised over 15,000 contracts in the last year, 75% of which were given to firms with a Scottish address.

Statutory guidance published in 2015 means Scottish public bodies must have regard for fair working conditions, he says.

Labour has stood in the way of Scotland having the employment powers to deal with some of these issues, argues Mr Mackay.

He states the Scottish government has done all it can with the powers it has.

Image source, Scottish parliament

Contracts are signed off at St Andrews housing leading to workers exploitation, zero hours contracts, the use of sub-contractors with a history of using gangmasters and agency workers being used on worse terms and conditions than permanent staff, Ms Baillie says.

"That, presiding officer, is the SNP supply chain."

Turning to the Scottish Futures Trust, Ms Baillie says this has led to more private control and private profit, and less government accountability around procurement.

She calls for an urgent review of construction, facilities management and more.

There is little consideration of SMEs despite that fact that would provide a significant boost to local economies, the Labour MSP argues.

Image source, SEPA

Building firm Galliford Try plans to raise £150m from investors after Carillion's demise left a cash shortage on the Aberdeen Bypass project.

The company announced the plan last month, revealing a £25m exceptional charge in its half-year results.

Bypass partners Galliford Try and Balfour Beatty must now cover the costs arising from Carillion's collapse.

They said the fundraising would ensure they did not have to divert money away from other projects.

Carillion went into liquidation in January, after talks between the company, its creditors and the UK government failed.

Read more here.