UK lobbies US over Iraq contracts
Foreign Office international trade minister Mike O’Brien is going to Washington to lobby for UK companies to get a bigger share of contracts on offer for the reconstruction of Iraq.
The delegation to the US will also include Brian Wilson, Tony Blair’s special representative on overseas trade.
US firms have won the majority of big contracts to rebuild the shattered state and UK business leaders have reportedly become frustrated with the allocation of big Iraqi contracts to date.
Mr O’Brien is expected to put the case for UK companies to win a bigger share of the second wave of smaller deals and sub-contracts that will be on offer for the reconstruction of Iraq.
The World Bank is also providing a briefing about Iraq to UK businesses next month.
The visit by the Foreign Office minister to the United States was welcomed by the Confederation for British Industry.
“The most recent contracts have unfortunately overlooked British firms and it would be disappointing if this were not corrected when the next major round of contracts are awarded,” said Andy Scott, the CBI’s head of international competitiveness.
As the Iraqi administration becomes responsible for awarding more contracts later this year, UK companies are expected to gain a larger share of contacts on offer. However, business leaders have warned that concerns over safety and the costs of protecting staff could prove prohibitive.
The Guardian has reported that Whitehall is becoming increasingly frustrated by UK firms’ failure to secure lucrative contracts in Iraq.
The paper quotes a memo, from Mr O’Brien, calling on ministers to do more to help win the lucrative contracts. “All ministers in the government who are in frequent touch with their US opposite numbers need to ensure that the US administration are in no doubt about the political importance we attach to UK firms being seen to contribute actively to the reconstruction process,” it reads.
Admiral David Nash, who heads the Coalition Provisional Authority’s programme management office in Baghdad, announced this week there were more than 2,300 projects worth $18.6 billion (£9.8 billion) in Iraq.
