TOO much public sector work in Hull is being done by out-of-town firms, a leading civil engineering businessman has said.
Local highways firm MB Roche and Sons is on the city council's approved contractor list.
But director Daniel Roche said the use of businesses from elsewhere made expansion difficult.
He believes it means money is taken out of the city economy.
Mr Roche said: "There are so many companies in Hull that can do these jobs.
"It must always come down to the price and they don't see the extra benefits of giving it to local firms.
"We're getting held back and not taking on graduates because the jobs are going to other people."
Last month, the council picked publicly listed firm Galliford Try to carry out £159,000 of work in Alfred Gelder Street, ahead of MB Roche.
Although the authority is required by competition law to treat all firms equally when tendering, the director would like to see things done differently.
Businesses from other parts of the UK often claim to be creating temporary construction jobs in the area.
However, Mr Roche believes there can be a certain amount of misdirection.
He said: "People in our industry will be pricing a job and all of a sudden it will go to a company in another city.
"A lot of times, firms win contracts by saying they're going to use local contractors, but nobody checks at the end."
There is no suggestion Galliford Try has done anything wrong.
Tim Rix, who chairs the City Leadership Board, believes the council is committed to supporting East Yorkshire firms.
He said: "The City Leadership Board has been working very closely with Hull City Council over recent months in relation to understanding, informing and contributing to their procurement approach.
"We have seen the council is committed to delivering local benefits where they can, and have shown they are delivering substantial benefits to local companies and are engaging widely to explain to local companies how they can secure contracts with the council."
Town clerk Ian Anderson manages authority procurements.
He said 56 per cent of spending was with "local suppliers" – the fourth- highest in Yorkshire.
Mr Anderson said: "The council continues to work to support local organisations in their bids for contract opportunities, holding engagement events, meet the buyer days and providing advice and guidance on tender bids.
"We have published a Procurement Forward Plan on the council's website, which enables companies to identify future opportunities."
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