Plans to set non-white ethnic quotas for companies bidding for Government contracts give Birmingham firms an unparalleled competitive business edge over its rivals according to Aaron Reid, executive director of Birmingham Professional DiverCity.

He said: "This move robustly supports our position that considering diversity as an integral part of your business plan makes perfect sense. It gives business a vital competitive edge. By managing and valuing race diversity, companies put themselves in the ideal position of being able to take advantage of the public sector procurement process as well as the other proven benefits of a diverse workforce such as greater creativity and innovation and accessing international markets such as India and China.

"Though much of what has been said and reported upon is really only restating existing legislation, the new element is the formal pilot scheme, and this gives companies in Birmingham and the West Midlands a definite advantage.

"This is not - and should not be - about quotas in any way, shape or form. It is important that employers understand the clear economic drivers behind the reasons for doing this and that it makes sense to recruit from the widest possible pool of talent.

"Employers must recognise that the best of available applicants does include people from minority ethnic backgrounds.

"Twenty six per cent of ethnic minorities aged 18-24 have, or are, studying for a degree compared to 14 per cent of the white population. So this is not about lowering standards or doing anybody a favour other than the companies themselves."