Procurement Bill [HL]

(Limited Text - Ministerial Extracts only)

3rd reading
Tuesday 13th December 2022 Lords Chamber

Moved by

[Baroness Neville-Rolfe]

That the Bill be now read a third time.

[The Minister of State, Cabinet Office (Baroness Neville- Rolfe) (Con)]

My Lords, before the Procurement Bill is read a third time, I will deal with the legislative consent aspects. Most of the provisions apply to England, Wales and Northern Ireland only, and a few also apply to Scotland. Throughout the preparation and passage of the Bill, we have been working closely with each of the devolved Administrations. As noble Lords will know, there are provisions in the Bill which engage the legislative consent process in the Scottish Parliament, Senedd Cymru and the Northern Ireland Assembly. Currently, the devolved Administrations have not granted a legislative consent Motion; however, we are engaging constructively with officials and Ministers on addressing outstanding points, and I reassure noble Lords that the Government will continue with this engagement as the Bill is introduced into the House of Commons. I beg to move.

Bill read a third time.

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Moved by

[Baroness Neville-Rolfe]

Clause 110, page 72, line 35, leave out “11([subsection removed])” and insert “1(4)”
Member’s explanatory statement
This amendment would correct the cross-reference so it refers to the definition of “centralised procurement authority”.

[Baroness Neville-Rolfe (Con)]

My Lords, I will move a minor technical amendment to Clause 110 in my name. I know how keenly noble Lords have scrutinised the Bill, and I am therefore confident that they will have noticed that, in the definition of “equivalent body” in Clause 110(6), the very incongruous words, “[subsection removed]”, appear in square brackets. I am informed that this cannot be amended administratively to make the appropriate cross-reference. Therefore, in the interests of sending the Bill to the other place in a form which can be understood, I have tabled an amendment to insert the missing cross-reference, which is to Clause 1(4). I beg to move.

[Lord Fox (LD)]

I thank the Minister because I have been worrying myself to death about this issue and clearly welcome her amendment.

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Moved by

[Baroness Neville-Rolfe]

That the Bill do now pass.

[Baroness Neville-Rolfe (Con)]

My Lords, having taken over this crucial Bill from the now Leader of the House, I have had the pleasure of hearing a range of informed contributions from across the House on it. Noble Lords have offered a rich and stimulating debate in Committee and on Report, and I thank them for engaging constructively with what has at times been a challenging piece of legislation. As ever, I thank noble Lords for their forbearance with what I fear may be a record number of government amendments tabled in the Lords to help the Bill function optimally.

My objective in leading this Bill has been to ensure that it encourages a more open, effective and transparent public procurement while encouraging economic growth. One in every £3 of public money—some £300 billion a year—is spent on public procurement, yet at present we must wrestle with over 350 different procurement regulations across four different regimes. Noble Lords know my passion for paring back needless bureaucracy, in particular removing barriers for SMEs, and I know they have welcomed the new provisions I instigated to require contracting authorities to think about SMEs routinely. We have also put provisions in the Bill for the new single central online platform, which will underpin the new system and achieve a real step change in transparency.

This simplification of regulations is not at the expense of stringent, well-thought-out measures ensuring that procurement is done safely and appropriately in the relevant sector. Noble Lords will be aware of the national procurement policy statement, the procurement review unit and the debarment list. All these measures will make public procurement safe and ethical and take into account wider factors that I know many noble Lords right across the House care deeply about. These reforms are intended to provide a shift towards a modern and flexible procurement regime and deliver better outcomes for taxpayers, service users and the businesses and social enterprises involved.

Before I conclude, I would like to make noble Lords aware of an error on my part during the second day of Report, which I must correct. Amid the highly technical debate, I wrongly said that the national security exclusion ground was mandatory. In fact, it is discretionary. This is because it is desirable to have flexibility for contracting authorities considering exclusion on this ground, depending on the specific circumstances involved—for example, the nature of the threat to national security and/or the risk to the contract being tendered.

In concluding, I thank my noble friends Lady Bloomfield and Lady Goldie for their support on this Bill. I also extend particular thanks to my noble friends on the Back Benches for their contributions, challenge and support. I am very grateful to noble Lords on the Front Benches opposite and on the Cross Benches for their time and constructive engagement from the day I took the Bill over from my noble friend the Leader of the House. Finally, I thank the officials who have worked on the Bill, particularly Sam Rowbury, Ed Green, the previous Bill manager Phillip Dunkley and the current Bill manager Katrina Gajewska, as well as the wider official team, others supporting noble Lords across the House and my private office. I wish the Bill a safe passage through the other place.

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[Baroness Hayman of Ullock (Lab)]

My Lords, I am sure that noble Lords will be very surprised to know that I thank my noble friend Lord Coaker for supporting me and sticking with the Bill all the way through. It has been a long haul, and I think we are all pleased we are at Third Reading.

I thank the noble Lord, Lord True. At the beginning of the Bill, he gave me an awful lot of time, as did his officials, when we had some serious concerns. As the noble Lord, Lord Fox, mentioned, we had a bit of a sticky start. The officials worked incredibly hard to get us to a position where we could properly debate the issues in Committee; at the beginning, we were not in that position, unfortunately. We all congratulated the noble Lord, Lord True, on his promotion, but we were also delighted as a Committee when the noble Baroness took over this Bill, because she was genuinely interested in what we were debating and genuinely understood what we were trying to achieve. I think she worked very hard and brought in some important improvements to the Bill, having listened to Committee. I thank her for her time, efforts and energy in helping us all to come out with a Bill that was better than what we had at the start.

I also thank the noble Lord, Lord Fox, and other Members who took part for the constructive work we did going forward on the Bill. It is much appreciated. I think all Members of the Committee would agree that the Bill we have sent to the other place is in a much better state than it was when we received it. I thank everybody very much for their hard work. I hope the other place considers our amendments seriously—I think they make the Bill better—and perhaps brings some further improvements that we can look at when it arrives back. It has been a pleasure to work on the Bill, but I am pleased we are now moving on.

[Baroness Neville-Rolfe (Con)]

I would like to briefly thank all those who have spoken. I agree with them on almost everything, and I also agree that we should commend my noble friend Lord True, now the Leader of the House, perhaps partly because of his achievements in this area. It has been a great pleasure to become a gamekeeper for the Government rather than be a poacher for the Back Benches. My noble friend Lady McIntosh of Pickering raised the devolved issues; of course, we hope that these things can be amicably resolved in the other place. Procurement is a devolved issue—the Scottish Government have not joined the UK Government’s Bill and will be maintaining their own legislation. Contracting authorities in Scotland will therefore not be bound by the Bill other than to enable their use of frameworks, dynamic markets and joint procurement. They are operating their own regulations, having transposed the EU directives into their own statute book. There are some outstanding issues, particularly with the Scottish Government. We are pursuing those, and I hope they will be resolved before we see the Bill again.

Bill passed and sent to the Commons.