Procurement Bill [Lords]

Debate between Bill Esterson and Jeremy Quin

2nd reading
Monday 9th January 2023 Commons Chamber

[Jeremy Quin]

The right hon. Member refers to Team Resolute, and I am delighted that it won the tender. The majority of that work will be undertaken in British yards—[Interruption.] We could continue to make this a discussion on defence procurement, but I think the rest of the House wants to discuss the Bill before us, as I certainly do.

[Bill Esterson (Sefton Central) (Lab)]

rose—

[Jeremy Quin]

But before doing so, I give way to the hon. Gentleman.

[Bill Esterson]

The Minister says that he is here to talk about a modern procurement system for the UK, but The Guardian is saying today that a Conservative peer who advised the Government during the pandemic helped a company to secure a £50-million contract after being introduced to the firm by another peer with financial interests in that company. Can the Minister tell us exactly which clause in the Bill he is putting forward today would have prevented that extreme example of cronyism from happening?

[Jeremy Quin]

Alas, it is a great loss to me, but I have not read The Guardian today and I am not in a position to comment in detail on what the hon. Gentleman has said. If he goes through the Bill in detail, as I and other Members have, he will find the parts that refer to declarations of conflicts of interest. These are issues that we will be significantly improving through the Bill to ensure that there can be no doubt that integrity lies at the heart of our procurements. That has always been the case, but it will be even more entrenched as a result of the provisions of this Bill.

[Bill Esterson]

rose—

[Jeremy Quin]

I hope that the hon. Gentleman will allow me to make some progress. If I give two chances to every Member, we will be here for a much longer time.

There are currently hundreds of procurement regulations spread over four different regimes for different types of procurement. We will consolidate them into a single regime. This will remove duplication and create one rulebook that everyone can understand and use, with sectoral differences only where absolutely necessary, such as for reasons of defence or national security.

--- Later in debate ---

[Jeremy Quin]

I recognise the frustration of the company in my hon. Friend’s constituency. He should take up the specifics of that with my right hon. Friend the Health Secretary, but more generally he raises an extremely valuable point, not just in the health sector, but more broadly, about the ease of doing business with Government for SMEs. The Bill contains a range of measures on this: it puts a duty on procurers to ensure that they are considering the specific needs of SMEs; it ensures there is a 30-day payment period; it ensures that pipelines are put out well in advance; it says, “You don’t need to be insured to do the job before you have won it”; and, above all, it provides for one entry point and allows companies to set out in one place what they are as a smaller company before they even start thinking about the tender they are applying for. All those are incredibly valuable components to make it easier for an SME to thrive.

[Bill Esterson]

rose—

[Jeremy Quin]

I will not give way at this stage. I thank the hon. Gentleman for the offer, but I think I should be making a little more progress.

In delivering value for money, the Bill will require procurement teams to take account of national priorities, as set out in a new national procurement policy statement. These are national priorities such as improving supply chain resilience, enhancing skills, driving innovation and, of course, protecting the environment. Procurers will be able to give greater weight to bids that support such priorities. I know that in the other place there is a strong desire to pursue particular interests and include a range of policies in the Bill. The Government instead believe that that is a purpose of the NPPS. We want to keep this legislation as clear and simple as possible; the intention is that we allow procurement to keep pace with evolving policy priorities and we do not swamp contractors and SMEs in paperwork.

The Bill will accelerate spending with small businesses. New duties will require contracting authorities to have regard to SME participation. Public sector buyers will have to look at how they can remove bureaucratic barriers and level the playing field for smaller businesses. Commercial frameworks will be made more flexible, with the new concept of an open framework, which will allow for longer-term frameworks that are reopened at set points, so that small and emergent businesses are not shut out for long periods. These measures build on existing policy, which allows procurers to reserve competitions for contracts below the thresholds for SMEs and social enterprises based in the UK, taking full advantage of the new freedoms following our exit from the EU.

We are determined to improve the prompt payment of small businesses in our supply chains. As I have mentioned, 30-day payment terms will apply contractually throughout the public sector supply chains and be implied into the contract, even when not specifically set out. The Bill provides for new improved procedures for the award of public contracts, supported by greater flexibility. Buyers will be able to design procurement processes that are fit for purpose and will create more opportunities to negotiate with suppliers so that the public sector can work in partnership with the private.

We will also take tougher action on underperforming suppliers.