Coronavirus Bill

Debate between Earl Howe and Lord Adonis

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Wednesday 25th March 2020 Lords Chamber

[Earl Howe]

The noble Baroness makes a very good point and one that I was familiar with in my previous role as a Health Minister. She is absolutely right: agency workers form a key part of the health and social care network and in other areas of our economy. I can assure her that they will not be overlooked.

[Lord Adonis]

My Lords, the Minister did not deal with the point about why the statement on this crucial issue will not be made in Parliament and be subject to debate in Parliament.

[Earl Howe]

My Lords, as the noble Lord rightly said, Parliament will not be able to debate any package of measures for the self-employed which my right honourable friend may announce until it returns on 21 April. That is a statement of the obvious, but it does not preclude parliamentarians from making appropriate representations to the Government once Parliament reconvenes. It will not be too late to do so at that point. One reason why my right honourable friend the Chancellor has not yet made an announcement is his determination to make sure that any scheme for the self-employed— which would inevitably be more complicated, as my noble friend Lord O’Shaughnessy said—is workable, clear and, above all, fair, without any danger of moral hazard. The measures already announced for those in employment have been widely welcomed. We do not want anything different to happen for any further measures.

[Lord Adonis]

Is not the reason why Parliament meets precisely so that it can make representations to the Government?

[Earl Howe]

Absolutely. That is what I indicated that parliamentarians, including your Lordships, would be able to do once we return from the Easter Recess. I suggest that, at that point, it is not too late to influence the Government in any announcement that may or may not have been made.

Schools: Cadet Expansion Programme

Debate between Earl Howe and Lord Adonis

Tuesday 18th June 2019 Lords Chamber

[Earl Howe]

That is certainly a risk. It is one that we are alive to and determined to prevent.

Head teachers of all the new schools that have come forward have done so because of the benefits that they see for their pupils. Many head teachers can give testimony to the positive impact of their cadet unit on attendance, behaviour and discipline. Head teachers have commented, for instance, that, “the pupils are more confident and attendance has improved”, and that their cadet unit, “brings out self-discipline, team work, working together, ambition and wanting to be the best”. Head teachers also speak of how others look up to the cadets in their school and how their cadets provide excellent role models for other pupils.

[Lord Adonis]

My Lords, I am sorry to intervene and break up the harmony that had lasted until the Minister’s speech. He said a moment ago, rather to my concern, that his department is setting an upper limit to the number of state schools that will be able to have Combined Cadet Forces, and that the capacity of the Armed Forces to manage more than 500 units was not there. Is he aware that that will be greeted with widespread disappointment in the state-school world? Effectively, he is saying that private schools, most of which have CCFs, will maintain them and a relatively small number of state schools will get them—that is, the 300 or so that will get them as a result of the expansion programme—but the 3,000 state schools that do not have Combined Cadet Forces will have to make do with Community Cadet Forces because the MoD says it is not capable of taking on more responsibilities. Could he indicate to the House an open mind about keeping this issue under review? I can tell him that his remarks will be greeted with very serious disappointment in the state-school world.

[Earl Howe]

My Lords, this is a time-limited debate and I have lots to say, but I take the point made by the noble Lord, Lord Adonis. I am not saying that 500 is the absolute upper limit; of course, we keep that under review. We continue to push the envelope and would always want to do that in a geographical area where we have capacity to increase the number of cadet units in schools. I was simply pointing out that capacity is a challenge, which is why we are looking to increase numbers in the particular kinds of schools that we are targeting, but the figure of 500 is not fixed in stone. I hope that corrects any impression I gave earlier.

The noble Lord, Lord Tunnicliffe, mentioned the Ecorys report. It is several years old and we regard it as having been superseded by newer studies, such as that currently being undertaken by the University of Northampton. So far, this work has been published in two interim reports which clearly set out the benefits of the cadet experience. This research gives head teachers, who have a crucial role to play in enthusing parents, pupils and staff about the benefits of a cadet unit, the evidence to convince others of the value of having a cadet unit in their school.

However, despite the clear benefits, schools can face significant challenges and barriers to establishing and running a cadet unit, particularly in relation to funding and human resources. Unfortunately, along the way towards meeting our Cadet Expansion Programme target, a number of new units have not flourished and have had to close. These closures have occurred for a variety of reasons which neither the Ministry of Defence nor the Department for Education has the leverage to influence.

The noble Baroness, Lady Smith, raised a number of important points, but one I would like to pick up on is that the key to the success of a cadet unit is the enthusiasm of the head teacher. If a head teacher who is in favour of cadets is replaced by one who is not, there is a clear risk to the survivability of the unit. Head teachers must also be able to attract and retain sufficient capable and motivated individuals, either from the staffroom or beyond, to run the cadet units. Given the responsibilities and workload of teachers, this is not always easy—a point made by the noble Lord, Lord Adonis. We also recognise that difficult decisions sometimes have to be made as head teachers balance priorities while needing to live within their budgets.

We are therefore continuing to support schools through the cadet bursary fund which provides additional money, where possible, to meet the costs of cover for teachers who are away on courses training to become adult volunteers, and helps schools afford to employ staff to administer their cadet units. The noble Lord, Lord Tunnicliffe, asked how much money has been spent through this fund. As at 23 May, the figure I have for money paid out since December 2014 is just over £5,900,000.

One thing that has frustrated schools in the past has been the perceived lack of recognition that they receive, despite the significant commitment and effort involved in establishing a cadet unit. I am sure that head teachers will welcome Ofsted’s new framework, which places clear importance on personal development and positive attitudes. I want to take this opportunity to thank all the school staff, and others, who volunteer to support their cadet unit. We encourage school staff to take part in running the cadet unit so that it becomes an integral part of the school, but there is also an important role for adults from outside the school community.

The noble Lord, Lord Tunnicliffe, asked whether we could consider introducing a review of awards for cadets and adult volunteers to ensure they are recognised in the honours system, particularly the volunteers. Where possible, and in the majority of cases, cadet and adult volunteer courses already result in recognised national body awards, such as the Duke of Edinburgh, the Royal Yachting Association and St John Ambulance. This ensures that they are recognised outside of cadets and assists cadets with their CVs.

Adult volunteers are recognised through the honours system and are included in the military honours system. While there is no quota, when compared with regular and reserve Armed Forces personnel, cadet adult volunteers do well. Adult volunteers who do not wear uniform are recognised through the civilian honours. They also do well. Adults can receive recognition through various other awards, such as the lord-lieutenant awards or RFCA awards. The mechanisms are there; we just need to remind people that they should nominate deserving individuals.

I also thank all those schools with established cadet units that have partnered with a state school to enable them to offer the cadet experience to their pupils. This is of particular value where staff in schools setting up new units have no prior military experience and helps to transfer important skills. To date, of the schools that have established a new cadet unit under the expansion programme, over 70 are benefiting from such partnerships.

I hope noble Lords will allow me a little extra time, since we have some in hand, to finish my speech, bearing in mind the interventions we have had. The noble Lord, Lord Tunnicliffe, asked how we encourage greater participation by young females and those from BAME backgrounds. We do not have targets for either category and the associated numbers are not measured. Any cadet unit, self-evidently, will be composed of young people who are representative of the local area. Having said that, areas with a high BAME population often correlate with areas of high deprivation.

My noble friend Lord Lingfield asked how we can build on what we have achieved, as did the noble Baroness, Lady Smith, and others. The Government’s ambition is to increase cadet numbers in school cadet units to 60,000 over the next five years. This can only be good for our young people, but as we work towards this ambition, we must ensure that legacy schools continue to thrive. We must also continue to support our 3,000 community cadet units across the UK and ensure that we keep the offer relevant, up to date and appealing to today’s young people. I am pleased that improvements to a number of cadet training facilities funded through the programme are also available to cadets from the community cadet forces. I can reassure the noble Baroness, Lady Smith, that the single services are committed to sustained funding of cadet units.

Cadet units have a vital role to play in building the character and resilience of young people. The Government remain committed to supporting all cadets and the adult volunteers, who are the lifeblood of the cadet units. I firmly hope that in the coming years, we can build on the success we have achieved to date and continue to give many more young people the life chances they deserve.

Public Procurement (Amendment etc.) (EU Exit) Regulations 2019

Debate between Earl Howe and Lord Adonis

Monday 4th February 2019 Grand Committee

[Earl Howe]

No, my Lords. These regulations are designed to ensure that the experience of businesses using the public procurement system is virtually unchanged from today. Our aim has been to produce as smooth a transition as possible—even in the event of no deal. Of course, as the noble Lord, Lord Adonis, has pointed out, there will be changes in the wider context of bidding in the European market; I will come to that in a minute.

The noble Baroness, Lady Hayter, asked what would happen if exit day was deferred. If that were to happen, and the withdrawal Act amended, that would feed directly through into these regulations, so no specific amendment would be required for that. She also asked me about the GPA thresholds and how they will be published. To update the thresholds, the Minister for the Cabinet Office will need to exercise the new regulation-making powers conferred by this instrument. The new thresholds will, therefore, be reflected in the public procurement regulations themselves and be publicly available and notified by procurement policy notice.

The noble Baroness, and the noble Lord, Lord Wallace, asked about the GPA. As I said in my opening remarks, the UK currently participates in the GPA via its EU membership. We need to accede to the GPA in our own right to maintain legally guaranteed access to public contract opportunities that the GPA provides. The offer that we have made to GPA parties maintains our existing commitments in the UK part of the EU schedule. The European Union (Withdrawal) Act 2018 aims to ensure as much continuity as possible. It is, therefore, the UK’s intention to join the GPA in its own right and, ultimately, to transpose the other international agreements between the EU and third countries. Accordingly, all suppliers should continue to be treated equally and fairly through open competition. Keeping our procurement market open to international competition clearly ensures better value for money for the taxpayer and facilitates UK suppliers being offered reciprocal rights to participate in procurements abroad.

Noble Lords asked me what would happen if our GPA accession did not take place by exit day. We have made good progress in our accession process and, as I said, we have received agreement in principle to our GPA market access offer. Despite this progress, we have taken the necessary precautions in the event that the UK’s application to accede has not been fully completed by exit day. In this scenario, economic operators established in territories and states that are GPA parties would no longer have the guaranteed access and associated remedies that they currently have in relation to UK public procurements. One of the amendments in the public procurement regulations guarantees continued access, rights and remedies for suppliers from GPA countries for a time-limited period from EU exit. This approach has been taken to mitigate the risk of a short gap in GPA membership. This will facilitate UK suppliers being offered reciprocal rights to participate in procurements abroad.

The noble Lords, Lord Wallace and Lord Adonis, asked about the attitude of other countries—New Zealand and China in particular—to what we were doing in relation to the GPA and standards. New Zealand has, in fact, accepted our final market access offer. It continues to be interested in other aspects of the UK’s WTO membership. China’s application has been in train for many years and I am advised that it is unlikely to be completed in the near future. There will be no change to the standards that we currently operate. A draft decision inviting the UK to join has been sent to all GPA parties. It is expected that the formal invitation will be issued at a committee meeting this month. Parties were interested in how the decision described the UK’s relations with the EU during the transition period.

The noble Lord, Lord Wallace, also asked about oversight carried out by the Competition and Markets Authority. This instrument does not provide for oversight by the CMA of the public procurement regime. Aggrieved suppliers will, however, continue to be afforded the remedies provided for in the regulations. In that way, contracting authorities and other entities will be held to account by the courts.

The noble Lord, Lord Adonis, asked various questions about the Official Journal of the European Union and the publication of contract opportunities. In a no-deal scenario, the UK is unlikely to be afforded access to the Official Journal for the purposes of advertising public contracts. That is simply a facet of no longer being a member of the EU, and that is why we have developed our own system to which UK bidders, EU bidders and bidders from the rest of the world will have access and in which they will be able to see UK public procurement opportunities. UK authorities may continue to advertise some types of procurement opportunity in the Official Journal—where the UK is participating in EU research and development projects, for example—though we anticipate that being a relatively rare event.

[Lord Adonis]

Is the noble Earl saying that to advertise in the Official Journal of the European Union you are required to be an EU member? Could he say—or follow up in writing afterwards—whether Norway and Switzerland, countries with very close economic associations, including membership of some of the economic institutions of the EU, do or do not advertise public procurement opportunities in the Official Journal? If it is possible to advertise in the Official Journal without being an EU member, it would be good to know whether the United Kingdom could continue to do so, since it would be a big advantage to be able to advertise our public procurement opportunities in that way.

[Earl Howe]

I take the noble Lord’s point entirely. I need to seek advice on the question that he asked me about Switzerland and Norway, as I do not have that information to hand, but clearly, to the extent that we are allowed to avail ourselves of the OJEU in any public procurement context, it will be an advantage. However, I am advised that the new UK e-notification system which is being developed will be accessible by the same portal that suppliers use at the moment. To that extent, the process which they go through will feel quite normal. I can advise the noble Baroness, Lady Hayter, that the new system is on track to be in place by 29 March 2019.

--- Later in debate ---

[Lord Adonis]

I raised the issue of state aid.

[Earl Howe]

I have just alighted on my note to that effect. The noble Lord, Lord Adonis, essentially asked whether the implication of the Explanatory Memorandum is that the UK could start flouting the EU state aid regime. On leaving the EU, the UK will no longer be bound by the Treaty on the Functioning of the European Union, so economic operators will not be subject to the EU’s state aid regime any more than a third-country supplier receiving state subsidies would be. The UK has developed its own state aid regime, but it is important to remember that this instrument does not disapply the state aid rules. Rather, contracting authorities will simply no longer be required to look behind an abnormally low tender to investigate whether a bidder was in receipt of unlawful state subsidies. That is because the UK will no longer be a participant in or bound by the EU’s single market and competition rules.

Defence and Security Public Contracts (Amendment) (EU Exit) Regulations 2019

Debate between Earl Howe and Lord Adonis

Monday 4th February 2019 Grand Committee

[Lord Adonis]

If the noble Earl will forgive me, I think I follow what he is saying, but I invite him to say whether I have understood him correctly. Because we will no longer be part of the EU procurement regime, we will have no statutory obligation to make these contracts available to bidders from the EU, but we intend to continue to invite applications from those countries. Is he saying that, in practice, for suppliers from the EU—leaving aside those from outside the EU about which we have security concerns—there will be no change in the bidding regime as a result of a no-deal Brexit? If that is not correct, and there will be a change, could he tell the Grand Committee what that change would be?

[Earl Howe]

For UK Government defence procurements, the process from the point of view of an EU supplier will be no different. What it will experience is the need to bear in mind two separate portals or bidding channels; one is the UK e-notification system, which I mentioned earlier, and the other is OJEU. It will need to keep an eye on both if it wishes to participate in the Europe-wide market; in using that phrase, I include the UK as still being a European country, even if not a member of the EU.

[Earl Howe]

That is technically right. It is our policy to maintain access for EU member states—and indeed, non-EU states—in many, if not most, instances of procurement. A good example might be the fleet solid support ships. We invited tenders from all over the world to build those ships and that should provide the best value for money. We all hope that UK suppliers will feel confident in bidding for that contract, but we wish to benefit the taxpayer as well as the Royal Navy and the process will be an open one.

To answer one point which the noble Lord, Lord Adonis, alluded to, there will of course be opportunities to reform the defence procurement rules after we leave the EU. The current rules are generally seen as out of date, compared to the PCR 2015. We have the opportunity to take a fresh look at what is needed for defence procurement—

[Lord Adonis]

What is the PCR?

[Earl Howe]

They are the Public Contracts Regulations 2015. This will involve public consultation to ensure that we strike the best balance between value for money and protecting national security. However, I emphasise that that is a long-term project and does not relate to the regulations before us today.

The noble Baroness, Lady Smith, asked about exit day in the event of a deal. As with the non-defence procurement that we debated earlier, any amendment to exit day as a result of a deal will track through from the EU withdrawal Act to these regulations. Therefore, the no-deal element of the amendments will not come into force.

I hope I have explained clearly the effect of Article 346 and why we have replicated it in the regulations but, just to make doubly clear, it is to ensure we can continue to disapply the procurement rules when required to protect our national security interests. For example, if we did not do so we would be required to advertise our sensitive procurements as a matter of domestic law. In so far as I have not answered noble Lords’ questions I will certainly do so in writing, as for the previous debate, but I hope that my responses have clarified any points of uncertainty.