Public Procurement

Debate between Lord Spellar and Dave Doogan

Monday 13th May 2024 Commons Chamber

[Dave Doogan (Angus) (SNP)]

The SNP does not oppose the draft Procurement Regulations 2024. Their context is a deeply unwelcome Brexit reality from Scotland’s point of view, but they are largely uncontentious and little more than one would expect under the framework established by the Procurement Act 2023. However, that framework is unsatisfactory to some extent, not for what it gives effect to but for what it does not safeguard against. The Act fails to mandate sufficient tax transparency for large multinationals bidding for public contracts—a profoundly basic requirement for those seeking to profit from public expenditure to be transparent about their own tax position and, therefore, it is a significant failure in the framework. The Act also fails to appropriately protect workers’ rights—never more important for workers in the UK, who face a growing threat to their employment rights, having been stripped of EU protections. It does not properly uphold the priority of social benefit from such contract awards.

Vitally, the Act fails to close the loopholes that allowed for the appalling Tory VIP lane for the procurement of personal protective equipment during the pandemic. If there is no institutional learning from that glaring and seismic misappropriation of public funds, it prompts the question of whether the omission is by dint of incompetence or by design, given the repeated denials of this Tory Government with respect to that particular crisis.

[John Spellar]

Some underlying reasons for the PPE failures were the lack of industrial capacity, the complete inability to communicate with industrial capacity, and the endless reliance on middle men who rushed off to China. Firms in this country could have done the job but had no way of getting access, as back-door routes were used, which dominated a lot of the newspapers.

[Dave Doogan]

The right hon. Member made a number of important points, not least that we allow the atrophy of our industrial base at our peril, particularly in times of crisis. It unduly compliments the Government to suggest that there was only an inability to communicate with ordinary firms in the United Kingdom—I am afraid that the circumstances around the Tory VIP lane were far more sinister than that. With that, I will make some progress.

A third of public expenditure—some £300 billion annually—is spent on public procurement, so it is essential that its regulation is not simply minimalist administrative housekeeping, but an ambitious plan to improve public procurement continuously. In the absence of any such ambition in these regulations, we can clearly see the sloping shoulders of a dying Administration content to pass on their responsibility for forging a public procurement system that benefits taxpayers, local suppliers, industry and service users alike to the next UK Government—God help us.

The SNP and Scotland more generally must, under the current constitutional settlement, concede to be bound by the regulations, for the time being at least. In so doing, however, we note that the Tory Government promised in 2019 to get Brexit done, yet they are still fumbling around with fundamental and basic legislation five years later, trying to implement what was their pipe dream, but is a bona fide nightmare for ordinary people across these islands. Still further regulation will be required to give full effect to the Procurement Act 2023, but it seems unlikely that it will be the same Government standing there to advance it.