Economic Activity of Public Bodies (Overseas Matters) Bill

Debate between Lord Deben and Baroness Noakes

Committee stage
Tuesday 7th May 2024 Lords Chamber

[Lord Deben (Con)]

My Lords, I remind the House of my declaration of interests. It is exactly from that position that I wish to ask a fundamental question of my noble friend. We spend an awful lot of time trying to get companies not to be complicit with the Government of Myanmar, for example, because of their actions. We are proud that there is a whole series of decent private and public companies that make decisions on those grounds. Are we sure that we should be in a position in which we will encourage public and private companies to make decisions on those grounds but specifically exclude the right of elected bodies—and some non-elected bodies, because they have been designated as public bodies—to make those decisions? I find that a very difficult position to support.

Part of the problem is that we are now in a complex and extremely uncertain area, which is why all the amendments before us are of considerable importance. They say that we are putting public bodies—we are not quite sure what they are—in a position where they do not know quite how they should behave, and we are opening them up to the opportunity of people taking them to court because the decision they have made has not been in conformity with what the plaintiffs suggest should have been their decision in relation to international law. At the same time, we are saying to them that they should not take into account the same things most of us would try to get private companies—and public companies, in that sense—to take into account.

We are getting into a real mess here, and I do not see that this is a carefully written Bill. Indeed, my last point is simply that this is a terribly badly written Bill. I do not know who thought it through. We have now had a series of people taking rather different views—as a matter of fact, I am unhappy about the particular way in which Israel is treated in the Bill. We are all taking different views, but we are all saying that the Bill is so badly written that people will not know how to deal with it.

This is a central concern for this House; we need legislation through which we can explain to people what is happening. If I may say to the noble Lords who put the amendments forward, it took a bit of listening to understand what their problem was, to put it bluntly. How on earth are we going to have public bodies coming to decisions when they have to read that to start with to understand what mess they might be in? I hope my noble friend will help me to understand how this Bill will be simple enough for it, first, to be enforced and, secondly, to be proper. At the moment, I feel it is improper, because it is so badly drafted.

[Baroness Noakes (Con)]

My Lords, we should get this into perspective. I say to my noble friend Lord Deben and indeed to the noble Lord, Lord Hain, that this Bill is handling one particular aspect: fundamentally, boycotts and divestment decisions. There is a whole range of law in the Procurement Act, which we passed last year, which sets out the UK’s version of the procurement rules we used to take from the EU—they have been modernised for our own purposes, but they are still hugely complicated.

For a very long time, the Government’s own procurement advice to public bodies was that:

“Public procurement should never be used as a tool to boycott tenders from suppliers based in other countries, except where formal legal sanctions, embargoes and restrictions have been put in place by the UK Government”.


In many ways, this Bill provides a more liberal approach to that blanket proposition, which was in a government procurement policy note and which has been governing procurement for a long time. We need to see this Bill in context and in the light of the rather narrow area it is trying to deal with.