(4 years, 2 months ago)
Grand CommitteeMy Lords, I shall speak to Amendment 6 in my name, but before that I want to speak more generally on Amendments 1 to 5. These all refer to Clause 1 and the UK’s future participation in the Agreement on Government Procurement. It should be noted that the GPA has been an important form of market access that has come with our membership of the European Union. As the Minister and others have said, it opens up the possibility of access for UK companies to about £1.3 trillion of government contracts. One would expect Her Majesty’s Government to talk up this side of the equation.
The expectation is that the UK will enter the GPA at the end of the year, and I understand that the Government are seeking more or less to reproduce the access that we have enjoyed thanks to our European Union membership. Perhaps the Minister can give us an update on the timetable and whether there may be any changes to the terms that we might expect of the GPA at the turn of the year.
As I said, the external element of GPA is extremely important, but the flipside of that external access is that international businesses have access to about £67 billion of public service contracts in the UK every year. As we heard from the noble Lords, Lord Lennie, Lord Hain and Lord Hendy, the noble Baroness, Lady Blower, and my noble friend Lady Burt, these amendments seek to establish comfort on the nature of those services in terms of their impact on society and how publicly procured contracts affect people. We are sympathetic to these aims. Of course, we will debate later further amendments with similar objectives covering the whole trade environment and not just GPA, because workers’ rights, the environment, food standards, protecting the NHS, the needs of small businesses and other vital issues are central to the trade agenda. There is no point in having international trade if it erodes standards for people who live in this country.
In his maiden speech at Second Reading, the Minister made it clear that there was no intention to water down terms and conditions, yet the Government seem reluctant to put any of those terms and conditions into the legislation. This makes people suspicious—it makes me suspicious. These amendments, or amendments that come later, would help alleviate our suspicions.
Amendment 6 would require the Government within six months of acceding to the GPA to lay before Parliament a report on what help they are providing to businesses in the UK so that they can secure the advantages of this market access. The Government paint a picture of “global Britain”, a nation sailing the high seas of international trade with swagger and elan. I am not sure that I wholly sign up to this particular view of the world, but the GPA is an opportunity for UK companies, and has been since 1996. The Minister also said at Second Reading:
“I should like to make it clear that this Government and I are committed to transparency”.—[Official Report, 8/9/20; col. 675.]
All the evidence points to his sincerity in this regard. In the interests of the transparency that the Minister espouses, Amendment 6, proposed by my noble friend Lord Purvis and I, simply asks for a report within six months on how the global Britain project is going with respect to the GPA. It would set out how Her Majesty’s Government are facilitating UK business taking advantage of the GPA. What actions have backed up the Secretary of State’s brio? For example, how have Her Majesty’s Government helped small businesses in the way just advised by my noble friend Lady Burt?
This level of transparency will have the benefit of reassuring people like me who fear that much of the language around international trade is just that: words. We want action; we want success. Human nature being what it is, our proposed six-monthly report would also help ensure that someone was actually doing something during that period.
I am pleased to speak in support of Amendment 5. The Institute for Government puts UK government spending on procuring goods, works and services from external suppliers in 2018-19 at around £292 billion, which is more than a third of all public spending. This huge spending capacity should be used as leverage to ensure the highest standards of labour rights here in the UK and in countries with which we do business. The Trade Bill gives the Government the opportunity to advance this process.
This amendment and the later Amendment 18 ask the Government to permit public bodies to consider more than short-term concerns such as lowest price and to take into account the welfare of the workers who will carry out the contract, ensuring that acceptable standards of employment are applied by any successful bidder. The conditions suggested in the amendment are in no way onerous; they are the basic minimum standards as set out in the conventions of the International Labour Organization which have been ratified by the UK. As we are a founding member of the ILO and a country that has ratified the eight fundamental conventions, this would not be asking too much. The amendment simply expects that any trade deal should not undermine or restrict the ability of a public body to include in its tender that bidders should abide by these basic employment rights, covering: freedom of association; the right to organise and to free collective bargaining; following basic rules against forced labour and child labour; and outlawing discrimination.
(4 years, 6 months ago)
Lords ChamberMy Lords, I have added my name to Amendments 110, 112 and 114, but I shall speak only to Amendment 114, which is a recognition that workers are truly a company’s greatest asset. But how many company mission statements have used those words but gone on to treat their workers as expendable? If a restructuring plan is to work, it will need the benefit of workers at boardroom level. If the company is ready for insolvency, the ability of the current board to turn things around must be open to question. Elected workers’ representatives are uniquely placed to identify improvements and ways to increase productivity, while at the same time assuring workers that their interests will be safeguarded. So, along with the other amendments, I hope that the Minister will reflect on this one in particular and bring some alternative to the next stage of the Bill.
My Lords, I associate myself with some of the comments of the noble Lord, Lord Hain, around works councils. In my past life, working with works councils, particularly in the Netherlands and in Germany, I found them to be a positive, long-term force within companies. An earlier speaker mentioned that in private sector businesses, unions have low representation, which is why works councils should be important in this country, but on departing the European Union I understand that the Government are going to reduce or negate the need for companies to have works councils, which is something to be regretted. What is also to be regretted is that we cannot have a proper debate on these amendments, which means that Report will inevitably have to go on longer.