Defence and Security Public Contracts (Amendment) (EU Exit) Regulations 2020

Lord Lancaster of Kimbolton Excerpts

Tuesday 3rd November 2020 Lords Chamber

[Lord Lancaster of Kimbolton (Con)]

My Lords, I rise to add my support to this amendment to the regulations. I am conscious that I am simply a poor warm-up act before the noble Lord, Lord Dodds of Duncairn, gives his maiden speech, so fear not: I shall be brief.

Turning to the regulations, it is important that we ensure that our legislation continues to operate effectively beyond the transition period and procuring our defence needs in a way that is legally sound is vital. The instrument we are debating today is necessary as it will ensure just that. I recognise that the challenges being debated today are just the first step towards developing a procurement regime that better meets the UK’s requirements. I am heartened to hear that the Ministry of Defence is grasping the opportunities offered by our departure from the EU and that work has already begun to simplify and modernise the legislation and, crucially, improve the pace and agility of procurement activity. Reducing unnecessary regulatory burdens on government buyers and suppliers alike is one of the opportunities that EU exit has opened up for us and one it is important to exploit.

Looking further ahead, I take this opportunity to draw noble Lords’ attention to the excellent Dunne report, written by my former ministerial colleague Philip Dunne, which seeks to plot a pathway for defence to make a growing contribution to UK prosperity. As we leave the EU, we now have the opportunity to buy British and support UK industry. For example, under EU regulations, while warships could be procured solely from UK yards, non-combatant vessels, even those of the Royal Fleet Auxiliary, had to be put out to international tender. Equally, defence has been restricted from supporting local communities by offering food contracts exclusively to local suppliers. Can my noble friend assure me that, as the Dunne report recommends, due weighting is attached to the prosperity impact in the UK for future government tenders?

Secondly, I highlight the need for agility and pace in our procurement process, perhaps by adopting a culture focused more on finding the right procurement solutions and less on defining and avoiding obstacles at the outset. This requires the MoD to develop its skills base as a client, while better understanding how defence and market interactions shape each other. Building the quantity and quality of skills across defence is an important part of this work.

Finally, in reminding the House of my interest as chairman of the 2030 Reserve Forces review, I make a plug for the greater use of sponsored reserves. Supplied as part of a commercial contract with the MoD, they offer an assured supply of uniformed skills to defence. Despite being identified as a vital asset to defence over 10 years ago, their numbers have stagnated at just over 2,000 and they remain, in my opinion at least, an underutilised resource.