Procurement Bill [HL]

Debate between Lord Purvis of Tweed and Baroness Scott of Bybrook

Committee stage
Wednesday 6th July 2022 Grand Committee

[Baroness Scott of Bybrook (Con)]

My Lords, I start by clarifying what utilities are covered in the Bill. Utilities are defined in it as public bodies, public undertakings or certain private undertakings that carry out utility activities. Public undertakings differ from public bodies in that they do not have functions of a public nature; their activities are more economic and commercial in nature. While it is no longer one, before the Government sold their shares in 2015 Eurostar International Ltd was a public undertaking.

The Bill covers private utilities only where they have been granted a special or exclusive right to carry out a utility activity. These are rights that have been granted by a statutory, regulatory or administrative provision and that substantially limit other entities from carrying out those activities. Rights are not special or exclusive when granted by following a competitive procedure or where the opportunity was adequately publicised and the rights were granted on the basis of an objective, non-discriminatory criterion.

Private utilities which enjoy “special or exclusive rights” are effectively in a monopoly position and therefore they could, however unlikely it is, engage in preferential treatment that, for example, favours their own affiliates or strategic partners and discriminates against other suppliers bidding for the contracts. The Bill applies to utilities only where they are carrying out the utility activities set out in Schedule 4: specifically, gas and heat, electricity, water, transport services, ports and airports, the extraction of oil and gas, and the exploration for or extraction of coal or other solid fuels.

The two government amendments in this group are minor and technical in nature. Amendment 20 to Schedule 2 is consequential on government Amendment 231, which amends Clause 35(6) to ensure a single definition of utility is applied to the whole Bill. In Schedule 2, paragraph 28(2) is therefore no longer required. The definition at Clause 35(6) is exactly the same as that contained in the deleted sub-paragraph (2).

Amendment 24 amends Clause 5(1) to define a utilities contract as a contract

“wholly or mainly for the purpose of a utility activity”.

The addition of “wholly or” is to reflect the reality that a utility contract can include solely or predominantly utility activities. This amendment to the terminology ensures consistency with the approach to mixed procurement used elsewhere in the Bill; for example, with Clause 8(1) on light touch contracts, where the same principle applies. I beg to move.

[Lord Purvis of Tweed (LD)]

I am grateful for the Minister’s explanations. Her colleague the noble Lord, Lord True, previewed some clarification regarding the Post Office, so perhaps she was forewarned. I have two questions for clarification, further to what she said.

The more specific question relates to freeports, which I raised in the technical discussion this morning. I would be grateful if the Minister could respond now, but if not I would be happy if she does so in writing. There are a number of areas of government policy—I am not debating the rights and wrongs of this—which have activities linked to the provision of utility services but which are not directly, wholly or mainly a utility service. I am concerned, for example, about whether the more commercial activity of freeports, which are government policy and have the benefit of being linked with a utility but do not provide utility services, may well be exempted. That would not bring about the level of transparency in the thresholds that I believe there should be. I am still scratching my head about the status of freeports.

The element raised earlier by the noble Lord, Lord True, on postal services is concerning. I am particularly interested in the status of Post Office Ltd. The noble Baroness, Lady McIntosh of Pickering, raised Parcelforce. I understand that Royal Mail and Parcelforce have a relationship with Post Office Ltd, and they provide different services. I understand that the Post Office is not considered a Schedule 4 utility, but clarification on whether it is covered under the public undertaking elements would be helpful. I ask because postal business of the Post Office is included under the procurement chapter, referred to by the noble Lord, Lord True, and annexe 16A of the UK-Australia agreement, as are postal services, which relate to letters, parcels, counter services and other such services. The classification under the WTO which the annexe uses links with the pick-up, transport and delivery services of letters, newspapers and journals, whether for domestic or foreign markets. I am not entirely clear about the status of that when it comes to Royal Mail services. They are covered within the procurement chapter of the Australia agreement, but I am not sure of their status in this Bill.

This speaks to the wider point that we are now in the realm of having to look at each of the 24 agreements in the schedule. Any authority or likely bidder for any of these works will have to study all these FTAs and all the procurement chapters, in addition to the EU-UK TCA, this legal framework, and the Scottish and Welsh ones. At the very least, we are now replacing one system with 25—or more likely with 27. That means it is not a more efficient way of covering it.

Finally—I asked earlier, because it is not clear in the impact assessment, and Ministers might write to me on this—now that the Government are clarifying their position in the Bill on those that are covered, not covered and the exemptions, I would like to see an update on the information about the likely number of contracts and the values in all these categories. I would be grateful for that information and for clarification on the Post Office.

United Kingdom Internal Market Bill

Debate between Lord Purvis of Tweed and Baroness Scott of Bybrook

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Wednesday 28th October 2020 Lords Chamber

[Lord Purvis of Tweed (LD)]

My Lords, I wish to obtain absolute clarity from the Minister on the exemption in Schedule 2 with regard to:

“Services provided by a person exercising functions of a public nature”—


that is, a public body. That may apply to Wales but the General Teaching Council for Scotland is a charity as well as a regulatory body. The Minister outlined what it would be able to do to change, if challenged, those seeking to be registered in Scotland under the English criteria but who do not meet the Scottish criteria. The fear is that because the council is a charity—it is the oldest regulatory body for teachers in the world—it would be forced to accept teachers of a different standard than the English standard, which I automatically assumed would be a lesser standard. Will the Minister clarify that charities, such as regulatory bodies like the GTCS, are included in Schedule 2? She said it applied just to public bodies.

[Baroness Scott of Bybrook (Con)]

I am not going to give the noble Lord a definitive answer now but I will write to him to make sure that we are clear about that issue.

Covid-19: Department for Work and Pensions Update

Debate between Lord Purvis of Tweed and Baroness Scott of Bybrook

Tuesday 5th May 2020 Lords Chamber

[Baroness Scott of Bybrook]

I thank the noble Earl. I know how much concern he has for this sector. These arrangements will be kept under review the whole time. Obviously, if parts of that sector cannot come back into full production, one assumes that the Government will look favourably on them. However, we have to go step by step. As I said, we are dealing with a new phenomenon and will have to keep all these matters under continual review.

[Lord Purvis of Tweed (LD)]

The Scottish Government’s options paper, which they published today, shows very clearly that, going forward, there will be a different approach to social care, employability, and relaxing some of the social distancing measures and aspects of the lockdown. Other than the HSE reference in the Statement repeated by the Minister, which parts of the Statement cover the United Kingdom as a whole and which parts cover only England? There is now a UK-wide welfare system and a ministerial working group has been established to discuss the interaction between Scotland and England on welfare. However, it last met six months ago. Why has it not met more recently to discuss the interaction between the two? Given that the Minister has not been able to answer many questions on the Statement today, would it not be appropriate for the Government to bring this issue back to the House in government time for it to be debated fully, with substantive answers being given to all the points that have been raised?

[Baroness Scott of Bybrook]

I thank the noble Lord. Many of the points raised today have been raised before in a number of recent debates, but I am sure that there will be other debates on the welfare system as we move forward through this difficult period. As for the changes that will happen in England—they possibly differ from what is happening in Scotland at this time—we will know more this Sunday, I believe, when the Prime Minister will talk about the way forward.