Procurement Bill [HL]

Debate between Lord Wallace of Saltaire and Lord Clement-Jones

Committee stage
Monday 11th July 2022 Grand Committee

[Lord Wallace of Saltaire (LD)]

My Lords, I will speak to Amendments 44, 56 and 57. I too have gone back to the Green Paper and the Government’s response to that consultation and I remain extremely puzzled that this entire consultation process was undertaken, that the Government responded in their response document rather favourably to it, but that almost none of that is reflected in Part 2 of the Bill. Part 2 declares that it is about principles and objectives, but Clause 12 reserves the detailed definition of those objectives to the Minister—whoever he or she may be when it comes to it—to set out later in a policy statement. This is a skeleton Bill and, reading through several parts of it, and this section in particular, I am reminded that the DPRRC commented that leaving things to regulations often disguises the fact that Ministers have not yet quite made their minds up as to what their policy and intentions will be when it comes to it.

If Ministers continue to turn over as rapidly as they have under the current Government, we might anticipate that, every nine to 12 months, a new Secretary of State will wish to issue a new strategic statement. Clause 12 tells us that the statement will be presented to Parliament after carrying out

“such consultation as the Minister considers appropriate”

and making

“any changes to the statement that appear to the Minister to be necessary in view of responses to the consultation”.

So we are asked to leave all that—the underlying principles of this Bill—to the Minister, whoever she or he may be by the time this becomes law. Much better to start with a parliamentary debate on what the agreed principles for procurement should be, from one Government to another, than to present Parliament with changing Ministers’ changing ideas after lengthy discussions with others outside.

On that topic, can the Minister tell us which Cabinet-level Minister is now responsible for this Bill, or which Commons Minister he is co-operating with in managing it as it moves through the two Houses? That would help the Committee understand how and whether it is likely to progress and what difficulties or changed circumstances the Minister is operating under. I appreciate and almost sympathise with some of the difficulties he may be going through in those circumstances, but if we intend this Bill to last, to provide some stability for non-governmental suppliers and the clients of public services, we need to put agreed principles and objectives in it.

There was much more about principles in the Government’s response to the Green Paper. Can the Minister explain why it is not here? Why did it not appear necessary, in view of the responses to the consultation? Amendments 43, 44 and others insert statements of principles largely drawn from government publications. They are central to the Bill. I hope the Minister will accept that it was a mistake not to include them and that it is not acceptable to Parliament to leave this to a future Minister—or perhaps Government—and that he will return on Report, after consultation, with a form of words on this that can command a cross-party consensus and which reflects the consultation already undertaken. Amendments 43 and 44 offer different, though overlapping, drafts of what it might be appropriate to include in the Bill.

I will speak also to Amendments 56 and 57. Amendment 56 is purely exploratory; we deserve an explanation in clear and simple language of the grounds on which some suppliers are to be treated differently from others. Amendment 57 inserts clearer language on the criteria by which procurement decisions should be judged: value for money, cost, quality and sustainability—as the noble Lord, Lord Moylan, pointed out, it is the principles that matter most in setting the tone and culture under which the entire public procurement process will take place. These are important terms, not to be left to the policy statement when it comes but fundamental to the principles under which procurement decisions are taken. They must be in the Bill.

We are all aware of procurement contracts where the cheapest bid has produced unsatisfactory outcomes, where what has been promised has not been produced and where insufficient attention has been paid to quality or sustainability. The noble Lord, Lord Moylan, mentioned one, but there are many others. These need to be spelled out for future procurement, with the blessing and approval of Parliament. Parliament has been sidelined under the recent retiring Government; we hope that whoever succeeds our current Prime Minister will treat it with rather more respect and consideration.

[Lord Clement-Jones (LD)]

My Lords, I will speak to Amendment 46, which comes from a slightly different angle. In our report AI in the UK: Ready, Willing and Able?, our AI Lords Select Committee, which I chair, expressed its strong belief in the value of procurement by the public sector of AI applications. However, as a recent research post put it:

“Public sector bodies in several countries are using algorithms, AI, and similar methods in their administrative functions that have sometimes led to bad outcomes that could have been avoided.”


The solution is:

“In most parliamentary democracies, a variety of laws and standards for public administration combine to set enough rules to guide their proper use in the public sector.”


The challenge is to work out what is lawful, safe and effective to use.

The Government clearly understand this, yet one of the baffling and disappointing aspects of the Bill is the lack of connection to the many government guidelines applying to the procurement and use of tech, such as artificial intelligence and the use and sharing of data by those contracting with government. It is unbelievable, but it is almost as if the Government wanted to be able to issue guidance on the ethical aspects of AI and data without at the same time being accountable if those guidelines are breached and without any duty to ensure compliance.

There is no shortage of guidance available. In June 2020, the UK Government published guidelines for artificial intelligence procurement, which were developed by the UK Government’s Office for Artificial Intelligence in collaboration with the World Economic Forum, the Government Digital Service, the Government Commercial Function and the Crown Commercial Service. The UK was trumpeted as the first Government to pilot these procurement guidelines. Their purpose is to provide central government departments and other public sector bodies with a set of guiding principles for purchasing AI technology. They also cover guidance on tackling challenges that may occur during the procurement process. In connection with this project, the Office for AI also co-created the AI procurement toolkit, which provides a guide for the public sector globally to rethink the procurement of AI.

As the Government said on launch,

“Public procurement can be an enabler for the adoption of AI and could be used to improve public service delivery. Government’s purchasing power can drive this innovation and spur growth in AI technologies development in the UK.


As AI is an emerging technology, it can be more difficult to establish the best route to market for your requirements, to engage effectively with innovative suppliers or to develop the right AI-specific criteria and terms and conditions that allow effective and ethical deployment of AI technologies.”


The guidelines set out a number of AI-specific considerations within the procurement process:

“Include your procurement within a strategy for AI adoption … Conduct a data assessment before starting your procurement process … Develop a plan for governance and information assurance … Avoid Black Box algorithms and vendor lock in”,


to name just a few. The considerations in the guidelines and the toolkit are extremely useful and reassuring, although not as comprehensive or risk-based as some of us would like, but where does any duty to adhere to the principles reflecting them appear in the Bill?

There are many other sets of guidance applicable to the deployment of data and AI in the public sector, including the Technology Code of Practice, the Data Ethics Framework, the guide to using artificial intelligence in the public sector, the data open standards and the algorithmic transparency standard. There is the Ethics, Transparency and Accountability Framework, and this year we have the Digital, Data and Technology Playbook, which is the government guidance on sourcing and contracting for digital, data and technology projects and programmes. There are others in the health and defence sectors. It seems that all these are meant to be informed by the OECD’s and the G20’s ethical principles, but where is the duty to adhere to them?

It is instructive to read the recent government response to Technology Rules?, the excellent report from the Justice and Home Affairs Committee, chaired by my noble friend Lady Hamwee. That response, despite some fine-sounding phrases about responsible, ethical, legitimate, necessary, proportionate and safe Al, displays a marked reluctance to be subject to specific regulation in this area. Procurement and contract guidelines are practical instruments to ensure that public sector authorities deploy AI-enabled systems that comply with fundamental rights and democratic values, but without any legal duty backing up the various guidelines, how will they add up to a row of beans beyond fine aspirations? It is quite clear that the missing link in the chain is the lack of a legal duty to adhere to these guidelines.

My amendment is formulated in general terms to allow for guidance to change from time to time, but the intention is clear: to make sure that the Government turn aspiration into action and to prompt them to adopt a legal duty and a compliance mechanism, whether centrally via the CDDO, or otherwise.

Deregulation Bill

Debate between Lord Wallace of Saltaire and Lord Clement-Jones

Tuesday 3rd February 2015 Lords Chamber

[Lord Wallace of Saltaire]

No, I was perhaps making an after-dinner remark that was a little outside my brief.

Those of us who live in the north of England are well aware that different local authorities have had different holiday periods for a long time. Blackpool would not have had the prosperity that it had if wakes weeks had not been staggered across Lancashire and Yorkshire in the 19th century. There was a degree of adaptability among different local authorities that worked extremely well. It is no longer necessary.

In arguing that the proposed amendment to Part 3 of Schedule 15 is unnecessary, I should therefore say that schools and local authorities have had a considerable degree of autonomy to change their holiday times in recent years. Very few have wished to do so, because there are powerful arguments for the existing system. School leaders are best placed to decide the structure of the school year in the interests of their pupils’ education and local circumstances. Schedule 16 therefore gives all schools responsibility to set their own term dates from this September.

Thousands of schools, educating more than half of all registered pupils, are already responsible for their term dates. Three-quarters of secondary schools and more than a third of primary schools are already responsible for their school year. There is a school in every local authority in England with this freedom, but without the proposed specific requirement, suggested by the noble Lord, to consult tourism businesses in place. This has not resulted in significant problems for the tourist industry. In practice, the majority of schools continue to follow their existing term dates, with a small number making changes where there is a compelling reason to do so. Where they make changes, schools take into account the needs of the local community. As noble Lords will be well aware, the needs of the local community in cities such as Bradford or Manchester often include the different patterns of different religious and ethnic communities.

Turning to the concern at the heart of the amendment, all schools must already act reasonably, fairly and transparently when determining term dates. This will include considering the impact on those likely to be affected by their decisions, including pupils, parents, staff, the local authority and businesses.

[Lord Clement-Jones]

I am sorry to interrupt my noble friend, but these are very important details. Can he give me chapter and verse as to where these obligations to act reasonably, fairly, et cetera, arise?

[Lord Wallace of Saltaire]

My Lords, it may be somewhere deep in my brief. I am sure it is somewhere deep in the Box. If I go on for a short period, I am sure that the answer will magically appear for me. I am fairly sure it is in briefing and guidance. It is not something that is enforced upon schools because that does not seem necessary. When my children were in primary school in the early years of a Labour Government, I recall the head teacher of the primary school commenting that he received volumes and volumes of instructions each year on how to behave. We rather think we should try to avoid quite such a deliberate effort if we can.

The Government understand the noble Lord’s concern that it may not be immediately obvious to a school that its decision to change term dates could affect local tourism businesses. The Government have discussed this point with BALPA and agreed to assurances in the form of advice to schools. It is a general principle of law, I am assured, that is provided in guidance to schools, but we will write to the noble Lord with the exact chapter, verse and places where this guidance is set out.

I am pleased to reiterate that the Government have agreed that their advice to schools will be clear. Schools should be considerate of the needs of parents and the impacts on others by working with each other and the local authority to co-ordinate term dates as far as possible, and all schools must act reasonably when setting term dates; “reasonably” includes the impact of term dates on small businesses that rely on tourism. I will write to the noble Lord with the exact details of where the guidance is provided and the experience so far. I reiterate that the freedom that schools have had so far to alter term dates has not led to a huge revolution because the pattern of terms and holidays suits most parents, staff, businesses and others much better than any alternatives. With that assurance and my repetition that we are conscious of the way in which the short British summer and the needs of British tourist institutions interact with schools and school holidays, I hope the noble Lord will be able to withdraw his amendment.

[Lord Clement-Jones]

My Lords, as I am sure my noble friend is very well aware, Groundhog Day was celebrated yesterday in the United States. I felt that perhaps we were beginning to celebrate Groundhog Day here in the House today. Until the very last point of my noble friend’s response, I felt that the response he gave me was pretty undercooked, quite honestly, as if the Department for Education had disinterred something from two months ago which was more or less in the same form. It did not have the detail that one might require on Report to an amendment that is much more specific than the one that was put forward in Committee. I really feel that it has not been given the seriousness that it should have been, and that the Department for Education, for which in this context my noble friend is speaking, is not really taking the concerns of the tourism industry seriously.

I fully understand the case that my noble friend is making, that to date we have not seen a great impact on local attractions and so on, but that is not the issue. The issue is the potential impact, and it is only by addressing the concerns of local tourism interest, by consulting with them and so on, that one is really going to be able to understand that.

[Lord Wallace of Saltaire]

My Lords, we have not so far seen any problem, and if the noble Lord’s criticism may be that the DfE is not paying enough attention to this problem, that is partly because it is not a problem.

[Lord Clement-Jones]

My Lords, as I said, my noble friend has made the case that there is no existing problem, but the industry is extremely concerned that it could be a problem in future, because this will mean that the full range of schools—as opposed to a number of schools—will be able to change their term times by the decision of governing bodies. What the industry is quite reasonably asking is that the duty on school governing bodies to consult should be enshrined in law. My noble friend says, “It’ll be all right on the night, because they have a duty to act reasonably and fairly”, under something or other—whether it is guidance, advice or some other sort of way, no doubt, of communicating between the Department for Education and schools, I know not what. I look forward to my noble friend’s specific reply, which will be extremely helpful.

[Lord Wallace of Saltaire]

My Lords, just to add, in a Deregulation Bill, the Government are a little hesitant about imposing a new national regulation unless there is a good rationale for it. We have not yet seen the rationale.

[Lord Clement-Jones]

My Lords, my noble friend was talking about an existing set of guidance advice, not something happening in future. Therefore, it would be extremely useful to know whether this is an umbrella set of guidance, which means that the concerns of BALPA and others should be entirely satisfied by a duty to act fairly and reasonably—then I shall be extremely happy. But no specifics have been given. I look forward to hearing about them.

I am rather disappointed by my noble friend’s reply, I think that something more specific could have been given, but in the mean time I look forward to the letter and beg leave to withdraw the amendment.

Deregulation Bill

Debate between Lord Wallace of Saltaire and Lord Clement-Jones

Thursday 6th November 2014 Grand Committee

[Lord Clement-Jones]

My Lords, I thank my noble friend for his reply. What happened to evidence-based policy-making? In my all noble friend’s points, I could see assertions; indeed, I could see assertions in what the vastly respected noble Baroness, Lady Perry, had to say. Nothing that my noble friend said was rooted in evidence. He read out a string of educational consultees and the Federation of Small Businesses. Later in his reply he mentioned BALPPA, but BALPPA is extremely unhappy about this. It is one thing to consult; it is another thing to actually listen to what the consultee is saying.

Both the noble Baroness, Lady Perry, and my noble friend talked about parents’ interests and so on. The fact is that many parents already find the system where some schools can set their own dates pretty much of a nightmare as well. There is already some advantage in uniformity. In a sense, the case that I am making is, “Why read the writing on the wall when you can read the book of the US experience?”. If we go to a set of very different dates, which this could potentially lead to, that will have a severely detrimental effect on the tourism industry.

My noble friend is relying on the idea that, in practice, it will not happen. What evidence do we have that it will not happen over a period of time, especially if the pressure is to have shorter summer holidays? That seems to be what the department would like to see, even though I accept the point that it is not up to the department to fix those dates. However, there is a way of establishing a culture, of which it is perfectly capable. The department judging that there will be no impact does not, I am afraid, have a great deal of force behind it. “No change likely” is not particularly plausible.

I very much hope that those local educational establishments—the schools and so on—will consult when they decide what dates they fix if we keep this in the Bill or delete it from Section 32. However, when did local schools ever go to the local attractions and piers and consult with them and local businesses about this kind of thing? It is highly implausible to imagine that the headmaster of a local school is going to consult local businesses when considering what dates they are going to fix, unless it is made clear in some sort of guidance or instruction that that is what they ought to do. Otherwise, I am afraid that it will be a difficult situation for local tourism attractions in these circumstances.

[Lord Wallace of Saltaire]

There is no plot to reduce the length of the summer holiday. I fear that the noble Lord is suggesting that there is some Govian conspiracy afoot; there is not.

We have clear evidence from academies and pre-schools—the half of schools which already have the freedom. Only 8% have made any changes, and we see no evidence that it is likely that more will do so. There are strong arguments for at least one long break between terms every year. They include basic things such as school maintenance: repairing the roof and other such things. The same sort of argument exists for having a long break for the Houses of Parliament at one point during the year. In most instances we have no evidence whatever that there is a surge of demand to change the existing patterns.

I can reassure the noble Lord that the Department for Education is very much working with and has listened to BALPPA. We have agreed a new position. The advice that I have read out is an assurance: we are giving advice that schools should consider the needs of business. Having visited a number of costal towns on the east coast of England with my wife this last summer, I appreciate that costal towns in some instances are in real difficulty. However, that is not necessarily primarily connected with the position of schools and school holidays. There are a range of other problems that they are facing for other reasons.

I hope that I have said enough to reassure the noble Lord that this is not intended to produce radical revolution, but to produce a reasoned local compromise, a little more flexibility in the system and a little less interference from the top.

[Lord Clement-Jones]

I thank my noble friend for that peroration. It was very helpful. I think I have kicked the tyres on this particular clause enough. In the mean time, I beg leave to withdraw the amendment.

Digital Strategy

Debate between Lord Wallace of Saltaire and Lord Clement-Jones

Monday 15th July 2013 Lords Chamber

[Lord Clement-Jones]

My Lords, as regards the Government’s digital strategy, the NAO has recently pointed out that there are slipping projections for superfast broadband to rural areas, a lack of competition and the need to change the procurement model. Are not these serious criticisms, and is not the plan not to implement the Digital Economy Act until 2015 another disappointment?

[Lord Wallace of Saltaire]

My Lords, I am something of an expert when it comes to which parts of the Yorkshire Dales National Park one cannot get mobile access. I am conscious that there are all sorts of contradictions in wanting to develop rural broadband, with national parks resisting having mobile phone masts put up all over them.

Some weeks ago, the Chief Secretary to the Treasury announced, as part of the Investing in Britain’s Future package, that there will be an additional £250 million match-funded to extend superfast broadband to such hard-to-reach areas.