Procurement Bill [ Lords ] (Second sitting)
Alex Burghart ExcerptsTuesday 31st January 2023
(1 year, 3 months ago)
Public Bill CommitteesRead Full debate Procurement Act 2023 View all Procurement Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 31 January 2023 - (31 Jan 2023)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
Colleagues will be sad to hear that we have only 117 clauses to go as we enter this second sitting. Clause 8 defines the concept of a concession contract. It is a type of public contract, and its award is regulated by the Bill. Subsection (1) sets out the key concepts specific to a concession contract. There are two main features. First, under a concession contract, at least part of the consideration received must lie in the right to exploit the works or services. A good example might be a concession contract to operate a canteen where the supplier receives income from customers.
Secondly, in exploiting that right, the supplier or concessionaire must be exposed to a real operating risk. Subsection (2) defines an operating risk, which is a risk that the supplier will be unable to recover its costs through the concession—for example, the risk of fluctuating vehicle numbers and income under a contract for the construction and operation of a toll bridge where the supplier has the right to receive the toll income.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
Apologies for my lateness, Mr Efford. Clause 8 refers to concessionary contracts—contracts through which the authority contracts out work on the basis that the contracted company may be able to exploit or charge for extracted resources. Examples include the channel tunnel, which was paid for by private finance, with the financiers picking up the benefits. We support these contracts in principle—they can help us to build things without much cost to the taxpayer, and can help to expand the state—but there needs to be a balance. There needs to be guidance on what the right cost is. We could lose millions if the cost is wrong and the concession is given away too cheaply. Also, when deals regarding important infrastructure are signed, there needs to be caution to ensure that the long-term running of the system is up to standard. It is important that performance-based targets are included, as well as provisions for infrastructure building.
The Green Paper highlights that proposals for integrating the regulations for concession contracts into the core regime will be taken forward. However, there will be specific provisions covering the definition of a concession, how a concession contract is to be valued, and the duration of that concession. Those specific provisions address the key points raised by stakeholders in the consultation. The Government also propose to retain the higher financial threshold for concession contracts, greater discretion with regard to the method of calculating the estimated value of a concession contract, and an exemption for lottery-operating services, as well as other exemptions that come under the current regime; in all other respects, procurements for concession contracts will be subject to the new regime. We support the clause.
Question put and agreed to.
Clause 8 accordingly ordered to stand part of the Bill.
Clause 9
Light touch contracts
Question proposed, That the clause stand part of the Bill.
Alex Burghart
Light-touch provisions reflect the fact that certain public contracts, including those for social, healthcare and legal services, can warrant special treatment and greater flexibility. Flexibility is permitted by the scope of our international agreements. Clause 9 introduces the term “light-touch contract”, and provides for regulations to define which exact services should be subject to the lighter rules. As in the existing regime, common procurement vocabulary codes will be used to specify services.
The special features of the contracts are identified in subsection (4), which helps to prevent any inappropriate use of the power, as does compliance with our international agreements, which would prevent us from expanding the scope of what is included in the light-touch regime.
Light-touch contracts will be openly advertised unless a direct award ground applies. Contracting authorities will have to apply the exclusions and consider conflicts of interest. Transparency will be maintained through publication requirements, including requirements for an award notice, a contract detail notice and, when the contract is over £5 million, publication of the contract. By integrating these light-touch contracts into the broader regime, and having carve-outs where greater flexibility is justified, we have made it much clearer how such procurement should be run, and have ensured that probity and transparency are built into the process, while respecting these contracts’ unique characteristics.
Florence Eshalomi
I understand the need for a light-touch contracts regime, but I share the concerns expressed in the other place about the scale of the changes. Lady Noakes tabled a probing amendment that pressed the Government on why such contracts are not more narrowly or widely defined. Her amendment 30 sought to confine light-touch contracts to those concerning health or social care services provided to individuals, on the basis that that is how they are used at the moment—that is my understanding. However, if the Government believe that the definition should be wider, they should put that in the Bill. Open-ended regulation-making powers should not be necessary and are not desirable.
As the Minister is aware, the Cabinet Office delegated powers memorandum justifies the power by saying:
“While the scope of what is to be included in regulations made under this power is known, it is not practical for the Bill to include a long list of detailed…CPV codes to indicate which categories of contracts may benefit”
from the light-touch regime. It goes on to say that
“CPV codes may evolve over time, which would…require amendment to the Bill.”
However, the report of the Delegated Powers and Regulatory Reform Committee found that explanation to be inadequate, as
“it does not explain why it is considered appropriate for the power to be so broad that the issue of which kinds of contracts are to be subject to the ‘light touch contract’ regime is left entirely to regulations. There is nothing of substance on the face of the Bill to limit the discretion afforded to Ministers to allow less rigorous regulation for contracts of a kind that they choose to specify in regulations. Clause 8(4) lists three factors which Ministers must consider but without saying what effect these factors are to have. The Memorandum suggests that the provision made in exercise of the power will simply be a list of CPV codes but the power need not be exercised in that way.”
In its conclusion, the Committee said that
“the reasons given by the Government for leaving entirely to regulations the question of which contracts should be subject only to the ‘light touch’ regulatory regime are inadequate”,
and recommended that
“unless the Government can fully justify doing otherwise, the Bill should include criteria for determining which contracts should be subject to that regime.”
I understand the Government’s response to the consultation—that it might be tricky to tie down a definition and put it in the Bill—and Labour therefore does not seek to amend clause 9 today. However, I share the concerns aired in the other place about the scope of this part of the Bill. I am also concerned that the Government have not justified their stance beyond pointing to the existence of the common procurement vocabulary codes. Many feel that that does not answer the question posed by the Delegated Powers and Regulatory Reform Committee. I would like clarity from the Government on whether they are working closely with the likes of Lady Noakes to put their minds at rest. In particular, I would welcome a clear definition of what the powers in clause 8 mean in practice and how the Government intend to use them.
Question put and agreed to.
Clause 9 accordingly ordered to stand part of the Bill.
Clause 10
Mixed procurement: special regime contracts
Question proposed, That the clause stand part of the Bill.
Alex Burghart
Clause 10 concerns mixed contracts that involve an element to be procured under the general rules regime and an element to be procured under one of the special rules regimes. We discussed the objective of clause 5, which is in a similar vein. It is important to provide for such mixed contracts—a need for them will inevitability arise—while safeguarding against exploitation of exemptions and the lighter-touch rules. That will be achieved through the introduction of a test of separability, a safeguard similar to that in clause 5.
If separation of the general rules regime and special rules regime elements are possible, but a contracting authority chooses not to separate out the contract, then that mixed contract must be awarded in accordance with the general rules. It will not qualify for the special rules regime if the elements could reasonably be procured separately, having regard to the practical and financial consequences of splitting the requirement out.
Florence Eshalomi
As the Minister outlined, clause 10 is similar to clause 5. It is uncontroversial, as we see it, and it closes a loophole where one part of a contract could come under the special rules regime.
Question put and agreed to.
Clause 10 accordingly ordered to stand part of the Bill.
Clause 11
Covered procurement only in accordance with this Act
Question proposed, That the clause stand part of the Bill.
Alex Burghart
Clause 11 requires contracting authorities to carry out covered procurement solely in accordance with the Bill. Specifically, they must use the procedures in the Bill for competitive award, direct award and framework agreements. That will ensure that contracting authorities properly engage with the market and achieve value for money.
The duty that clause 11 creates will allow a supplier to hold a contracting authority to account. Remedies are available under part 9 when it can be demonstrated that a contracting authority has materially failed to have regard to one or more of the requirements in the Bill— for example, where there is direct award without proper justification, or discriminatory technical specifications —and the supplier consequently suffers, or is at risk of suffering, loss or damage.
Florence Eshalomi
We support this uncontroversial clause. It underpins many parts of the Bill, and mandates that procurement must be carried out under the terms of the Bill. The clause also points to different parts of the Bill for different forms of procurement—to clause 19 on competitive award, clause 41 on direct award in special cases, clause 43 on direct award after switching procedures, and clause 45 on award under frameworks.
Question put and agreed to.
Clause 11 accordingly ordered to stand part of the Bill.
Clause 12
Covered procurement: objectives
Alex Burghart
I will try to treat all the amendments in this large group in order. Amendment 9 seeks to replace the well-understood concept of value for money with a new duty, by importing into the procurement objectives the meaning of “social value” under the Public Services (Social Value) Act 2012. There are difficulties with that approach, I am afraid, in particular that there is no definition of “social value” in that Act. Contracting authorities are also likely to struggle to understand the concept of equity in the context of procurement.
Amendment 10 is unnecessary, as “public benefit” already allows for “public value” and for contributing to socioeconomic development to be considered where appropriate and relevant. This amendment also undermines the concept of what is in the public benefit by overlaying a similar but different concept of public value. That suggests that benefit and value are different things, and narrows the former term in a way that is not legally helpful.
Amendments 9 and 10 are also not necessary to ensure that social value is considered in the procurement objectives. The public benefit objective in subsection (1)(b) requires contracting authorities to think about the extent to which public money spent on their contracts can deliver greater benefit than it otherwise would—for example, broader social value or equitable outcomes for groups such as armed forces veterans, local employment and such like.
Amendment 101, tabled by the hon. Member for Aberdeen North, seeks to add transparency and anti-corruption efforts to the list of procurement objectives in the Bill. The Bill, however, will establish a world-leading transparency regime. It will see more commercial information published in three nations of the UK than ever before, including information on upcoming procurements prior to opportunities being advertised, and data against key performance indicators on major contracts, so that taxpayers can see how well contracts are being performed. Transparency is therefore already a mandatory requirement.
Florence Eshalomi
Is the Minister aware that the Government’s own “transparency ambition” document outlines a failure to provide for transparency in our procurement system? Some of the measures he has outlined are a step forward, but they still lack substantiveness to give providers and the public access to the full transparency that we need. Should we not look to follow in the steps of Ukraine in publishing an accessible digital dashboard, which would help the Government?
Alex Burghart
As the hon. Lady knows, transparency sits throughout the Bill. As I have just said, there are far greater requirements to publish than ever before, on an online platform that the Government will provide. She gave the important example of Ukraine. She will remember that we talked about this on Second Reading: the Ukrainians were advisers to the UK Government when we were putting our ideas together, so we are very much building on what they did in Ukraine. This will be an extraordinary step forward for transparency in the nations that are taking it up.
The Bill also requires contracting authorities to have regard to acting, and being seen to act, with integrity. That will oblige them to consider how to prevent fraud and corruption through good management, prevention of misconduct, and control. Failure to take anti-corruption steps or measures will be an indication that the contracting authority did not have a regard to the importance of acting and being seen to act with integrity.
Contracting authorities will also be required to comply with the provisions in the Bill on conflicts of interests and the exclusion of suppliers, preventing contracts from being awarded to inappropriate suppliers. That provides further opportunities to directly address transparency and anti-corruption issues within the context of a procurement. I hope that we all agree that it is essential that the procurement regime commands the trust of suppliers, the public and our international trading partners. In our view, the Bill already provides for those matters as it stands.
Amendment 89 seeks to define value for money. Clause 12 specifically does not define value for money to leave a degree of flexibility for different types of contracting authorities to adapt the concept for their own procurements. Contracting authorities should be able to select the most advantageous tender that prioritises things that deliver value for money for them. There are many precedents on the statute book where the term is left undefined, and that allows for a degree of flexibility. I could point to the Communications Act 2003, the Energy Act 2004, the Defence Reform Act 2014, the Bus Services Act 2017, and so on.
Kirsty Blackman
The Minister has answered the question in relation to value for money not being defined in this Bill because it is mentioned in other measures without that kind of definition. Regarding the term “public benefit”, is it also the case that it is widely used in other legislation without being defined? If the Minister does not have an answer now, I would be happy to hear something afterwards.
Alex Burghart
No, I am happy to say that it is already set out in the social value Act, I think, which I mentioned at the start of my remarks. Similarly to amendment 9, we feel that amendment 89 is unnecessary, as “public benefit” already allows for those factors to be considered, where appropriate and relevant to the contract being awarded.
New clause 2, also tabled by the hon. Member for Vauxhall, seeks to oblige contracting authorities to follow the six principles that the Government consulted on in the Green Paper. Now, the Green Paper was just that; it was a Green Paper and it formed the basis of what came subsequently. The six principles in the Green Paper were subsequently refined and then translated into the objectives and specific obligations that now exist in the Bill in the light of the responses to the Green Paper.
The language of a Green Paper is not the language of legislation, and one of the main lessons from the Green Paper and the consultation was the need to reflect the principles in a way that helps contracting authorities understand how they will implement them. That is what we have done. However, I assure the Committee that each of those principles remains within the Bill in an appropriate form. “Value for money” remains a fundamental tenet of the procurement regime. It is well understood by contracting authorities so does not need to be elaborated on.
“Public good” was focused on the delivery of strategic national priorities, so we revised it to the objective of “public benefit” to address the concerns raised in the public response to the Green Paper that it was solely about national, and not local, priorities. The revised principle supports wider consideration of social value benefits.
As we have discussed, “transparency” remains as an objective to encourage information sharing with suppliers, and “integrity” also remains an objective. The public response to the Green Paper indicated that “fair treatment” was too subjective for contracting authorities to determine by objective standards, so we introduced the concept of “treating suppliers the same”, which hon. Members will find in clause 12(2). Finally, “non-discrimination” has been converted from an objective to a hard-edged obligation in clauses 88 to 90.
The combination of the objectives and specific legal obligations in the Bill deals with procurement principles more effectively than the broad principles that the Government consulted on in the Green Paper. I therefore respectfully request that the amendments be withdrawn.
Florence Eshalomi
I heard the Minister’s response, and I think, again, that it is disappointing that there is a total shift between what was introduced by the Government in the Green Paper and what we now see in front of us. That was also noted in the other place.
I welcome the aim of the amendments tabled by the hon. Member for Aberdeen North. That is something that we do support, and I know that she highlighted it in a Westminster Hall debate just last week. Climate change is something that we are very much concerned about.
On ensuring that we think about the next generation, we can only do that if we protect the environment and the Earth that we are on now. We only have one opportunity. We cannot do it later, because there will be nothing left. That is a key issue that our young people are concerned about, and it must be front and centre in this Bill.
The climate elements of the Bill are really important. They touch on social value and on public value. There is an interwoven link showing why that is important, and that should receive due consideration, so it is a shame to hear the Minister not wanting to take those measures forward.
Alex Burghart
Amendments 90 and 91, tabled by the hon. Member for Vauxhall, seek to amend clauses 12 and 16 so that contracting authorities have to have regard to potential barriers to the participation of charities, particularly when carrying out pre-market engagement.
Charities provide important services and may well offer the best value for money in a procurement, particularly in the social and education services. That was in the forefront of our minds when allowing greater flexibility for light-touch contracts, which means that those procurements often facilitate the participation of charitable and not-for-profit organisations.
Before I go on, I must correct my remarks to the hon. Member for Aberdeen North at the end of our debate on the previous group of amendments. I foolishly leapt to my feet and said that it was the social value Act that was relevant. It is actually section 4 of the Charities Act 2011. I am grateful to have officials who do not err.
There are a broad range of charities involved in public procurement, including some very large, well-established organisations capable of effectively competing in a public procurement market. Charities that need extra support for public procurement will often meet the definition of SME in clause 119, and will therefore already benefit from the duty in clause 12(4) to support SMEs, which applies to pre-market engagement and the whole procurement lifecycle. I say as someone who has worked with and for both large and small charities that asking for charities of all sizes to be treated the same way is perhaps not appropriate. In addition, the provisions on reserving contracts for certain suppliers in clauses 32 and 33 will help those charities that qualify as a supported employment provider or public sector mutuals.
The Government are fully committed to supporting charities, hence the sector will often be the beneficiary of grants that sit outside the public procurement regime. However, the Bill already functions to give appropriate support to charities’ participation in public procurement. It is undesirable to include other types of organisations in clause 12(4) and risk diluting the separate requirement for contracting authorities to have particular regard to barriers that smaller suppliers face because of their size. I respectfully request that the Committee does not support amendments 90 and 91.
In the other place, my colleague Baroness Neville-Rolfe admirably championed small and medium-sized enterprises, and tabled amendments to complement the Bill’s existing provisions that support smaller businesses. Those include explicit duties to have regard to the participation of SMEs. Amendments 1 to 3, tabled by the hon. Member for Vauxhall, would amend those duties to include a specific reference to co-operative societies. I share her deep admiration for co-operative societies. They play a very important role in our economy and our society as a whole. I am happy to confirm to the Committee that the SME obligation will include co-operative organisations where they meet the tests for being an SME.
Many co-operatives will meet our definition of SME in clause 119. Where they do not, for example because they employ more than 250 staff, they should not benefit from the duty to support SMEs. We think it would be wrong to treat a large co-operative bank, for example, in the same way that we are proposing to treat SMEs. If we included other types of organisations, we would risk diluting the Bill’s particular regard to the barriers that SMEs face—the clauses would lose their impact, which would be a shame for the SMEs that the Bill seeks to support. I therefore respectfully urge the hon. Lady to withdraw her amendments.
Question put, That the amendment be made.
Alex Burghart
Clause 12 sets out the procurement principles that establish what the Bill is designed to achieve, and how its success will be judged. The clause splits the procurement principles into objectives and other rules to help contracting authorities to understand what they are obliged to do.
The objectives in clause 12(1) set out the values of public procurement, the furthering of which contracting authorities must give proper consideration to in the course of making procurement decisions. Public procurement needs to be focused on achieving value for money, which is rightly at the top of the list of objectives set out in clause 12(1). However, each of those objectives has its own merit, and each must be considered independently. It is not the intention of the Bill that value for money, however important, disapplies or overrides the obligation on contracting authorities to have due regard for the objectives of public benefit, information sharing and integrity.
The rules on equal treatment in subsections (2) and (3) are obligations that set minimum standards that contracting authorities must follow. The Bill will also accelerate spending with SMEs through the creation of new duties that will require contracting authorities to have regard to SME participation. We want to level the playing field for smaller businesses and for buyers, not only to avoid putting up, but to remove barriers to their participation.
Question put and agreed to.
Clause 12 accordingly ordered to stand part of the Bill.
Clause 13
The national procurement policy statement
Florence Eshalomi
I beg to move amendment 22, in clause 13, page 10, line 2, leave out “may” and insert “must”.
This amendment would require a Minister to publish a National Procurement Policy Statement.
The amendment seeks to mandate that the Government “must” publish a national procurement policy statement, instead of just “may”. I am sure the Minister will tell me that the amendment is unnecessary as, of course, the Government will seek to publish a national procurement policy statement. However, as has been stated, the change that we have seen in the Bill from the Green Paper to today means that we can take nothing for granted when it comes to the Government’s word on procurement.
The amendment is identical to the one tabled in the other place by Lord Lansley. When Baroness Noakes introduced it, she said that the clause’s current wording leaves the door open for a statement not to be published. Given the importance of the policy statement in setting rules for covered procurement, it would be deeply damaging for it not to be published. I urge the Minister to ensure that that cannot happen by supporting our amendment.
Kirsty Blackman
It seems to me that this is probably the easiest amendment for the Government to accept. They have made it clear how important the national procurement policy statement will be, and how a significant proportion of the decision-making processes in the Bill will flow from that statement.
I support the amendment, and I would suggest going even further in saying that every Government should publish a national procurement policy statement. We have had quite a lot of Governments recently, but after every general election and every first King’s Speech of a new parliamentary Session, the Government should be clear in a number of areas. They should set out their policy direction of travel, not just in procurement but in general. That is a key moment when the Government could refresh their national procurement policy statement.
I do not have a significant issue with the Government updating the statement based on priorities. We have seen what has happened in the last few years with covid, and in the past decade or so, we have developed a better public understanding of the impacts of climate change. Science has changed, and not only have priorities changed, but the social system has changed as a result of covid. It therefore seems that updating the statement would be a sensible thing to do. If the Minister is not willing to accept the amendment, I urge him to make it clear that the Government intend to publish the national procurement policy statement, no matter whether the clause says “may” or not.
We will come to the clause stand part debate, but the clause states that there is an intention to keep the statement “under review”. Does the Minister expect that if Government priorities were to change significantly, a new or a tweaked statement would be published? For example, if something major happened, as with covid or the war in Ukraine, priorities may change as a result. Does he expect Government Ministers to at least consider updating the national procurement policy statement in the light of drastic changes that may or may not come to us in future?
Alex Burghart
Amendment 22 would require the Government to publish a national procurement policy statement rather than just allowing them to do so. We have had a lot of debate about the nature of procurement policy and the associated important elements of procurement, such as driving social change.
As has been demonstrated by the sheer number of topics that we have touched on, procurement is often used to transact wider policies. That is correct, but we have to be realistic about the fact that those policies shift over time. The hon. Member for Aberdeen North gave a couple of examples of that. Indeed, the Government demonstrated how quickly we can change our procurement policies in the light of Russia’s illegal invasion of Ukraine. It is therefore both preferable and necessary that procurement policy is aligned with wider Government objectives. As such, the publication of an NPPS is a decision based on the strategic policy priorities relevant to the Government at that time. It needs to be as flexible as possible, and mandating a Minister to publish one takes away some of that possibility.
However, I assure the hon. Lady that the Government absolutely intend to publish an NPPS. They are working on it at the moment, and I look forward to bringing it to the House and discussing it when the time comes. She is right that it will be possible for Administrations to update their national procurement policy statement, but it will also be possible for them to withdraw it. One reason for not mandating is that there may be times when the Government are working on a new one, and there is a hiatus between the two. I therefore do not see that changing the drafting of the clause and mandating the statement is necessary. I respectfully request that the hon. Member for Vauxhall withdraw her amendment.
Alex Burghart
I beg to move amendment 28, in clause 13, page 10, line 9, leave out paragraph (b).
This amendment would remove the requirement for a Minister of the Crown to give due regard to certain principles before publishing the national procurement policy statement.
The Chair
With this it will be convenient to discuss the following:
Amendment 7, in clause 13, page 10, line 12, after “environmental” insert “, cyber security”.
This amendment would make cyber security one of the strategic national priorities for procurement.
Amendment 11, in clause 13, page 10, line 12, after “environmental” insert “, national security”.
This amendment would add national security as part of procurement principles.
Amendment 107, in clause 13, page 10, line 25, at end insert—
“(vii) fair treatment of workers, by ensuring fair pay and conditions, workplace wellbeing, development of skills and progression and diversity in recruitment.”
This amendment would add a procurement principle based on the fair treatment of workers.
Government amendment 29.
Amendment 105, in clause 13, page 10, line 36, at end insert—
“(4A) The national procurement policy statement must include measures to ensure that no supplier may be granted a procurement contract with a contracting authority where the Secretary of State is satisfied there is established evidence that a provider has been involved in—
(a) modern slavery,
(b) genocide, or
(c) crimes against humanity.”
Alex Burghart
The purpose of amendments 28 and 29 is to overturn amendments added to the Bill in the other place, which require that prior to publishing a national procurement policy statement, the Minister must give due regard to a number of specified principles and mandate the inclusion of a number of priorities in the NPPS.
I reiterate that the Government recognise that those principles are important to procurement, which is why most of them are already core elements of the procurement regime and are reflected throughout the Bill. That is evident in the Bill’s drafting overall. For example, value for money, integrity and maximising public benefit are set out in clause 12 as procurement objectives that contracting authorities must have regard to directly when carrying out procurements. As discussed, transparency is also a requirement running through the Bill. Furthermore, specific requirements in the Bill place obligations on contracting authorities regarding fair treatment of suppliers and non-discrimination in decision making—for example, the conflicts of interest provisions in part 5. Therefore, although the principles are important, to incorporate them as part of the national procurement policy statement process when they are already applicable to procurements on the face of the Bill is unnecessary.
Similarly, the other place added a subsection that requires the inclusion of specific priorities in the national procurement policy statement. Those relate to achieving targets set under the Climate Change Act 2008, the Environment Act 2021 and the Public Services (Social Value) Act 2012, as well as to promoting innovation among potential suppliers and minimising the incidence of fraud.
We carefully considered which policy priorities should and should not be included within the regime, in order to maximise productivity and ensure that the Bill is as streamlined as it can be to deliver for all contracting authorities and maximise the benefits from all procurements. It is, I believe, more than adequate that the Public Services (Social Value) Act requires contracting authorities to consider the economic, social and environmental wellbeing of an area when undertaking specified procurement. Restating that in a policy statement would be unnecessary, as that Act is already binding on contracting authorities.
The amendment introduced in the other place looks to increase innovation and minimise fraud, but that is already at the core of the Bill. With our new approach to small businesses, we are unleashing innovation in the supply chain, and by embedding transparency throughout the procurement lifecycle, alongside our plans for oversight, tackling fraud will be easier than ever before. It would be counterproductive to restrict the flexibility of the national procurement policy statement by placing specific priorities in primary legislation.
We have made it clear that the NPPS will be used to set out strategic policy priorities, over and above those enshrined in the Bill, that are relevant at the time that the NPPS is to take effect.
Florence Eshalomi
I oppose amendment 28; it would remove Lords amendment 46, which was added on Report. Clause 13 currently mandates the Government to give due regard to a number of important principles before publication of their national procurement policy statement. Those principles follow on from the procurement principles promised in the Bill— namely, promoting the public good, value for money, transparency, integrity, fair treatment of suppliers and non-discrimination.
Those principles are important. We know that public good allows us to put what we believe is best for the country at the heart of procurement. When we also consider the huge amount of money spent on procurement —ultimately, it is the public’s money going towards delivering goods and services—it is right that the Government expect the money to be spent in the public’s interest. Procurement must always have that idea in mind, and it cannot be driven by any other aim of individuals in Government or other private individuals.
Alex Burghart
Amendment 7 would require “cyber security” to be added to the list of principles to which Ministers should have regard when drafting a national procurement policy statement, and amendment 107 would require fair treatment of workers. Similarly, amendment 11 seeks to broaden the list of principles to which Ministers should have regard when drafting a national procurement policy statement by adding “national security”.
National security is, of course, of paramount importance. The Bill makes substantial provision for the protection of the UK’s national security through the national security exemption in schedule 2(21) and the discretionary exclusion grounds for suppliers in schedule 7(14). Where national security considerations are relevant, the Government have established policy and guidance that procurers must take strict account of.
Amendment 105 seeks to prevent the award of contracts to suppliers involved in modern slavery, genocide or crimes against humanity through measures to be included in the national procurement policy statement. The hon. Member for Aberdeen North mentioned her enjoyment of reading Bills. As she will see later on, the Bill already contains a robust regime for the exclusion of suppliers that are unfit to hold public contracts.
Schedules 6 and 7 set out a wide range of exclusion grounds that target the most serious risks to public procurement, and that explicitly includes modern slavery. We have also taken action to strengthen the way that modern slavery is defined, so that suppliers may be excluded where there is sufficient evidence that they are responsible for modern slavery anywhere in the world, whether or not they have been convicted of an offence.
I also draw the hon. Member’s attention to the debarment regime in clauses 59 to 64, which allows for Ministers to consider whether any supplier meets one of the grounds for exclusion and whether the issues in question are likely to reoccur. Suppliers on the debarment list face exclusion across the public sector at all levels. That is a significant step forward in our approach to supplier misconduct.
As I made clear in my initial remarks, the principles in clause 13(3)(b) are duplicative and do not serve a strong purpose. I therefore still propose to overturn them.
The hon. Lady remarked on failures in the existing regime. I gently extend the invitation to her, once again, to leave the existing regime behind and join the new regime; but alas, Scotland has declined to do so and will be stuck with the existing regime.
Question put, That the amendment be made.
Chris Evans (Islwyn) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr Efford. The clause states that Welsh Ministers may publish a statement setting out
“the Welsh Government’s strategic priorities in relation to procurement.”
I am pleased that the Welsh Government are adopting the Bill, subject to the legislative consent of the Senedd, of course. To put it simply, the clause comes down to respect. Devolution was originally introduced in the UK in 1998 through the Scotland Act 1998, the Government of Wales Act 1998 and the Northern Ireland Act 1998. It has since become embedded in our society and our national identities; a whole generation has not known anything different, which is a good thing. Protecting the voices of our devolved nations in UK legislation is crucial not only for maintaining the relationships between the UK Government and the devolved nations, but for our democracy as a whole. The Wales procurement policy statement is the voice of the Welsh Government on procurement and, by extension, the voice of the Welsh people, and that deserves a place in the Bill.
The Bill has arisen from our exit from the European Union. Our exit has given us opportunities to ensure that our legislation works best for the UK and the devolved powers. We need a procurement system that works for all communities across the UK and all the devolved nations.
Clause 14 also outlines the steps that Welsh Ministers will need to take before publishing the policy statement. They include carrying out a consultation and, after receiving the responses, making any necessary changes to the statement, which must then be laid before the Senedd. The Bill is a good example of how the two Governments can work together in consultation on legislation in a devolved setting.
I note the views of the Welsh Government on fair value and social partnership, which they have outlined in their Social Partnership and Public Procurement (Wales) Bill. It focuses on the wellbeing of Wales and a “prosperous Wales” as an outcome of procurement, and provides a framework for improving socially responsible public procurement. Ensuring that our public procurement system supports the whole UK’s prosperity is vital.
The social partnership between Government, employers and workers is also a strong focus of the Welsh Government’s Bill. It is valuable to include everyone who is at the table. A major component of the legislation is the requirement on certain public bodies to take into account socially responsible procurement by establishing wellbeing goals that they must meet when procuring, and to publish a procurement strategy. Under the Welsh Government’s framework, those public bodies will be required to seek to improve economic, environmental, social, and cultural wellbeing when carrying out procurement.
Alex Burghart
I am delighted to follow the hon. Gentleman’s comments about Wales. I must say that work on this Bill has been an absolute model of co-operation between us in Westminster and colleagues in Cardiff. The Bill is very much a result of joint working, and it is stronger for it, and for the support it enjoys from colleagues from Northern Ireland, from Belfast. We hope that one day colleagues in Holyrood will see fit to join us in creating a new procurement landscape that takes advantage of the opportunities that leaving the EU has made available to us. I praise the joint working that we have seen so far, and look forward to joint working in the future.
Question put and agreed to.
Clause 13, as amended, accordingly ordered to stand part of the Bill.
Clause 14 ordered to stand part of the Bill.
Clause 15
Planned procurement notices
Question proposed, That the clause stand part of the Bill.
Alex Burghart
Clause 15 concerns the planned procurement notice. It is designed to give as much advance information to the market as possible, so that interested suppliers can determine whether they wish to bid in the procurement covered by the notice, and so that they have the maximum time for preparation. It also gives contracting authorities the option of reducing tendering periods by publishing a planned procurement notice. Publication of that notice may take place at any time before publication of the tender notice, but if its publication occurs at least 40 days and no longer than one year before publication of the notice, the contracting authority may, if it wishes, benefit from reduced tender periods of a minimum of 10 days.
Florence Eshalomi
As the Minister has outlined, clause 15 relates to planned procurement notices. When used well, such notices allow for significant benefits, both for the contracting authority and for the companies wanting to bid. For the contracting authority, they reduce the time limits associated with procurement notices by significant amounts; in many cases, that reduction may be from 25 days to 10 days, which represents a significant decrease in the time limit and reduces bureaucracy for contracting authorities. The clause will mean that suppliers get 40 days to plan for a bid before the official bidding time limit opens. We welcome that; it is a sensible mechanism that will benefit a number of SMEs, which often do not have legions of administrative staff. They will welcome that extra notice to prepare a bid for a contract.
As the Minister may be aware, Lord Hunt of Kings Heath and Lord Aberdare supported an amendment in the other place that attempted to make those notices mandatory. Lord Aberdare said:
“The existing wording in Clause 14(1) allows for better practice, confirming that contracting authorities are able to publish a planned procurement notice. But your Lordships will know that being able to do something within legislation does not mean that it actually happens…My preference might be simply to replace ‘may publish’ with ‘must publish’.”—[Official Report, House of Lords, 6 July 2022; Vol. 823, c. GC279.]
I do not think I need to push that point particularly hard with the Minister, but I hope that as we progress, he will explore in more detail what support can be given through the Bill to help SMEs.
How does the Minister expect the notices to be used by contracting authorities? When it comes to small contracts, the amendment tabled in the Lords may be too onerous on contracting authorities, but I think we can all agree that the notices are used by contracting authorities. As Lord True said in response to the amendments in the name of Lord Hunt of Kings Heath and Lord Aberdare,
“I agree that it is vital that the market—particularly certain aspects of it to which the noble Lord and others referred—is given sufficiently early warning of what contracting authorities intend to buy so that suppliers can gear up to deliver. This is particularly important for SMEs and charities, which were referred to by the noble Lord and others.”—[Official Report, House of Lords, 6 July 2022; Vol. 823, c. GC290.]
Will the Minister outline to contracting authorities how often they should use those notices, and will he take a proactive approach to investigating how they are used by contracting authorities, and whether their use can be expanded?
Also, how can groups such as SMEs and charities find out about the notices? Perhaps the Minister is leaving much of this to the Government’s planned digital platform, but I hope he can confirm that the notices will be on the platform, and that SMEs will be able to find them efficiently.
Alex Burghart
Absolutely. This is all part of our enhanced transparency regime, which will make it much easier for everyone—authorities, suppliers, the public, the press, and hon. Members of this House—to see what is going on in public procurement. Planned procurement notices are a very good thing; they give authorities the option of making clear what they are about to do, thereby giving themselves the chance to speed up that process slightly later on. We have every expectation and hope that they will be widely used, and as the hon. Member for Vauxhall has said, it is often small and medium-sized enterprises that will particularly benefit. When this initiative is considered alongside our plans to encourage authorities to publish their pipelines, we can really start to see the benefits of enhanced transparency in this area.
Question put and agreed to.
Clause 15 accordingly ordered to stand part of the Bill.
Ordered, That further consideration be now adjourned. —(Julie Marson.)
Procurement Bill [ Lords ] (First sitting)
Alex Burghart ExcerptsTuesday 31st January 2023
(1 year, 3 months ago)
Public Bill CommitteesRead Full debate Procurement Act 2023 View all Procurement Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 31 January 2023 - (31 Jan 2023)
The Chair
Copies of written evidence that the Committee receives will be circulated to Members by email and published on the Bill website.
Clause 1
Procurement and covered procurement
Question proposed, That the clause stand part of the Bill.
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
It is a pleasure to serve under your chairmanship, Mr Mundell, and with all hon. Members on both sides of the Committee. This is a significant piece of legislation in this Parliament, and a substantial one. We have 124 clauses in 13 parts with 11 schedules to discuss in 12 sessions, and I look forward to sharing them all with hon. Members present.
Clause 1(1) sets out the technical definitions of “procurement” and “covered procurement”. Covered procurement means those procurements that are covered by the majority of the provisions in the Bill. They are mostly procurements by contracting authorities above the relevant thresholds for goods, services and works that are not exempted from the Bill.
However, the Bill does cover some aspects of procurements that go beyond that. That is why we have a wider definition of procurement, which means any procurement. That allows the Bill to make some limited provision in relation to matters such as below-threshold procurements, and procurements in accordance with certain international rules or certain treaties. For example, the provisions in part 6 of the Bill regulate certain procurements that are of a lower value than the thresholds set in schedule 1 but are none the less subject to some regulation under the Bill.
Subsection (2) makes it clear that the term “procurement” —and, by extension, “covered procurement”—includes all steps taken in the contract award, as well as the management of a contract, up to and including termination. Subsections (3) and (4) make it clear that references to procurement and covered procurement also apply where contracting authorities conduct joint procurement and procurement by a centralised procurement authority for the benefit of other contracting authorities.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr Mundell. I start by paying tribute to Sarah, Christopher and Huw in the Public Bill Office for all their hard work in going through over 100 amendments tabled for Committee stage. I also thank the Minister for his opening remarks.
We have been clear that we want to work constructively with the Government to get the Bill into as good a state as possible. We all want procurement to work for British people, inspire confidence in the system and offer genuine value for money. I hope that the Minister will consider our amendments on their merits, as genuine attempts to get the Bill into as good a place as possible.
As we know, the Bill began its life in the Lords and underwent significant changes before reaching this place. While we expected the Government to table amendments to their own Bill—especially given that, sadly, we have seen four Chancellors of the Duchy of Lancaster since the Bill’s introduction in the Lords on 11 May 2022—I have to say that the scale of change between the Bill as drafted and the Bill before us today does not inspire confidence that what we end up with will be without significant loopholes. Even as we start Committee stage today, the Minister has put his name to 71 amendments. That is a noticeable number, following on from the hundreds we had in the other place. Of course, we welcome changes that bring the Bill into a more workable state, but if we are having to amend it on such a scale with just one stage of parliamentary scrutiny left, we cannot have much confidence that the end product will not be riddled with errors and inconsistencies that have gone unfixed.
When we are talking about a third of public spending and the livelihoods of countless workers rely on us getting this right, it is disappointing that the Government introduced a Bill that still clearly needs significant work in Committee and on Report. I know that several of the amendments have come as a result of the ministerial merry-go-round that the Government have subjected us to over the past year. We broadly welcome those changes, particularly in relation to the increased consideration of small and medium-sized enterprises within the Bill.
Florence Eshalomi
I thank the hon. Lady for that point. It is so important, because we have seen what can happen when we do not get procurement right. We all know the impact it has on our local communities; we all have small businesses and organisations in our communities that are good at handling and dealing with public contracts but never get a look in. The fact that so many really good amendments were tabled in the other place but not taken up by the Government is quite disappointing.
What businesses ask us for is certainty, especially during these difficult economic times, but the mess the Government have made of the Bill does nothing but offer more confusion to the many businesses who rely on procurement. The Bill today is vastly different from the Bill introduced in the Lords, but it is also different from the Bill promised in the Government’s Green and White Papers and—who knows?—it may be vastly different from the Bill that ends up on the statute book. That does not scream strong and stable from this Government, and it is unacceptable when public services and livelihoods are on the line.
I am sure we will hear warm words from the Government that many of the amendments we discuss in Committee are unnecessary as they plan to address them in the national procurement policy statement. But how can the Government ask us, businesses and the people who rely on procurement for the day-to-day running of the country to trust them on their word after the year of chaos and uncertainty they have subjected us to, not least in the state of the Bill?
Even this first clause had to be forced in by the Government in the other place due to confusion in the Bill originally introduced to the Lords. Labour did not oppose the introduction of clause 1, which narrows down the definition of procurement to cover public contracts, and we will not oppose it today. We understand why the definition has been included—to distinguish between the specified procurements and other general procurements, particularly as we know that certain procurements that are not meant to be caught by the full framework of this legislation are no longer automatically included. We also agree with the need to familiarise our language in respect of the World Trade Organisation’s agreement on Government procurement, which the United Kingdom became a part of on 1 January 2021.
However, I share some of the concerns expressed by Lord Coaker in the other place about the use of the term “procurement” in the Bill. In particular, amendment 34 moved in the other place took non-covered procurement outside the remit of procurement objectives. I understand why that is necessary for the purpose of the Bill, but I would like to think that all procurement, covered or not, is carried out along the principles of value for money, integrity and maximising public benefit. However, I read carefully the explanation from Baroness Neville-Rolfe in the other place and found her explanation convincing enough to not table an amendment on the issue.
Alex Burghart
I thank the Opposition for their support for the clause.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clause 2
Contracting authorities
Alex Burghart
I beg to move amendment 27, in clause 2, page 2, line 13, leave out “including the NHS”.
This amendment would remove the specific reference to the NHS because the NHS falls within the definition of “public authority” regardless.
The Chair
With this it will be convenient to discuss the following:
Clause 116 stand part.
Government new clause 13—Power to disapply this Act in relation to procurement by NHS in England.
Alex Burghart
Amendment 27 and new clause 13 are necessary to address amendments made in the other place that would, if left, be problematic to the proper functioning of the Bill and to healthcare procurements.
First, it is necessary to remove from the definition of a public authority in clause 2(2)(a) the words “including the NHS”. We fully sympathise with the desire to mention that NHS bodies are contracting authorities—they absolutely are—but it is neither necessary nor helpful to make this addition, for a number of reasons. The NHS is not a single legal entity and does not have a clear meaning in law, so the inclusion of those words would create uncertainty and may have the effect of excluding bodies that are intended to be within it or unintentionally including bodies.
Kirsty Blackman
Will the Minister give us some examples of bodies that could be included or excluded by the continued inclusion of those words?
Alex Burghart
I am delighted by the hon. Lady’s enthusiasm to hear my next paragraph.
The relevant NHS bodies that are covered by the Bill will be specifically identified in regulations made under the power in schedule 1(5). This is exactly the same approach as under our existing procurement regulations, which is appropriate and helpful as it enables the list of central Government authorities to be updated from time to time as organisations change. There is absolutely no doubt that NHS trusts and various other NHS bodies are contracting authorities. This is because they clearly meet the test for a public authority set out in clause 2(2)(a), which is that they are publicly funded. That test is how we determine whether an entity is a public authority.
Clause 116, which was inserted in the other place, needs to be removed and replaced with the original clause. As it stands, the clause would delete the power agreed by Parliament in the Health and Care Act 2022 for the Department of Health and Social Care to make healthcare procurement regulations that are appropriate for patient care—otherwise known as the provider selection regime. NHS England and the Government have consulted extensively on proposals for the provider selection regime since 2021, and it has received strong support from health and care stakeholders.
The 2022 Act and the powers within it were approved by Parliament and received Royal Assent as recently as April 2022. Parliament recognised then that the procurement of healthcare services provided to patients is a special case and would benefit from procurement rules that would allow for the further integration of services and more joined-up care for patients. The provider selection regime is designed to support the reforms made by the 2022 Act by having flexible and robust procurement rules to support greater collaboration and integration in the NHS.
If clause 116 remains unamended, DHSC will be unable to proceed with its plans to foster the greater integration of healthcare services that better serve patients. If this power is not reinstated, procurement for NHS healthcare services will end up with a confusing scheme of double regulation under the Department of Health and Social Care’s healthcare procurement regulations and under this Bill. It is also likely to lead to greater competition and less collaboration for those healthcare services. I am working closely with colleagues in DHSC to ensure that the provider selection regime is compatible with, and not used to circumvent, the procurement obligations in the Bill, which properly apply to much of the NHS procurement landscape. Parliament will have the opportunity to scrutinise the provider selection regime regulations through the affirmative procedure when they are laid by DHSC in due course.
New clause 13 provides a power for a Minister of the Crown to make regulations disapplying the Bill in relation to areas covered by healthcare procurement regulations made under section 12ZB of the National Health Service Act 2006, as inserted by section 79 of the Health and Care Act 2022. Hon. Members will recall from the debate on the Health and Care Act that a separate but interrelated process of reforms is under way for the procurement of certain healthcare services. Using the powers in that Act, DHSC is currently preparing regulations to govern its proposed provider selection regime, with the aim of improving collaboration in the sector and removing barriers to integrating care. The Bill, following enactment, will therefore need to be disapplied to the relevant extent to enable that scheme of regulations to exist and achieve its intended purpose.
Florence Eshalomi
Labour does not intend to oppose amendment 27, nor the Government’s changes through clause 116 and new clause 13. Although we of course want the NHS included in clause 2 and the scope of the Bill, I am satisfied by the Minister’s response and do not intend to vote against the Government’s amendments.
I wish to touch on some issues relating to clause 2, which I will raise now to avoid the need for a separate clause stand part debate. In some ways, the issues relate to the intentions behind the amendment in the other place. The term “public authority” by necessity covers a wide range of organisations, from central Government bodies to local councils to arm’s length bodies and NHS contracting authorities. The number of organisations that fall under the definition of
“(a) wholly or mainly funded out of public funds including the NHS, or
(b) subject to public authority oversight,”
is exceptionally broad. With such a broad definition, there are always likely to be organisations that function on the edge of being a public body. Therefore, doubt still exists over some organisations’ status as public bodies and whether they come under the scrutiny that the Bill hands down to public bodies. There are two important examples of a vast number of bodies where such ambiguity lies: in our housing and education systems.
There is consistent ambiguity about whether housing authorities are public bodies, and the definition has a significant impact on millions of households. The latest English housing survey statistics, released in December 2022, show that approximately 2.4 million dwellings in England were managed by housing associations in 2021. The Minister will be aware that previous questions about the status of housing associations have gone to court. In Weaver v. L&Q in 2009, the Court of Appeal said that, for the purpose of the Human Rights Act, housing associations are public bodies and susceptible to claims. The Office for National Statistics has also found it difficult to put its finger on the status of housing associations, and their classification moved from private to public in 2015 and then public to private in 2017 following the passage of Government legislation.
Obviously, the status of housing authorities and their management goes far beyond the intentions of this Bill. We did not table an amendment on the issue because we understand the greater implications that tabling an amendment of that nature would have created, but I urge the Minister to address the point and give clarity on the issue, so that public bodies and housing associations have a clearer picture of what to expect from the legislation.
Kirsty Blackman
Thank you for chairing this sitting, Mr Mundell, and I thank your fellow Chair, who will be responsible for overseeing us and ensuring that we behave ourselves, which I am sure we will. I appreciate the opportunity to take part in the Committee and look forward to positive discussions about improving the Bill. I am not terribly hopeful that the Government will listen to much of what we say, but I hope they will listen even if they do not necessarily take it on board. In previous Bills, the Government tabled amendments that we had tabled. I hope the Minister will listen to some of what we say and that we can get clarity on some matters in response to our questions.
I want to make a couple of comments on the NHS. I am glad to hear the Minister’s confirmation that NHS trusts will definitely be included in the definition. It is good to have him say that in Committee, and it is helpful to the wider understanding of how the Government intend the Bill to work.
Let me comment on how procurement rules are intended to apply, and how the NHS and NHS trusts in England are moving. We need NHS reforms and NHS procurement reforms to result in two things: the best outcomes for patients and the best outcomes for people working in the NHS. Those two things are not mutually exclusive; they go hand in hand. If people have good terms and conditions, and pay that they can afford to live on, they will do a better job than if they are struggling to make ends meet and therefore worrying.
If decisions around NHS procurement are best for businesses—putting businesses’ interests first—those decisions will directly conflict with those other two aims. It may be that having some private-sector input is the best option in some situations, but it should never be the first port of call. We should run and manage the NHS so that we have fair pay and terms and conditions for people working in it, and the best possible outcomes for patients. We should outsource as a last resort. It will be interesting to see the further guidelines and the statutory instruments put forward by the Department of Health and Social Care in that regard.
It may seem odd that I am commenting on this issue, as an MP from Scotland whose NHS is entirely separate, but it has a significant impact on Scotland’s budget. How the NHS is funded in England gives rise to Barnett consequentials that allow the Scottish Government to fund the NHS in Scotland, so the less the Government are willing to spend on the NHS in England, the less the Scottish Government have to spend on our priorities, particularly in the NHS but also in other areas. I look forward to seeing the future statutory instruments and I will not oppose any of the suggestions under consideration.
Alex Burghart
Again, I thank the Opposition for their support for the amendments.
The hon. Member for Vauxhall asked an important question about housing associations. On the question of whether the definition of contracting authority includes housing associations, the proposed definition, as with its predecessor, does not address all individual bodies or categories of bodies explicitly. It is the same for multi-academy trusts. There are simply too many bodies that exist and that change over the course of time to address it that way. Rather, the definition uses a number of tests that determine whether a particular body is covered or not. As we go through the Bill line by line, we will come across those tests over and over again. Registered providers of social housing are included in our coverage schedules to the WTO Government procurement agreement under the indicative list of bodies that may be covered. The new definition aims to ensure consistency with those international commitments.
It is the case that under normal circumstances, simple oversight would not meet the test for management and control. However, in the case of registered providers of social housing, it is well understood and documented that the Regulator of Social Housing has more than simple oversight, carrying out regulatory activity that does meet this threshold—as under the existing regime as a body governed by public law. I reassure the hon. Lady that the Bill does not change that position.
I thank the hon. Member for Aberdeen North for her interest in the English NHS. We are also committed to having an excellent NHS that both supports the people who work in it and is free at point of use for all citizens.
Amendment 27 agreed to.
Clause 2, as amended, ordered to stand part of the Bill.
Clause 3
Public contracts
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to consider the following:
That schedule 1 be the First schedule to the Bill.
Government amendments 85 and 86.
Government motion to transfer paragraph 25 of schedule 2.
Government motion to transfer paragraphs 31 and 32 of schedule 2.
That schedule 2 be the Second schedule to the Bill.
Alex Burghart
We have already discussed how the majority of the Bill’s provisions cover the processes and procedures required of contracting authorities in relation to covered procurement. As that concept is based on the award, entry into and management of public contracts, it is necessary to be clear about what is meant by “public contracts”.
Clause 3 classifies three types of contracts that are public contracts and covered by the legislation. The first category is contracts for the supply of goods, services and works—provided those contracts are not subject to an exemption—that have an estimated value above an applicable threshold. The second category is frameworks—that is, contracts providing for the future award of other contracts, as defined more fully in clause 45—again provided that they are not exempt and have an estimated value above an applicable threshold. The third category is concession contracts—that is, contracts where part of the consideration lies in the rights to exploit the works or services as defined more fully in clause 8—again provided they are not exempt and have an estimated value above an applicable threshold.
Schedule 2 sets out the types of contracts for which the contracting authority does not need to apply the rules in the Bill for the contract award procedure because it is exempted from the procurement rules. Where exemptions apply only to part of a public contract—that is, the contract contains both exempt and non-exempt elements—the reasonableness test in paragraph 1(2) of the schedule will prevent the contract from being exempted if the main purpose of the contract could reasonably be separated and supplied under a different contract, and that main-purpose contract would not fall under one of the exemptions in schedule 2.
We have tabled an amendment to split schedule 2 into two parts, following consultation with bodies including the Local Government Association, which was very supportive of doing so. Part 1 will be for exemptions based on the relationship with the other party, where the contract will always be exempt if the relationship conditions are met, and part 2 will be for exemptions for specific goods and services. The reasonableness test will apply only to part 2. The Bill broadly maintains the exemptions available in current domestic procurement law, but simplifies how those exemptions are framed and ensures that the terminology used reflects domestic law.
The exemptions ensure that contracting authorities have the freedom to carry out the most appropriate procurement where the rules in the Bill would otherwise be unsuitable. Contracting authorities can also exempt a procurement from the Bill where the contracting authority determines that doing so is in the interests of national security—that power is available to all contracting authorities. National security interests can include where a procurement is too sensitive to advertise, or where the UK’s national security requires a UK capability. As is usual in legislation, national security is not defined in the Bill, in order to ensure that it is sufficiently flexible to protect the UK’s national security interests.
Defence and security contracts are exempt where local contracting is required where the armed forces are deployed or maintain a military presence in another state. Operational requirements mean that contracts need to be placed with local suppliers for speed of acquisition. That often makes it impractical and inefficient to place contracts with suppliers outside of the state in which the armed forces are deployed. Sometimes, the state requires local contracting as part of the conditions for the presence of the armed forces.
Schedule 2 also exempts defence and security contracts under international agreements. That covers Government-to-Government contracts; contracts awarded under a procedure of an international organisation of which the UK is a member, such as NATO; and cases in which the UK and another country jointly develop a product. In all those situations, the application of the domestic procurement law of one party to such an arrangement is not viable. All the exemptions are compatible with our international obligations, particularly those in the WTO Government procurement agreement.
Schedule 1 sets out the various thresholds applicable to the different categories of contract. Whether the estimated value of a contract is above or below the relevant threshold determines whether it is subject to the main regime for public contracts set out in the Bill, or to the below-threshold regime in part 6. The core thresholds in the schedule are derived from the WTO Government procurement agreement, to which the UK is a party. The threshold values in the GPA are set in special drawing rights, or SDRs. The UK is required to provide an update to the sterling equivalent of the SDR thresholds every two years—the next one will be in January 2024. For that reason, paragraph 2 of schedule 1 contains powers for an appropriate authority to update the threshold values, so that the UK remains compliant with its international obligations.
Separately, paragraph 3 provides a power to update the light-touch thresholds in rows 5, 7 and 8 of the table. Those thresholds are not determined by international obligations, and as such will be updated for different purposes—for example, to allow for inflation or reflect changing priorities for that category of contract. The defence and security thresholds in rows 1 to 3 of the table can be updated using either power, depending on whether the current policy is continued whereby they track the GPA thresholds for utilities, though that is not required by the GPA.
On amendments 85 and 86, on Report in the Lords my noble Friend Baroness Neville-Rolfe asked officials to engage with the LGA, which I previously mentioned. The LGA was concerned that the reasonableness test in paragraph 1(2) of schedule 2 would prevent public service collaborations facilitated by the exemptions in paragraphs 2 and 3 if the contract could reasonably be alternatively awarded through competitive procurement.
Paragraph 1(2) deals with contracts where exemptions apply only to part of a public contract—that is, the contract contains both exempt and non-exempt elements. It says that a contract is not exempted if its main purpose could reasonably be separated and supplied under a different contract, and that main-purpose contract would not fall within one of the two exemptions in schedule 2. However, unlike most other exemptions in the schedule, which are conditional on the subject matter of the contract, the vertical and horizontal exemptions are conditional on the relationship between the contracting parties. Provided that those strict relationship conditions are met, it is irrelevant what the activity of the contract is.
Florence Eshalomi
I have a few points to raise regarding both schedules, so will take them in turn.
Schedule 1 pertains to the threshold agreements that govern the levels above which many of the terms in the Bill become applicable to contracts. We want all contracts—whether they are for £50 or £50 million—to follow some level of basic principle in procurement: we have to ensure there is value for money for the taxpayer. However, we recognise the burden that the management of those contracts places on both the contracting authorities’ procurement managers and the companies that bid for the contracts themselves. We therefore understand the purpose of threshold levels within the system as a fair way to balance the need for scrutiny with the need to ensure the system is not over-burdensome. We also understand that the threshold levels are set by the agreement between the World Trade Organisation and the United Kingdom, and we do not wish to put an important trade agreement into jeopardy by attempting to meddle with them.
However, I have a couple of questions regarding the functioning of the schedule and the bureaucratic process that goes with amending the hard numbers in the Bill, as their real-terms value shifts in the dynamic world before us. First, does the Minister consider the mechanisms in place with the World Trade Organisation and in the Bill are sufficient to account for the current high inflation levels? The World Trade Organisation’s revised agreement on Government procurement, published in 2012, defines the current mechanism to deal with currency shifts. It states:
“The conversion rates will be the average of the daily values of the respective national currency in terms of the SDR over the two-year period preceding 1 October or 1 November of the year prior to the thresholds in national currency becoming effective which will be from 1 January...Thresholds expressed in national currencies will be fixed for two years, i.e. calendar years for all Parties except Israel and Japan”.
Having joined the GPA on 1 January 2022, we will have our threshold set at the value measured at that time until 1 January 2024. Does the Minister not see significant problems arising from having threshold levels based on the value of the pound at that time?
In December 2022, the Office for National Statistics found that inflation rose by 9.2%. If that trend is followed when the data from 2023 is released, the threshold values will be nearly 10% lower in real terms than the thresholds agreed when we joined the GPA. That is a significant amount of money, and it could draw in many contracts over the next year that have simply been the victim of weak economic management by the Conservative party.
Although there may be benefits to having extra scrutiny of more contracts, it should not happen by accident as a result of high inflation. Nor should it mean that a significant amount of contracts will be flung into scrutiny this year, then out of scrutiny on 1 January next year. I hope the Minister recognises that that creates inconsistency for businesses and procurement managers alike. Will the Minister inform the House whether steps are being taken at the WTO to assess the impact of inflation on the thresholds? What is his assessment of the impact of inflation on the rollercoaster workload of those responsible for near-threshold contracts?
Schedule 2 sets out contracts that are excluded from the definition of a “public contract” and the provisions that apply to public contracts. I understand the need for excluded contracts and do not object to any of the listed justifications for excluding contracts from the Bill. We cannot expect areas such as the intelligence services and particularly sensitive national security matters to follow all parts of an Act relating to public services. It is right for sensible and proportionate exemptions to help make procurement efficient, save people millions and run the services that we desperately need.
One such exemption is the horizontal and vertical arrangements that form paragraphs 2 and 3 of schedule 2. Those paragraphs carry over provisions from regulation 12 of the Public Contracts Regulations 2015. Vertical and horizontal arrangements are often used by local authorities to save public money. The vertical arrangements exemption, also known as the Teckal exemption, enables the award of contracts to entities that, although separate entities, are de facto in-house to the contracting authorities. The horizontal arrangements exemption, known as the Hamburg exemption, allows public authorities to co-operate to deliver services collectively.
Taken together, such arrangements give local authorities the tools to enter agreements to share services and achieve savings through economies of scale, and those savings are significant. The Minister highlighted the LGA, whose research shows that such agreements saved the public nearly £200 million in 2018-19. When we face a cost of living crisis and families are choosing between eating and putting on the heating, it is critical that we are as efficient as possible in how we run procurement. It is critical that we do not hinder innovative agreements that help councils, which have had their budgets slashed over the past decade, in saving the money they need to deliver services such as social care.
As the Bill stands, however, there is real concern that it will hinder the use of horizontal and vertical agreements within local authorities. Paragraph 1(2) of schedule 2 stipulates that
“a contract is not an exempted contract if…the goods, services or works representing the main purpose of the contract could reasonably be supplied under a separate contract”.
Groups such as the LGA have highlighted the fact that many contracts that fall under the vertical or horizontal arrangements can be supplied by a separate contract:
“It will often be the case that public services, whether front-line or back-office, could ‘reasonably be supplied’ by a provider that is not a public entity. As a result, the legislation can be interpreted as requiring the public sector to have to engage the market, even for arrangements wholly within the public sector”.
If enacted, the new wording could therefore close down models of collaboration and efficient service delivery that save public money.
Sub-paragraph 1(2)(a) of schedule 2 also opens up a new avenue of legal challenge against the public sector. From the words of Baroness Neville-Rolfe on Report in the other place, I understand that the provision is necessary to avoid a loophole when mixed contracts are inappropriately excluded. I am therefore pleased that the Government have tabled amendments 85 and 86, and I know that the LGA has worked hard with the Government to try to fix this loophole. However, I hope the Minister keeps up engagement with the LGA to ensure that the amendments fix the problem and do not create unintended threats to the existence of horizontal and vertical agreements.
Alex Burghart
On the hon. Lady’s two points, she is absolutely right that the mechanism that exists in our WTO arrangement is biennial. As I said, the next upgrade, relative to inflation, is in January 2024. There is nothing we can do about the fact that the updates are biennial—it is part of the agreement, and we have obligations internationally.
The hon. Lady is right that the high rate of inflation—which we are experiencing as a result of Putin’s dreadful war in Ukraine and the end of covid, and which is common to many western democracies at the moment—will make some previously below-threshold contracts into above-threshold contracts. There are pros and cons to that. It means that we will have a degree of extra competition that we would not have had before, but we will see a re-correction in what will now be less than 12 months.
Florence Eshalomi
Does the Minister agree on the inconsistency that this will bring for procurement managers, especially when we are proposing this legislation to cut some of the red tape and burden on those same procurement managers?
Alex Burghart
Obviously, some contracts will, as I said, be brought above threshold, and those contracts will need to be conducted in accordance with the law. However, as I said to the hon. Lady, that is something that all countries that are signatories to the WTO and that are experiencing inflation will find is happening. In some instances, it will also mean that there is better competition for contracts, which could result in lower costs to the public purse, so it is not all bad.
On mixed contracts, the hon. Lady is absolutely right. The work that my hon. Friend Baroness Neville-Rolfe did in the Lords with the LGA means that we have closed the loophole, and that is to the strength of the Bill.
Question put and agreed to.
Clause 3 accordingly ordered to stand part of the Bill.
Schedule 1 agreed to.
Schedule 2
Exempted contracts
Amendments made: 85, in schedule 2, page 84, line 11, leave out from “in” to end of line 17 and insert—
“this Part of this Schedule.”
This amendment would ensure that contracts within the new Part 1 of Schedule 2 (which will comprise paragraphs 2, 3, 25, 31 and 32) are always exempted from being public contracts.
Amendment 86, in schedule 2, page 85, line 39, at end insert—
“Part 2
Subject-matter exempted contracts
General
3A (1) A contract is an exempted contract if it is—
(a) a contract of a kind listed in this Part of this Schedule;
(b) a framework for the future award of contracts only of a kind listed in this Part of this Schedule.
(2) But a Part 2-only contract is not an exempted contract if, on award of the contract, a contracting authority considers that—
(a) the goods, services or works representing the main purpose of the contract could reasonably be supplied under a separate contract, and
(b) that contract would not be a contract of a kind listed in this Part of this Schedule.
(3) In considering whether goods, services or works could reasonably be supplied under a separate contract, a contracting authority may, for example, have regard to the practical and financial consequences of awarding more than one contract.
(4) In this paragraph ‘Part 2-only contract’ means a contract of a kind listed in this Part of this Schedule that is not of a kind listed in Part 1 of this Schedule.”—(Alex Burghart.)
This amendment would apply the exception previously applied to all contracts listed in Schedule 2 to those listed only in Part 2 of Schedule 2, ensure it operates by reference to the opinion of a contracting authority, and clarify that the authority may have regard to practical and financial consequences.
Ordered,
That paragraph 25 of Schedule 2 be transferred to the end of line 39 on page 85.—(Alex Burghart.)
This is a motion to move paragraph 25 of Schedule 2 (defence and security contracts with governments) to the new Part 1 of Schedule 2 to ensure such contracts are always exempted from being public contracts.
Ordered,
That paragraphs 31 and 32 of Schedule 2 be transferred to the end of line 39 on page 85.—(Alex Burghart.)
This is a motion to move paragraphs 31 and 32 of Schedule 2 (utilities contracts with affiliates and joint ventures) to the new Part 1 of Schedule 2 to ensure such contracts are always exempted from being public contracts.
Schedule 2, as amended, agreed to.
Clause 4
Valuation of contracts
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to consider the following:
That schedule 3 be the Third schedule to the Bill.
Clause 5 stand part.
Alex Burghart
Clause 4 and schedule 3 are fundamentally interrelated. Clause 4 requires contracting authorities to estimate the value of contracts in accordance with a simple methodology set out in schedule 3, in order to determine whether the contract is above or below threshold and consequently what relevant rules need to be followed. It also includes an anti-avoidance mechanism that makes it unlawful to exercise any discretion in valuing a contract with a view to avoiding the effects of this legislation.
Schedule 3 contains the methodology that clause 3 requires contracting authorities to follow when they estimate the value of contracts. As well as the general rules in paragraph 1 of schedule 3, there are also special rules for frameworks in paragraph 2 and concessions in paragraph 3. The anti-avoidance provision in paragraph 4 is designed to ensure that contracting authorities do not artificially subdivide procurements to evade the rules. There is also a new rule for how to proceed when an estimate is not possible; in such circumstances, contracting authorities must treat the contract as above threshold.
In general terms, the long-standing mechanism in existing regulations works well, so the Bill proposes a similar mechanism, albeit with some adjustments to take advantage of opportunities for simplification and reduction of regulation and some inevitable structural differences as we move from one style of drafting to another.
In clause 5, as there are different thresholds for different types of contract, it is important that the rules adequately address the inevitable situations our contracting authorities will face, such as where a contract contains multiple elements that are subject to different thresholds—that is, a mixed contract. The existing regulatory environment provides a mechanism, across four different regulatory schemes, that allows authorities the flexibility to separate elements into separate contracts, or to mix the elements into a single contract, subject to certain safeguards to prevent rule avoidance.
However, those rules comprise around 14 pages of legislation, are somewhat complicated and can appear repetitive due to their need to address the multifarious combinations of elements within and spanning each regime. Thankfully, the harmonisation approach taken in the Bill means these complicated and seemingly repetitive provisions can be streamlined and simplified, while continuing to provide the necessary flexibility and safeguards against rule avoidance.
Clause 5 provides a safeguard to ensure that authorities do not mix above-threshold and below-threshold contracts purely for the purposes of avoiding the rules. Of course, separate elements can always be procured separately, and mixed contracts with elements that are properly inseparable should be allowed. But the basic safeguard remains that if separation is reasonably possible, but a contracting authority chooses not to separate, a mixed contract containing both above and below-threshold elements must be treated as above-threshold and therefore in scope of the legislation. When determining whether separation is reasonably possible, the practical and financial consequences of awarding more than one contract can be taken into consideration.
Florence Eshalomi
I thank the Minister for his explanation of clause 4 and schedule 3, which relate to the estimated value of the contracts, and are both relatively short and simple parts of the Bill. However, the importance of a value estimation is critical to the Bill and the management of procurement. That particularly relates to above-threshold contracts, regulated below-threshold contracts and the application of key performance indicators, as well as the publication of high-value contracts. Given the importance of that estimation, it is critical that contracting authorities get it right and that similar contracts do not end up with widely different values as a result of the calculation values. I would like the Minister to outline the support the Government are giving to those managing procurement within contracting authorities, so that the figures are correct. I have no doubt that such work has been done, but I would welcome an outlining of it.
I welcome the clarity of paragraph 4 of schedule 3 on anti-avoidance. It is critical that all contracts should be scrutinised under this legislation and that there should be no attempt through inventive accounting to avoid them coming under the provisions of the legislation.
I would like clarity on paragraph 5 of schedule 3, which states:
“If a contracting authority is unable to estimate the value of a contract in accordance with this Schedule (for example because the duration of the contract is unknown), the authority is to be treated as having estimated the value of the contract as an amount of more than the threshold amount for the type of contract.”
While it makes sense for contracts with uncertain value to be treated as having above the threshold amount, I have a question on how that applies to the cut-off value of £5 million for key performance indicators and the publication of contracts. Obviously, we do not want every contract without an estimated value to be covered by measures designed for larger contracts. But, similarly, there will be contracts where the value will likely exceed the £5 million currently set as the limit, even when their value cannot be estimated by the clause. Can the Minister inform me whether the clause covers the higher £5 million cut-off and what steps are being taken to ensure that the right level of scrutiny is applied when the value of contracts cannot be estimated?
Alex Burghart
As I said a few moments ago, the group we are discussing is in part about making sure that we do not create another loophole where, in a mixed contract, it is possible for a contracting authority to go for a below-threshold requirement because one part of the contract is covered by that. As we discussed in the previous group, the measure is intended to make sure that we are not creating an opportunity for people to play the system.
Question put and agreed to.
Clause 4 accordingly ordered to stand part of the Bill.
Schedule 3 agreed to.
Clause 5 ordered to stand part of the Bill.
Clause 6
Utilities Contracts
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to consider that schedule 4 be the Fourth schedule to the Bill.
Alex Burghart
Clause 6 explains that a utilities contract is a contract for the supply of goods, services or works wholly or mainly for the purpose of a utility activity. Utility activities are set out in schedule 4, but do not include activities that are carried out wholly outside the UK. In the case of private utilities, they include only activities carried out where a private utility has been granted a special or exclusive right.
A special or exclusive right exists where a private utility has been granted a right under a statutory, regulatory or administrative provision that has the effect of substantially creating a monopoly situation that would limit competition. A right is not special or exclusive if it is granted following a competitive tendering procedure under the Bill or otherwise on the basis of a transparent procedure and non-discriminatory criteria.
The utility activities set out in part 1 of schedule 4 cover the water, energy and transport sectors. Part 2 of schedule 4 lists specific activities that are not utility activities. An appropriate authority may make regulations to add or remove activities from part 2 of schedule 4. However, activities can be added to part 2 only where there is fair and effective competition in the relevant market and entry to that market is unrestricted.
Schedule 4 sets out the scope of utilities activities. This largely mirrors the coverage of the existing domestic regime and reflects our commitments in trade agreements such as the WTO Government procurement agreement.
Florence Eshalomi
Clause 6 and schedule 4 relate to the procurement of utilities, covering the scope of the Utilities Contracts Regulations 2016. Historically, the procurement of utilities as defined in schedule 4 has run slightly differently from general procurement. For example, the value at which a contract passes the thresholds in schedule 1 is £426,955 for general utilities contracts, as opposed to £138,760 for central Government authorities and £213,477 for sub-central Government authorities.
I thank the Minister for explaining the mechanisms in place specifically for utilities contracts. I do not disagree with the rationale behind the systematic differences between how utilities contracts are awarded and managed and how general contracts are awarded. Following the publication of the Green Paper, the Government have responded to the sector’s concerns that the proposed system would be too onerous compared with the Utilities Contracts Regulations 2016. However, I do not believe that the measures in the Bill should subtract from the significant problems that need to be addressed in the utilities sector.
In particular, we have seen the rail sector have deeply troubling issues among some contracted-out services in the past months, and it is vital that we manage contracts in a way that will help to mitigate those risks. For those of us who come from an Italian background, the word “avanti” means “to come in”, but I think it is fair to say that the word “Avanti” will see my hon. Friend the Member for Birkenhead and many others roll their eyes in despair. The fact is that too many of Avanti’s trains have not, in fact, been coming into stations, with many cancellations and packed trains becoming a sad norm for huge swathes of the country.
Those on Avanti are not the only ones struggling. TransPennine Express, which connects places such as Grimsby, Doncaster, Sheffield and Liverpool, has also seen its performance struggle significantly. That is despite reports in The Telegraph that shareholders are due to earn a share of £75 million. For customers who turn up for their trains, day in and day out—many of whom have annual season tickets costing thousands of pounds—to see shareholders due to earn a share of that £75 million is a slap in the face. That also happened during the pandemic, when a number of trains up and down the country were cancelled, yet shareholders were again in line to pocket big payouts.
We have also seen franchises such as the east coast main line and Northern fall to the operator of last resort following the termination of the previous operator’s contract. The fact is that the operation of train contracts in this country is simply not fit for purpose. Even the Prime Minister cannot deny the problems, saying at Prime Minister’s Question Time on 30 November 2022:
“My right hon. Friend is absolutely right about the unacceptable deterioration in the quality of Avanti’s service.”—[Official Report, 30 November 2022; Vol. 723, c. 898.]
Despite the criticism from the Prime Minister, the Government went on to award Avanti with a contract extension until 1 April 2023. That beggars belief.
My hon. Friend the Member for Lancaster and Fleetwood (Cat Smith) put it best when she said:
“By giving Avanti this six-month contract extension, after months of failure and rail chaos, this Government are frankly rewarding that failure. Avanti promised to improve services back in September, and instead it has gone and cut services, introduced this emergency timetable and almost entirely stopped selling tickets online.”
I remember trying to book tickets for annual conference last year; I kept going online and refreshing the page. I stopped using the laptop and went on to the iPad, thinking it was maybe the laptop that had problems. I stopped using the iPad and went on to my phone, thinking it was the iPad that had problems. But the tickets were not for sale; they came on sale a day before we were all due to travel to Liverpool. That mad rush at the whim of the train operators, effectively holding people to ransom, is frankly unacceptable.
My hon. Friend continued:
“The provision of reliable train services is essential for the economic growth and prosperity of more than half the UK’s population.”—[Official Report, 25 October 2022; Vol. 721, c. 160.]
At this time, we are hoping to see more people leave their cars at home and use public transport so that we tackle the really serious climate emergency. However, the fact that these companies are being awarded contracts yet are failing to deliver is another way in which the Government are not taking the climate emergency seriously.
Will the Minister provide clarification on the metrics that he will use to assess improvements or, indeed, failure, given that the bar is currently set so low? It is clear that the west coast franchise has been fundamentally mismanaged by Avanti. It may be beyond the Bill’s scope to completely fix the franchising mess in this country, but it is critical that we create a culture of procurement that is carried out in a way that restores public trust and offers fair treatment to everybody across the country.
Florence Eshalomi
Thank you, Mr Mundell, for your guidance. I agree with the hon. Lady that if we want to ensure that all sectors of our economy recover after the pandemic, it is important that people can get to those places.
I hope the Minister will work with the Department for Transport in implementing these regulations to ensure that proper levels of security and resources are in the Bill. Hopefully, that will restore trust in our rail sector.
Alex Burghart
Thank you for your guidance on digressions, Mr Mundell. As the hon. Member for Vauxhall is aware, rail is not dealt with in the Bill. Schedule 2(17) states that public passenger transport services are exempt and will continue to be regulated by other means, but I believe that Transport questions are coming up shortly, so she will have the opportunity to raise her concerns with the Secretary of State.
Question put and agreed to.
Clause 6 accordingly ordered to stand part of the Bill.
Schedule 4 agreed to.
Clause 7
Defence and security contracts
Question proposed, That the clause stand part of the Bill.
Alex Burghart
Clause 7 defines “defence and security contract”, which is used in certain clauses and schedules to make specific provision for such contracts. The definition primarily covers contracts currently within the scope of the Defence and Security Public Contracts Regulations 2011, but it also includes other contracts set out in subsection(1)(g), where the defence and security provisions in the Bill are to apply.
The clause also defines a defence authority contract, which is a defence and security contract entered into by a defence authority. A defence authority will be specified in regulations. It is a contracting authority that exercises its functions wholly and mainly for the purposes of defence or national security. The clause also sets out additional definitions for terms used in the definition of “defence and security contract”.
Chris Evans (Islwyn) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr Mundell. I look forward to working with the members of the Committee and the Clerks as we work our way through this important Bill.
It is also a pleasure to serve opposite the Minister, whom I count as a personal friend. We often exchange text messages in the early hours of a Sunday morning or late on a Saturday night—I do not want anybody reading anything into that, but we are both huge boxing fans, and we are usually debating the merits of the latest big fight. The last time we faced each other, we debated the merits of Lennox Lewis, the greatest British fighter of all time. I think I won that one, but let us see how we go today.
Clause 7 sets out definitions for defence and security contracts—in particular, for the supply of a range of contracts on military equipment, sensitive equipment, logistics services, goods, services or works necessary for the development, production, maintenance or decommissioning of equipment and work that is relevant to the country’s readiness for action and the security of the armed forces. Those definitions are crucial, because defence procurement is one of the most important activities undertaken by the Government.
The Ministry of Defence is the fifth largest spender on procurement in central Government. In 2019-20, it spent £15.9 billion on procurement, and since the pandemic, that has inevitably increased. One of the key functions of a state is to defend itself, and for it to do that, we must ensure that our armed forces have the equipment they need. Our national security, our ability to defend ourselves as a nation and the lives and safety of our troops rely in part on procuring the best equipment. As a country, we have always taken that duty to our armed forces seriously, but at times, tragically, we have not reached the level they deserve. I hope that in this Committee we can work together to improve the procurement system with the shared goal of ensuring that our forces get the equipment they deserve.
Promoting public safety should be the priority of any Government, and defence and security contracts are at the centre of that principle. It is therefore crucial that we get it right. The clause speaks to the procurement of not just the supply of military equipment, but the goods, services or works necessary for the development, production, maintenance or decommissioning of such equipment.
For my sins, between 2015 and 2019, I served on the Public Accounts Committee, and I remember some very uncomfortable hearings with some—shall we say—reticent Ministers who had to explain a lot of mistakes. If there is one thing I learned, it is this: if we do not get contracts absolutely right, it is not just a waste of taxpayers’ money; it puts our safety at risk.
I know you said we should not digress from the clause, Mr Mundell, but I want to use as an example the contract for the decommissioning of the Magnox nuclear reactors. The Nuclear Decommissioning Authority failed to understand the scale and complexity of the work needed, and by the time the contract was terminated, the cost to the taxpayer, according to the National Audit Office, was £122 million. I am sad to say that that is not an isolated case—I could be here all day talking about all sorts of examples. I raise this because it is so important that procurement is undertaken with proper care and consideration, and unfortunately there are too many examples of that just not happening.
Kirsty Blackman
I am happy to have a conversation with the hon. Gentleman afterwards and ensure he has the contact details for the supplier development programme, so that it can lay out some of its concerns to him. Hopefully, he can similarly provide a gentle push in the background to ensure that everybody—both the people looking to contract and the contracting authorities looking to have the best possible contract and tender applications made—is getting the best possible outcome from this scenario.
Alex Burghart
It is a pleasure to be opposite my friend on the Opposition Front Bench, the hon. Member for Islwyn. I am sorry to say that such was the scale of his knockout defeat in that debate that it appears to have blurred his memory—we established without controversy that, as I defended, Lennox Lewis was the greatest British fighter of all time.
To the hon. Gentleman’s point, we certainly agree that it is absolutely important to get these contracts right. The spirit running through the Bill is to have a streamlined process that makes it easier for everybody to understand their opportunities and responsibilities. On the point made by both the hon. Gentleman and the hon. Member for Aberdeen North, we will see as we go through the Bill that there are many opportunities through transparency and clauses put in to support SMEs to enable British businesses of different sizes to be able to avail themselves of opportunities in procurement, generally, but also in defence. In that spirit, I look forward to having specific conversations with the hon. Gentleman on those clauses as we progress.
Question put and agreed to.
Clause 7 accordingly ordered to stand part of the Bill.
Ordered, That further consideration be now adjourned. —(Julie Marson.)
Public Procurement Processes
Alex Burghart Excerpts(1 year, 3 months ago)
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The Parliamentary Secretary, Cabinet Office (Alex Burghart)
It is a pleasure to serve under your chairwomanship for the first time, Ms McVey.
I congratulate the hon. Member for Birkenhead (Mick Whitley) on securing the debate. As the Opposition spokesperson, the hon. Member for Vauxhall (Florence Eshalomi), has already said, it is nice to have the opportunity to debate the issues with the hon. Gentleman again. I am looking forward to the next three weeks in Committee, discussing the Procurement Bill with colleagues from all parties, and to the Report stage that will follow. It is right that we debate these issues thoroughly. The Bill is a landmark piece of legislation that the Government believe will bring real benefits to public authorities, public services and ultimately to the taxpayer. These are things to celebrate.
The hon. Member for Birkenhead’s constituents voted, like mine, to leave the European Union in 2016, and the Bill is one of the landmark pieces of legislation that enables us to take advantage of freedoms that we simply did not have when we were in the EU. The response to the public consultation on the Bill showed the strength of feeling among public authorities and suppliers for change. I am pleased to say that we have developed a sophisticated piece of legislation that is rising up to meet the asks of us made by those who responded to the consultation.
We have about £300 billion of public procurement in this country. That represents a huge amount of taxpayers’ money—public money—that we think can be spent better for people at all levels. We see a chance to reduce paperwork, streamline processes, improve opportunities for SMEs, which I know is close to the hon. Member for Birkenhead’s heart and is close to mine because it is the backbone of the economy in my part of the world, and to introduce new ways of viewing procurement.
As Members will have heard me say on Second Reading, it is a shift from MEAT to MAT—from the most economically advantageous tender to the most advantageous tender. That gives public authorities a freer hand to make an assessment about whether procurement decisions will create jobs in their area, benefit the environment or create any other forms of social good that are not purely economically measured. We think this is a major step forward, and I hope he agrees.
I am afraid I cannot speak in detail about the ferry contract in the hon. Gentleman’s area, but the work we are doing on the Procurement Bill is intended to make it easier for procuring authorities to make decisions that are not based purely on money. It will enable them to look at local need and things such as jobs.
Shipbuilding is covered by our World Trade Organisation commitments, so we would struggle to confine shipbuilding contracts to British-only suppliers unless we left the WTO. That would, of course, deprive British companies of the opportunity to take advantage of the procurement agreements within that framework, which are worth about £1.2 trillion. I cannot comment on the exact specifics of the hon. Gentleman’s case in Merseyside, but there are limits to what we can do within the WTO.
Mick Whitley
I think it was three Prime Ministers ago when the Prime Minister came to Birkenhead and announced the 50-year plan for shipping. The Ministry of Defence awarded a contract to build fleet supply boats, and colleagues from Northern Ireland and Devon won it, but as soon as they did that there was a debate in the House about what kind of company Navantia was. It was registered in the UK earlier this year and its two directors come from Spain, and the majority of the work on the fleet supply boats will get done in Cadiz. That is public money; that is what we are talking about. We are talking about levelling up the left-behind towns, but that has been totally ignored.
Alex Burghart
If the hon. Gentleman is talking about fleet solid support ships, they are built to a British design. There is a huge amount of construction in Belfast and Appledore—the final assembly is completed in Belfast—bringing shipbuilding back to Northern Ireland. This is an enormous opportunity for levelling up and bringing jobs into exactly the sort of shipyards around the country that I am sure the hon. Gentleman wants to see benefit, so I do not quite recognise all the allegations he has made.
Peter Dowd
One of the issues that I am trying to tease out is that even when we were in the European Union—I know this, the Minister knows this, and so does everybody in this Chamber—those countries had an imaginative approach to public procurement, and we did not. Even under those rules, we had a less imaginative approach. Even under the provisions that the Government are bringing forward, they cannot move away from the anal retention and enable us to take a much more imaginative approach to procurement. What in the Bill is more imaginative and will enable us to do what we want and we were promised when we were coming out of Europe?
Alex Burghart
I blush to quote the hon. Gentleman back at him, but there is a lot less of the form of retention that he describes in this Bill than he would have found in the existing European rules. As he heard me say to the hon. Member for Birkenhead, the system is moving from MEAT to MAT. This is a broader understanding of what public authorities can choose to do when they procure goods and services, and that is a really good thing.
The hon. Members for Bootle (Peter Dowd) and for Birkenhead talked about buying British. This Bill will help, but we start from a strong position: between 2016 and 2019, 98% of contracts given out by public authorities in the UK went to British firms. In the Bill, we are making it easier for small and medium-sized enterprises, the majority of which are likely to be in the vicinity of public body procuring, to access contracts from public authorities. We are making it much more likely that there will be more jobs and more opportunities for growing businesses. That is very exciting and one of the most appealing things about the Bill. My noble Friend Baroness Neville-Rolfe wrote a good piece for The Times showing how we are removing barriers to engagement for SMEs in a meaningful way. She has vast experience in business and was able to shine a light on that.
Let me turn to the hon. Member for Hemsworth (Jon Trickett), who talked about insourcing and outsourcing, and the need for an ideological shift. I hope he will not mind me reminding the House that he entered the Commons in 1996 and supported one of the great outsourcing Governments—that of Tony Blair and Gordon Brown. It is so interesting to see the hon. Gentleman’s ideological shift since that time.
I gently remind the hon. Gentleman that public authorities absolutely have the freedom to insource if they think that is the best thing to do. The important thing is that they have the choice, and I hope he would not want to deprive local authorities and local councils of that choice. Maybe he would.
Florence Eshalomi
On that particular point, does the Minister recognise the issue highlighted by my hon. Friend the Member for Hemsworth (Jon Trickett), which is that a number of our local councils and public bodies have seen their funding cut over the past 13 years? The procurement teams that would be looking at bringing contracts back in house have shrunk, and a number of councils face difficult decisions—do they fund social workers or fund procurement officers? It is not as simple as saying councils have the freedom to insource.
Alex Burghart
I hesitate to remind the hon. Lady why funding for local authorities was reduced, but it had something to do with the behaviour of the Labour Government up to 2010. We all remember the letter that Labour’s Chief Secretary to the Treasury, the right hon. Member for Birmingham, Hodge Hill (Liam Byrne), left for his Lib Dem successor.
The fact of the matter is that we have highly capable local authorities across the country that manage public contracts very well and which have worked with us in the construction of the Bill to ensure they have a legal framework that helps them make the decisions they want. I have no desire at all to talk them down. I have seen their capabilities up close, and I know that they are looking forward to taking advantage of the powers they will get from the Bill.
I would also very, very gently say this to the hon. Member for Hemsworth. I know that this is political knockabout, but the statements he made about PPE procurement could have been taken to insinuate that Ministers made the awarding decisions. That is absolutely not the case. Those decisions—
Alex Burghart
The hon. Gentleman heckles me with a smile on his face, but the fact is that those decisions were made by highly capable and competent civil servants whose decisions have been upheld in court. It is wrong to suggest that they were in any way corrupt when they were trying to serve the country at a time of utter crisis in order to get, as every Member of the House wanted, as much PPE as possible when the NHS needed it most. I have listened on a number of occasions to Opposition Members speaking in such a way that suggests that Ministers handed out the contracts. That is not the case, and it would be much better for the public discourse if Opposition Members did not suggest to members of the public that that had been so.
Let me move on to the remarks made by the hon. Member for Strangford (Jim Shannon). It has been a pleasure to be able to work on the Bill with people in Northern Ireland, and the Bill is stronger as a result. We look forward to businesses of all sizes in England and Northern Ireland, and in Wales, benefiting from the new procurement legislation.
The hon. Member for Arfon (Hywel Williams) chastised the Welsh Government for allowing Westminster to legislate for them. Me and my officials have had the most productive working with the Welsh Government and these mischaracterisations imply that this is Westminster telling Wales what to do. This has been a partnership between Westminster and Cardiff and between Westminster and Belfast. It is a wonderful example of nations working together.
Hywel Williams
The Minister will know better than I that the Welsh Government are yet to recommend that the Senedd grants consent to the Procurement Bill due to two outstanding issues. The first is the presence of concurrent, rather than concurrent-plus powers. Concurrent- plus powers mean that both legislatures give their consent. The second is the lack of commencement powers for Welsh Ministers. Will the Minister give me an update on any progress on those two points?
Alex Burghart
The hon. Gentleman will get a final answer in Committee, but I can tell him that we have had nothing but productive and courteous conversations with our counterparts. I believe that we are going to end up in a mutually beneficial place, which is great news for people in Wales, England and Northern Ireland. The hon. Gentleman can join us in Committee if he wishes to hear the final read out on that. I look forward to seeing him there.
The hon. Member for Strangford is right: Northern Ireland must be included in these important opportunities. We are sad that our colleagues in Scotland have, unlike counterparts in Wales and Northern Ireland, not chosen to be part of the Procurement Bill. They are entitled to make that decision, but it is a shame. It adds a layer of complexity within the British Isles that need not be there, but c’est la vie.
The hon. Member for Aberdeen North (Kirsty Blackman) asked about trade deals and implementation. Trade deals are a reserved area. It is important that they are able to be implemented because otherwise we might find that the UK was in breach of an international agreement and that would be wrong. Yesterday, we made an amendment following discussions with the Scottish Government to narrow powers in this area and we will continue to work closely with them on implementation and, likewise, I look forward to discussing it with her in Committee; I do believe it will be her in Committee.
Kirsty Blackman
I thank the Minister. I have not seen that amendment, so I will have a good look at it. I appreciate that he has taken some action.
Alex Burghart
Super. I look forward to debating that further in the weeks ahead.
The Opposition spokesperson, the hon. Member for Vauxhall, rightly highlighted that debarment is a crucial area of the Bill. In the past few days, we have tabled new amendments on debarment, which strengthen the regime. I am not going to go into all the details now because there is ample opportunity in the days ahead, but she is right to draw attention to it. On subcontractors and 30-day payments, there are implied payment terms within the Bill. Even if it is not a subcontract, the SME can demand this and raise it. Again, we could go into further details, but we have thought through the point she raised.
In conclusion, this is a great opportunity. We have come a long way from the starting point that we found ourselves in when we were in the EU. We are starting to make British procurement rules that will benefit British taxpayers, British employees, British public authorities and British suppliers. That is a good thing for all of us.
House of Lords Reform
Alex Burghart Excerpts(1 year, 3 months ago)
Westminster HallRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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This information is provided by Parallel Parliament and does not comprise part of the offical record
Patrick Grady
That is the point; the pattern continues. We keep talking about but never actually implementing any meaningful or wholesale reform. The report does at least recognise that we cannot tackle one part of the system without tackling all of it. For all the fuss and media fanfare, it will just sit on the shelf and gather dust, as my hon. Friend suggests. Reform of the Lords and of the wider constitution becomes a second-order or a second-term issue, and the Executive can get on quietly putting to use the accumulated powers that they enjoy under the status quo.
That probably helps to explain, at least in part, the current Government’s position. They have said in various contexts that reform of the Lords is “not a priority”, despite the Conservative manifesto saying that the role of the House of Lords should be “looked at”. But now, even the modest suggestion of a cap on numbers, endorsed, as I have said, by the House of Lords itself, is too radical. The Minister who is in his place told me on 8 December at Cabinet Office questions:
“The Government do not have a view on the upper limit of the House of Lords.”—[Official Report, 8 December 2022; Vol. 724, c. 510.]
So there we go. It is quite remarkable—to infinity and beyond, the House of Lords filled with Tory donors, cronies and time servers. I have maybe saved the Minister his entire summing-up because the position appears to be that constitutional perfection in the UK has been achieved, and nothing needs to change again. Indeed, his colleague, the leader of the Scottish Conservatives, seems to have said that he does not believe there should be any further devolution of power to the Scottish Parliament, either—now or in the future. Fortunately, it is not up to them to decide.
Those of us who support independence for Scotland are often accused of obsessing about the constitution. We are told that we should focus on the priorities of our constituents—the cost of living crisis, improving public services. I agree—
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
Now you are doing my summing-up speech.
Patrick Grady
The Minister might be interested to hear this, then. I certainly do agree that those are the key priorities for people, families, businesses and communities in Glasgow North and beyond, but to really address those priorities, we need to address the fundamental systems underneath. One way of putting it would be to say:
“While many of our immediate economic problems can be fixed by pursuing better policies, by stopping the race to the bottom in our economy, Britain needs change that runs much deeper—giving the people of Britain more power and control over our lives and the decisions that matter to us. Changing not just who governs us, but how we are governed, will address a system of government that the British people perceive is broken.”
Those are not my words. Those are the words of Gordon Brown in the introduction to his report on the UK’s future. They make the case that constitutional change is needed if we are to drive radical, social and economic change. The difficulty for the Labour party, as my hon. Friend the Member for Glasgow East (David Linden) has said, is that it has been promising that for 113 years, and for 13 of those years, starting in 1997, it had a chance to change it.
At the end of those 13 years, there was a certain amount of devolution across the UK, but there was still a first-past-the-post system that stoked division rather than built consensus, and a system that allowed an individual Prime Minister to appoint whoever they wanted to a seat in Parliament—and there were 92 legislators who still had a seat in Parliament because of who their parents were.
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
It is a pleasure to speak under your chairmanship today, Sir Gary.
I join others in congratulating the hon. Member for Glasgow North (Patrick Grady) on securing this very interesting debate. I often think that we do not spend enough time in the Commons debating our constitution in the broadest sense, although I know that the hon. Gentleman is more interested in the constitution in a narrower sense. If a party is a single-issue party, it is important for it to adhere to that single issue; otherwise, what is it? Nevertheless, it is genuinely interesting to hear what the SNP thinks about the House of Lords because, notwithstanding the fact that the party has a shadow Minister for the House of Lords, as I discovered today, we do not often hear its views on such broader constitutional issues.
That said, it is atheists musing on the divine, in that, like some sort of mystic panda, the SNP intends, as my hon. Friend the Member for Totnes (Anthony Mangnall) put it in his truly excellent speech, to “eat, shoot and leave”. Were SNP Members proposing long-standing major constitutional reform with the intention of living in that new constitutional structure, I would probably have slightly more time for their arguments, but alas it is not to be. We heard today a range of complaints and grievances about the House of Lords without any alternative proposal other than that there should be an independent Scotland. The SNP is entitled to hold that view, just as it is entitled not to engage with the House of Lords by having SNP Members of it.
I cannot help but think that after the 2014 referendum which, as the SNP acknowledged at the time, was a vote for a generation, it was somewhat churlish of the SNP not to join the current House of Lords, even if it disagreed with the structure and wished to see it reformed. That would have been a way of representing Scottish views in the United Kingdom, which people in that country voted to remain part of. Because the Union continues, I am proud to say, I encourage the SNP to rethink its position of—I was about to say “abstinence”, but that is the wrong word entirely—abstaining, or staying out of, the House of Lords.
Much as I disagree with the SNP’s views, I think that the Lords Chamber would be richer for the presence of SNP Members. I would like to see more people from more parts of the United Kingdom represented there. Would that it were not so, but a lot of people vote for the SNP, and it would be good if there were SNP expertise in the House of Lords to seek to influence legislation that would have a bearing on people in Scotland. But that is a decision for the SNP. I did not come into the House of Commons to give advice to the SNP.
My own experience of the House of Lords is rather different from that of the hon. Member for Glasgow North, who is grudgingly prepared to acknowledge that maybe one or two Lords have some expertise and something to say. As a Back Bencher and as a Minister, I have attended a large number of debates in the Lords, and I am always struck by how well informed they are and their courteous nature. It is acknowledged that people on the other side of the argument are worthy of respect, even if one disagrees with their views. I have also been struck by the fact that in that forum there is a great deal of highly positive soft diplomacy on legislation. As a Minister I have seen that. You hear and absorb the views of learned folk in the upper House and you start to wonder how and whether they should be reflected in policy.
When I was first elected to the Commons, I had a conversation with—I hope he does not mind my mentioning his name—Lord Young of Cookham. I asked how he was getting on as a Minister in the Lords and he said, “Well, it is a bit of a change from being a Minister in the Commons. In the Commons you get your briefing pack from your officials, you stand up and you can feel fairly confident that you’re on firm ground. When you stand up at the Dispatch Box in the Lords, five former Secretaries of State, three former heads of the civil service and a whole bunch of expertise from the wider world are all waiting to hold you to account.” That is a level of scrutiny of which we should be proud and that we should think twice about before seeking to remove. This is a good-natured debate, but we cannot just chuck away the life experience and professional experience of people we all know are making a positive contribution to legislation in our country.
Kirsty Blackman
The Minister is making a good case for a culture change in the House of Commons. There should be more listening to experts. When we consider the Procurement Bill, will he and his colleagues listen to the words of those giving evidence? Will he listen to their expertise and consider making changes? Or will the Bill come out with no amendment that any expert has put forward other than in the House of Lords?
Alex Burghart
We have already listened very closely to arguments made in the Lords, and we have already started to make policy improvements based on some of their recommendations. That does not mean that the Government will agree to all of the amendments that the Lords have made. The important thing is the debate, because iron sharpens iron. We can pretend that we will get similar expertise—as the Opposition spokesperson, the hon. Member for Putney (Fleur Anderson), said—from a democratically elected second House, but that simply is not true, for the reasons that my hon. Friend the Member for Totnes made clear.
There are a great many people in the Lords with huge experience, perhaps towards the end of their careers, who will not want to stand for democratic election. They will not want to put themselves through that and on the doorstep, and I have sympathy with them. I understand. It would be terribly sad if we lost those people from our legislature and if we did not have their expertise. Also, alongside that expertise, there is space for people in our legislature who are of no party affiliation. I know that the hon. Member for Glasgow North has a passionate, political viewpoint. He is a passionate member of his political party, but not everyone in the country is; not everyone in the world is. There are a great many sensible, intelligent people who have a lot to give our democracy, but who do not wish to stand for election under the flag of a particular party. If we were to move to a system of proportional representation, they would have to. There would be no independence in the Commons or the Lords. That, too, would make our Houses poorer and, I think, weaker.
The Government accept, as I think everybody here accepts, that our constitution evolves. It has been in a constant state of evolution for centuries. We are alive to the fact that we will always need to consider changes. The hon. Member for Ellesmere Port and Neston (Justin Madders) and the Opposition spokesperson spoke in favour of radical reform. Were a future Government to undertake that radical reform, it would bring major risks with it. There would not just be the loss of expertise, but a conflict of mandates, as described by the hon. Member for Blackley and Broughton (Graham Stringer), who is no longer in his place. It is very easy to brush that aside and pretend that we will deal with it later or that it does not matter. I can guarantee that in the event that we had a fully elected upper House, it would start to use its mandate against the mandate of the Commons from day one, and voters would not know how long the mandate in one House would last over the other. We would very likely find ourselves in a constant cycle of elections, rather than being in a position where one party or a coalition of parties could be elected for a term and deliver based on their mandate. Those are all risks that we as parliamentarians must be alive to and aware of.
I have greatly enjoyed the debate today. It is important that from time to time we engage in debate on these major issues.
Alex Burghart
The hon. Member for Glasgow North is about to sum up, but I will let him intervene.
Patrick Grady
The Minister said the constitution evolves. As a bare minimum, do the Government agree with the findings of the Lord Speaker’s Committee on the size of the House of Lords, which said in 2017 that there should be a cap on the total number and efforts to reduce from the current number?
Alex Burghart
I refer the hon. Gentleman to the answer I gave him just before Christmas. If people do not turn up, they do not get paid. If people turn up and are involved, why not have their expertise? The Government depend on a majority in the Commons on an elected mandate. If there are more people in the upper Chamber who are capable of bringing decent scrutiny to bear on Government legislation, I have no problem with that. As I was saying, I think it is very good that we get to debate these issues, but it is also important that we do not come at debates such as these pretending that there is a perfect system out there—that we pretend that what we are doing here is laughable, and that, in other countries, they have got it absolutely right. What I do know is that, in this country, we have a fine set-up in which there is one House with a democratically elected mandate, and another House whose job it is to scrutinise and which can advise, refine and, if necessary, delay. It is a system that I think has served us well, and I believe can serve us well in the future. That said, the Government are aware that there is always room for evolution and improvement.
Sir Gary Streeter (in the Chair)
Thank you. Patrick Grady will have the final word.
Procurement Bill [Lords]
Alex Burghart ExcerptsMonday 9th January 2023
(1 year, 3 months ago)
Commons ChamberRead Full debate Procurement Act 2023 View all Procurement Act 2023 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: HL Bill 75(a) Amendment for Third Reading - (8 Dec 2022)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
I warmly welcome the new hon. Member for City of Chester (Samantha Dixon). I could not help but notice that the Chamber filled up slightly when she was speaking—almost as though she was more popular than the subject under debate today. I genuinely enjoyed her speech; as a former history teacher, the only thing I was disappointed not to hear mentioned was a beautiful silver penny from the early 10th century, which seems to show the walls of Chester. It was issued, we think, by Alfred the Great’s daughter—another great woman who represented her city.
The Bill before us is a major and exciting piece of post-Brexit legislation. It is an opportunity for this country to take back control of its procurement regime to the advantage of our businesses, our authorities, our public services and our country. I must at the outset say some words of thanks to Lord Agnew, who was instrumental in seeing this legislation drafted in the first place, to my right hon. Friend the Member for North East Somerset (Mr Rees-Mogg), who played a fundamental role in ensuring it was prepared for the statute books, and to Baroness Neville-Rolfe and Lord True, who took the Bill through in the other place.
Despite some of the remarks made by Opposition Members, I also thank the Opposition for their constructive stance towards this legislation. It is important that we get this right. Enormous opportunities are there to be taken from this £300 billion-worth of public procurement. We on the Government side of the House can very much see how those advantages will be made.
As I have said, the Bill will replace the current bureaucratic and process-driven EU regime for public procurement by creating a simpler and more flexible commercial system that better meets our country’s needs while remaining compliant with our international obligations.
John Spellar
I know that the Minister has to talk about Brexit and all the rest of it to please those on his Back Benches, but surely the real problem is not in Brussels but in Whitehall, with Ministers who will not get a grip of Whitehall and behave like every other European country by backing our own industry.
Alex Burghart
If the right hon. Gentleman had witnessed the consultation that was held on the legislation, he would see that the problem very much was in Brussels. For a very long time now, authorities and businesses of all sizes in this country have been aware of the enormous limitations in the way in which EU procurement rules are set out. The Bill cuts through that.
Alex Burghart
The right hon. Gentleman says that it does not, but the shadow spokeswoman, the right hon. Member for Ashton-under-Lyne (Angela Rayner), said at the start that it did and praised the fact that it was creating a single rulebook. This will make it easier for our authorities to procure decent services from people who will be able to provide better value for money and will be held to account better. I am very pleased that it is this Government who are bringing it forward.
Opening up public procurement to new entrants such as small businesses and social enterprises so that they can compete for public contracts is a major part of this work, as is embedding transparency throughout the commercial lifecycle so that the spending of taxpayers’ money can be properly scrutinised. The main benefits of the Bill have been reflected by hon. Members on both sides of the House, including my hon. Friend the Member for West Worcestershire (Harriett Baldwin). By delivering better value for money, supported by greater transparency and a bespoke approach to procurement, the Bill will provide greater flexibility for buyers to design their procurement process and create more opportunities to negotiate with suppliers. As my right hon. Friend the Member for North East Somerset said, that will drive better value for money.
As we slash red tape and drive innovation, more than 350 complicated and bureaucratic rules governing public spending in the EU will be removed. We are creating better and more sensible rules that will not only reduce costs for businesses in the public sector, but drive innovation. That will be at the heart of our work as we encourage authorities to publish pipelines that allow businesses of all sizes to prepare for contracts in new and interesting ways.
We will make it easier for people to do business with the public sector. The Bill will accelerate spending with small businesses. A new duty will require contracting authorities to consider SMEs, and will ensure that 30-day payment terms are made on a broader range of contracts.
We also intend to take tough action on underperforming suppliers. The Bill will put in place a new exclusions framework that will make it easier to exclude suppliers who have underperformed on other contracts. As has been mentioned a number of times, it will also create a new debarment register—accessible to all public sector organisations—that will list suppliers who must or may be excluded from contracts.
A number of hon. Members on both sides of the House have referred to the excellent work that has been done on the ProZorro service in Ukraine. I am pleased to be able to let the House know that Ukraine was on our advisory panel and has actually informed our work, and our single digital platform takes a lot from what Ukraine has done with ProZorro. The platform will enable everyone to have better access to public procurement data. Citizens will be able to scrutinise spending decisions, suppliers will be able to identify new opportunities to bid and collaborate, and buyers will be able to analyse the market and benchmark their performance against others on spending with SMEs, for example—better transparency; better for taxpayers.
Nick Smith
Will the Minister please tell us when his single digital platform will be ready for use by industry across our country?
Alex Burghart
The platform is based on a system that we already have. We are confident that we will be able to introduce it in line with bringing this Bill into force. Obviously, we have to pass the legislation and get Royal Assent, and then there will be a settling-in period. But it is going to be functional very soon.
We are also strengthening exclusion grounds. The Bill toughens the rules to combat modern slavery by allowing suppliers to be excluded when there is evidence of that, accepting that in some jurisdictions it is unlikely that a supplier would ever face conviction. My hon. Friend the Member for Totnes (Anthony Mangnall) made some important points on that score. It is absolutely right that we should be able to debar suppliers who have engaged in such dastardly crimes. It is too soon, however, to say exactly which suppliers are going to be debarred, but he has read the legislation and can see what the potential is. We will consider suppliers according to a prioritisation policy. Once on the list, suppliers will stay on it for up to five years unless they can show that they no longer pose a risk—these are the self-cleaning clauses. Any contracts awarded during an investigation can be terminated if the supplier is debarred. Safeguards are built into the grounds to stop suppliers from renaming themselves. I am happy to talk about those.
Alicia Kearns
I thank my hon. Friend for meeting me earlier today. It was enormously appreciated and I thank him for his time. How does he plan to overcome the risk of playing whack-a-mole—business after business being involved and MPs and others being relied on to flag them up? Will the procurement unit be proactive or will we instead focus on components and vulnerable sectors to ensure that we have the protections we need?
Alex Burghart
My hon. Friend raises an excellent point, which I was happy to discuss with her earlier. Obviously, the issue is under active consideration. In her speech, she also referenced debarment. I reassure her that the debarment provisions allow for proactive investigations into any supplier or subcontractor and that cases will be selected by the Minister for the Cabinet Office. Selections of cases will be governed by a robust prioritisation policy, which we will set out in due course. The debarment list will be publicly available for all contracting authorities to consult, demonstrating how transparency is at the heart of the Bill.
Value for money is a core component of what we are seeking to achieve. I assure the hon. Member for Birkenhead (Mick Whitley) that buyers will be able to give weight to bids that create jobs and opportunities for communities in the delivery of a contract, supporting and levelling up our objectives. Now that we have left the EU, central Government buyers can reserve competitions for contracts below certain thresholds for suppliers in the UK and/or SMEs and social enterprises only.
I am pushed for time, Madam Deputy Speaker, so allow me to draw my remarks to a close. This key legislation has been made possible only through our having left the European Union. It comes at a time when we have a need for a new procurement policy in this country. I say to the right hon. Member for Ashton-under-Lyne, who made a number of claims about PPE and VIP lanes, that the Bill provides strong safeguards to preserve the integrity of procurement. Equal treatment obligations require that all suppliers participating in the procurement must be treated the same. Additionally, any conflicts of interest should be identified for anyone acting for, or who has an influence on a decision made by or on behalf of, the contracting authority in relation to the procurement. If a conflict of interest puts a supplier at an unfair advantage and if steps to mitigate that cannot prevent that advantage, the supplier must be excluded. Furthermore, the direct award provisions have clear and narrow parameters for use. They include a new obligation to publish a transparency notice before making a direct award and maintain obligations to publish contract details once awarded.
This Government are absolutely committed to integrity, transparency, value for money and delivering for the British people. This Bill will make a difference to our procuring authorities, to our public services and to our taxpayers. It is good for our authorities, our taxpayers and our local communities, and it is good for our country. I commend the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second time.
PROCUREMENT BILL [LORDS] (PROGRAMME)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Procurement Bill [Lords]:
Committal
(1) The Bill shall be committed to a Public Bill Committee.
Proceedings in Public Bill Committee
(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 23 February 2023.
(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Consideration and Third Reading
(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
(6) Standing Order No. 83B (Programming Committees) shall not apply to proceedings on Consideration and Third Reading.
Other proceedings
(7) Any other proceedings on the Bill may be programmed.—(Andrew Stephenson.)
Question agreed to.
PROCUREMENT BILL [LORDS] (MONEY)
King’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Procurement Bill [Lords], it is expedient to authorise the payment out of money provided by Parliament of:
(a) any expenditure incurred under or by virtue of the Act by a person holding office under His Majesty or by a government department; and
(b) any increase attributable to the Act in the sums payable under or by virtue of any other Act out of money so provided.—(Andrew Stephenson.)
Question agreed to.
SUPPORTED HOUSING (REGULATORY OVERSIGHT) BILL (MONEY)
King’s recommendation signified.
Resolved,
That, for the purposes of any Act resulting from the Supported Housing (Regulatory Oversight) Bill, it is expedient to authorise the payment out of money provided by Parliament of any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Andrew Stephenson.)
Government Transparency and Accountability
Alex Burghart Excerpts(1 year, 4 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
My noble Friend the Minister of State (Baroness Neville-Rolfe) has today made the following written statement:
Since 2010, the Government have been at the forefront of opening up data to allow Parliament, the public and the media to hold public bodies to account. Such online transparency is crucial to delivering value for money, cutting waste and inefficiency, and ensuring every pound of taxpayers’ money is spent in the best possible way.
The Government will continue to look at how the range of information published by the Government can be improved and made as useful as possible to the public, press and Parliament. The following subject areas include documents and information that the Government are due to publish.
Routine transparency data on Ministers, special advisers and senior officials
Departments will today be publishing routine transparency data on Ministers’, special advisers’ and senior officials’ gifts, hospitality, travel and external meetings, for the period of July to September 2022. This data covers the returns for the Prime Minister, Government Chief Whip and Leaders of the House of Commons and the Lords, as well as the Cabinet Office.
Departments will also be publishing the business appointment rules advice summary for the same period.
List of ministerial responsibilities
The Government will today be publishing the list of ministerial responsibilities on gov.uk. Copies will also be deposited in the Libraries of both Houses. The list includes details of ministerial Departments, the Ministers within each Department, their portfolio responsibilities and private offices and the executive agencies within each Department.
Salaries of Members of His Majesty’s Government
The Government will today be updating the salaries of Members of His Majesty’s Government with information for the financial year 2022-2023 on gov.uk. This indicates the salaries to which Ministers are entitled and the actual salaries that they claim, along with supplementary information on ministerial salaries, allowances and payments on leaving office.
Cabinet Office annual report and accounts 2021-22
This annual report and accounts will also be laid before Parliament today. The publication includes the Cabinet Office’s audited financial statements for the year ended 31 March 2022 and a review of performance and governance arrangements. The annual report will be published on gov.uk.
Cabinet Office accounting officer system statement 2022
This publication is a single statement setting out all of the accountability relationships and processes within the Department. This update takes into account change since the previous version was published in 2020.1 have requested that a copy of the accounting officer system statement be deposited in the Libraries of both Houses. The publication will also be published on gov.uk.
Cabinet Office: Spend control data for July to September2022
Along with all Government Departments, in 2010 the Cabinet Office committed to publish quarterly data on its planned spending that has been subject to the Cabinet Office spend controls. The spend controls covered are digital and technology, commercial, property, advertising, marketing and communications, and contingent labour (as for equivalent figures published by other Departments). For the quarter covered, 12 separate items of the Cabinet Office’s own spending (with a total value of £734 million) were approved under the cross-Government Cabinet Office spending control.
Monthly workforce management information (September and October2022)
As standard, the Government are today publishing our monthly breakdown of workforce headcount and pay costs. This is a routine publication and will be published on gov.uk.
Public procurement review service—progress report 2021-22
The Government will today publish their annual progress report, detailing trends in issues raised to the public procurement review service. In this publication, we look to consider such trends and make recommendations on how to improve the service moving forwards. The report will be published, as usual, on gov.uk.
[HCWS449]
Cabinet Office
Alex Burghart Excerpts(1 year, 4 months ago)
Ministerial CorrectionsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Alex Burghart
The right hon. Lady refers to rumours in the press, but let us look at the facts. The Prime Minister has been in office for 31 days.
[Official Report, 30 November 2022, Vol. 723, c. 904.]
Letter of correction from the Parliamentary Secretary, Cabinet Office, the hon. Member for Brentwood and Ongar (Alex Burghart):
An error has been identified in my response to the right hon. Member for Ashton-under-Lyne (Angela Rayner).
The correct response should have been:
Alex Burghart
The right hon. Lady refers to rumours in the press, but let us look at the facts. The Prime Minister has been in office for 36 days.
Alex Burghart
As I have said, there is a process ongoing to appoint an independent adviser as fast as possible. The Prime Minister has been in post for 31 days, and there is standing advice on the use of WhatsApp and private messaging.
[Official Report, 30 November 2022, Vol. 723, c. 905.]
Letter of correction from the Parliamentary Secretary, Cabinet Office, the hon. Member for Brentwood and Ongar (Alex Burghart):
An error has been identified in my response to the right hon. Member for North Durham (Mr Jones).
The correct response should have been:
Alex Burghart
As I have said, there is a process ongoing to appoint an independent adviser as fast as possible. The Prime Minister has been in post for 36 days, and there is standing advice on the use of WhatsApp and private messaging.
Alex Burghart
The hon. Lady will have heard me point out that the Prime Minister, who has said he will appoint an independent adviser, has only been in post for 31 days and that a process is going on at speed. In answer to her other question, it is very much the view of this Government that it is the Prime Minister who appoints the independent adviser to give advice to the Prime Minister, who answers ultimately to Parliament.
[Official Report, 30 November 2022, Vol. 723, c. 905.]
Letter of correction from the Parliamentary Secretary, Cabinet Office, the hon. Member for Brentwood and Ongar (Alex Burghart):
An error has been identified in my response to the hon. Member for Edinburgh West (Christine Jardine).
The correct response should have been:
Alex Burghart
The hon. Lady will have heard me point out that the Prime Minister, who has said he will appoint an independent adviser, has only been in post for 36 days and that a process is going on at speed. In answer to her other question, it is very much the view of this Government that it is the Prime Minister who appoints the independent adviser to give advice to the Prime Minister, who answers ultimately to Parliament.
Draft Public Contracts (Amendment) Regulations 2022
Alex Burghart Excerpts(1 year, 4 months ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
I beg to move,
That the Committee has considered the draft Public Contracts (Amendment) Regulations 2022.
It is a pleasure to serve under your chairmanship, Mr Pritchard.
This statutory instrument has two functions. First, it amends domestic public procurement regulations to ensure that changes in calculation of VAT in the valuation of contracts do not place undue burdens on contracting authorities. Secondly, it ensures that NHS trusts and NHS foundation trusts are treated consistently for the purpose of applying certain obligations that promote transparency. This SI will only implement changes to the lower-value thresholds in the Public Contract Regulations 2015 and, therefore, only impact on the regulation of lower-value contracts. The amendments are necessary in order to address the impact of the new requirement to include VAT in the assessment of contract value. The change to how VAT is considered in estimating the value of a contract was a result of the UK joining the agreement on Government procurement, or GPA, as an independent member following EU exit.
Although the other thresholds increased as a result of applying GPA methodology to account for currency fluctuations in the last two years, the lower thresholds were not. In effect, that resulted in a reduction to those thresholds. This had the effect of bringing more contracts into scope for publication under the below threshold regime, causing additional burden on contracting authorities. This instrument will rectify this discrepancy by raising the lower threshold for central Government authorities from £10,000 to £12,000. For sub-central authorities, it will be raised from £25,000 to £30,000. This will ensure that the thresholds effectively remain the same once contract values are calculated, inclusive of VAT, thus avoiding bringing additional low-value contracts within the scope of the below threshold regime.
Turning to the second function, this instrument also provides that NHS foundation trusts are to be treated consistently with NHS trusts and be regarded as sub-central authorities. It seemed inappropriate to the Government that NHS foundation trusts should be held to central Government thresholds for publication when NHS trusts are not. These regulations will rectify this by applying the same threshold to NHS foundation trusts as the one currently observed by NHS trusts.
Alex Burghart
I thank the hon. Lady for her brief remarks. The difference in the increase is obviously because both have increased in line with VAT, which is 20%. With that, I hope the Committee will join me in supporting this SI.
Question put and agreed to.
Oral Answers to Questions
Alex Burghart Excerpts(1 year, 5 months ago)
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Sir John Whittingdale (Maldon) (Con)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
The Government monitor the effectiveness of our communication campaigns. We recognise the enormous trust that the public have in local media and the important role that local media therefore play in spreading our messages. As just one example, a recent press partnership on access to NHS services used local media to inform the public about where to seek medical advice. Some 67% of readers said that they trusted the articles, highlighting local print’s importance to communities.
Sir John Whittingdale
My hon. Friend is absolutely right about the power of local media in getting vital health messages across, but will he look at ensuring that, as well as local print media, local online-only publishers such as Nub News are included in future campaigns?
Alex Burghart
I completely agree with my right hon. Friend, who knows a great deal about the subject. “All in, all together” harnessed the power of local media and was particularly effective in reaching specific audiences to spread vital information. As he will appreciate, sometimes we want a more targeted approach to get better cost-effectiveness. I should also say that we use OmniGOV, and any local outlet—online or otherwise—that wishes to be on the list can apply by contacting OmniGOV directly.
Michael Fabricant (Lichfield) (Con)
Sir Desmond Swayne (New Forest West) (Con)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
Since 2010 the size of the central general purpose estate has been reduced by 30%, which has cut annual running costs by £1.6 billion. The “Government Property Strategy 2022-2030”, published in August, commits us to making further estate operating cost savings of £500 million by 2025 by relocating London roles, co-locating in multi-agency hubs, and selling surplus property.
Sir Desmond Swayne
The German Government have limited temperatures in public buildings to 19°C. Double that and add 30, and it is a balmy 68° in English money. We could put on an extra layer and do a lot better, couldn’t we?
Alex Burghart
I feel that my right hon. Friend could survive in sub-19°C temperatures without an extra layer, but, as he will know, the Health and Safety Executive issues advice on temperatures in workplaces. Regulations suggest that the minimum temperature for indoor working should be at least 16°C, or 13° where rigorous physical effort is required. We have the flexibility to take that action, should we wish to do so.
Jim Shannon (Strangford) (DUP)
Could use be made of empty Government properties? Given that bitterly cold weather is hitting the UK with a vengeance this week, have the Minister and the Cabinet Office considered making properties in city centres available to provide warm and dry places for those who are struggling with homelessness?
Alex Burghart
As ever, the hon. Gentleman has raised an important issue, and if he has any specific buildings in mind, I shall be happy to meet him to discuss it.
Mrs Sheryll Murray (South East Cornwall) (Con)
Rachael Maskell (York Central) (Lab/Co-op)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
I am delighted to confirm that good progress is being made on the Government hubs programme. Phase 1 has been completed by His Majesty’s Revenue and Customs, delivering 14 hubs across the UK, including two in Scotland and one each in Wales and Northern Ireland. Phase 2, led by the Government Property Agency, opened one hub last year in Birmingham, and further hubs are currently being delivered outside London in locations such as Bristol, Stoke and Peterborough.
Rachael Maskell
York has long been promised a Government hub—indeed, it was once promised the House of Lords, as the Minister might remember—but we have not yet seen the Government’s proposals. The hub’s nature and size seem to keep changing. Will he meet me to talk about the Government’s proposal and to ensure it can be co-produced so that it not only benefits the civil service but benefits York?
Alex Burghart
I am very happy to meet the hon. Lady to discuss that. The Cabinet Office is committed to growth in York, and Cabinet Office jobs, including in United Kingdom Security Vetting, are likely to move to a new hub in York in 2027. We are actively considering options on the location, and we will update the House in due course.
Alex Cunningham (Stockton North) (Lab)
Richard Burgon (Leeds East) (Lab)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
The Procurement Bill, which will be debated on Third Reading in the other place on 13 December, enacts the principles set out in the “Transforming public procurement” Green Paper. Through the combination of objectives set out in clause 12 and specific rules, we will provide clarity to contracting authorities and suppliers about how they should implement the principles.
Richard Burgon
I thank the Minister for his answer. Billions of pounds in covid contracts were handed to those with links to top Tories through the so-called VIP lanes, and much of it was for equipment that was simply unusable, yet the Government’s new Procurement Bill is so full of loopholes that all this could happen again. To help clamp down on this, will the Minister now back putting a new clawback clause in the Bill, so that in future we can get the money back from those who rip off the public?
Alex Burghart
I very much look forward to debating that Bill when it comes to this place, including with the hon. Gentleman. I remind the House that the Bill gives this country the opportunity to rewrite procurement in this country, which we could not have done while we were in the European Union, making it more advantageous to our public services and our businesses, and better for the public.
Fleur Anderson (Putney) (Lab)
We have seen in eye-watering detail this week the price the taxpayer pays when the Government lose control of procurement during a crisis and panic: billions spent on unusable personal protective equipment written off; millions spent on storing that PPE; and millions pocketed by greedy shell companies that failed to deliver. The Government have a responsibility to uphold basic standards and, especially in an emergency, to restore normal controls as soon as possible, so can the Minister explain why the Procurement Bill hands Ministers more power over direct awards than ever before?
Alex Burghart
The Bill sets out a new paradigm for public services to procure in this country. It will move us away from “most economically advantageous” tender to “most advantageous” tender. That means we will be able to take account of things such as transparency, social responsibility and fairness in a way that was not possible under EU legislation.
Anna Firth (Southend West) (Con)
Sarah Atherton (Wrexham) (Con)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
As my hon. Friend mentions, the Government Property Agency is in dialogue with the Cabinet Office’s Places for Growth programme team to identify the possible demand for relocating civil service roles to Wrexham. Discussions are ongoing in a number of regions and cities across the country; I am sure she will understand that, until further commercial negotiations are concluded and Departments have informed staff, Government hub locations cannot be confirmed. However, I can confirm that future locations are under active consideration.
Peter Aldous (Waveney) (Con)
NHS dentistry faces many challenges, one of which is ensuring that locally based practices have every opportunity to bid for contracts successfully. Can my hon. Friend set out how the Procurement Bill will enable them to do so?
Alex Burghart
This Government want NHS dental service contracts to be attractive. The intention is that the procurement of healthcare services such as dentistry will be subject to the rules set out under the anticipated provider selection regime as enacted by the Health and Care Act 2022. The Procurement Bill will apply to other services and help to break down barriers for small businesses of all kinds to engage in public sector procurement.
Brendan O'Hara (Argyll and Bute) (SNP)
On Tuesday the House passed a motion instructing the Government to release all correspondence relating to the awarding of a multi-million-pound contract with PPE Medpro. That motion went through unopposed, and the papers will be released, but shortly before that the Cabinet Office rejected a similar request from the Good Law Project, saying that disclosure would,
“make it harder for the responsible department to secure a sound financial and contractual basis for the future”,
concluding that,
“the public interest favours withholding this information”.
What changed so dramatically between that reply to the Good Law Project and Tuesday’s debate?
Sir Desmond Swayne (New Forest West) (Con)
Alex Burghart
A planned communication programme is coming this winter. Maybe we should be looking at the temperature in this House. Ambient though it is, would it not be better if we all had a chance to put on fresh jumpers to keep warm?
Grahame Morris (Easington) (Lab)
Alex Burghart
The Government do not have a view on the upper limit of the House of Lords. The House of Lords contains a great many with expertise that the hon. Gentleman could learn from.
Anna Firth (Southend West) (Con)
The planned trade union strikes threaten to disrupt not just Christmas and rail services but essential health services. Southend University Hospital is doing brilliantly in bringing on-stream two new ambulance handover units and a new winter ward. Can my right hon. Friend assure me that he will put in place contingency plans to ensure that my constituents have access to emergency healthcare at Christmas?
Counsellors of State Bill [Lords]
Alex Burghart ExcerptsThursday 1st December 2022
(1 year, 5 months ago)
Commons ChamberRead Full debate Counsellors of State Act 2022 View all Counsellors of State Act 2022 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 66-I Marshalled list for Committee - (21 Nov 2022)
The Second Deputy Chairman of Ways and Means (Mr Nigel Evans)
With this it will be convenient to discuss clause 2 stand part.
Alex Burghart
The clause provides that His Royal Highness the Earl of Wessex and Her Royal Highness the Princess Royal can be delegated royal functions as Counsellors of State during his or her lifetime respectively. Subsection (2) provides that Their Royal Highnesses are subject to the proviso and disqualification from acting as a Counsellor of State as set out in the 1937 Act.
Clause 2 establishes the short title and provides that the Bill will come into force on the day after it receives Royal Assent.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clause 2 ordered to stand part of the Bill.
The Deputy Speaker resumed the Chair.
Bill reported, without amendment.
Third Reading
Alex Burghart
I beg to move, That the Bill be now read the Third time.
These are slightly unusual proceedings; the House is not accustomed to such agreement. It has been an honour to be part of these rare proceedings—and rare they are, as our House has not had to debate such matters for nearly 70 years, since 1953. It is therefore right that I take a few moments to thank all of those who have been responsible for drawing up such important legislation so quickly. I thank particularly our excellent officials in the Cabinet Office, who in many ways are the guardians of the constitution, and the Cabinet Secretary for his particular knowledge of these matters. I also thank the right hon. Member for Ashton-under-Lyne (Angela Rayner), his Majesty’s loyal Opposition and the hon. Member for Argyll and Bute (Brendan O'Hara) from the SNP Front Bench for their genuinely constructive and supportive position on these matters.
It is perhaps fitting that we are touching lightly on these matters this year, in which we have been reminded of how the monarchy remains a fundamental part of our living and breathing constitution, as it has been since the formation of our kingdom in the 10th century. It also remains an enormous asset to our country and an intrinsic part of who we are. I am delighted that the Bill has commanded such clear support and commend it to the House. God save the King.