Public Services: Private Sector Companies

Baroness Greengross Excerpts

Monday 28th October 2013 Lords Chamber

[Lord Wallace of Saltaire]

My Lords, that is a familiar question. There are, of course, problems of commercial confidentiality, as the noble Lord well knows. I will take it back and write to him yet again on the subject.

[Baroness Greengross (CB)]

In the light of the recent criticisms of past exercises in public procurement, can the Minister give the House an absolute assurance that the Government will in future ensure that in every such procurement the reasons and objectives are clearly laid out so that delivery can be monitored and success assessed; that a realistic and workable alternative is available so that the Government do not in the last hours find themselves negotiating over a barrel; and, lastly, that the Government are clear about which risks they will keep and, when they want to allocate those risks to the operator, how that will be achieved?

[Lord Wallace of Saltaire]

My Lords, I wish that every potential risk was clear before one ever signed a contract, as that is part of the problem. The Government are aware that part of the problem with public procurement is that it has proved easier to contract with very large-scale providers which then very often subcontract to other suppliers. We are moving towards the target of 25% of contracts going to small and medium-sized suppliers so that there are direct relations with those who are actually on the ground providing the service in the regions and the localities. That is one of the things that we hope will improve the quality.