Bain & Company: Public Sector Contracts

Baroness Smith of Basildon Excerpts

Monday 13th June 2022 Lords Chamber

[Lord True (Con)]

My Lords, there is a further Zondo commission report to be issued, I believe, later this month and there are grounds for due process. We have engaged with the company, as was set out in a letter from my right honourable friend Mr Rees-Mogg. I can repeat only that the review, about which I have told the House, will issue shortly and, based on a finding of facts, will obviously have recommendations for the Government.

[Baroness Smith of Basildon (Lab)]

My Lords, my noble friend Lord Hain’s question shows up deficiencies in the Procurement Bill as published. Schedule 6 to that Bill outlines the criteria under which a supplier must be added to the debarment list and cannot be awarded public sector contracts—my noble friend gave an example. Can I draw the Minister’s attention to Schedule 7, which provides for discretion in order to add a supplier to that list? There is really wide scope for discretionary disbarment, even on the grounds of national security, and a lack of clarity as to why it is discretionary and what criteria will be deployed in making that judgment. I listened to the Minister’s response to my noble friend and do not think it really addressed the question as fully as we would like. Given the importance of this issue and the fact that we have the Procurement Bill coming up, can the Minister commit now to publishing additional guidance, which would at least inform its Committee debates, on what considerations will be taken into account where such disbarment is to be discretionary?

[Lord True (Con)]

My Lords, there are two aspects there. I have answered on the progress so far of the Cabinet Office review of the case following the Zondo commission. As far as the Procurement Bill is concerned, we will of course be discussing these things in Committee and later. In the Bill, we are expanding the scope of misconduct that can lead to exclusion; we are also increasing the time period within which misconduct can lead to exclusion, bringing subsidiary companies into scope of inclusion and making the rules clearer so that contracting authorities can undertake exclusions with more confidence. I look forward to engaging with the noble Baroness opposite and her colleagues in the course of the Bill, and I will seek to address the questions that she has raised as we go forward.