Procurement Bill [HL]

Baroness Verma Excerpts

Committee stage
Wednesday 6th July 2022 Grand Committee

I have great sympathy for Amendment 81, tabled by the noble Lord, Lord Wallace of Saltaire, and the need to introduce a further test to see how we can best meet our goals of public procurement and whether this is an important part of the process that seems to be missing. On that, I will sit down; thank you very much for your time.

[Baroness Verma (Con)]

My Lords, in supporting Amendments 85 and 87, I declare my interests as someone with small and medium-sized businesses in adult social care; as the chair of a renewable energy company; and as someone with 44 years of experience in the SME sector—taking away the 10 and a half years of my Front-Bench life, which excluded me from my businesses.

I start by supporting the amendments tabled by my noble friend Lord Lansley. They very much touch on what the SME sector faces constantly: the challenge of being able to enter into procurement. Today, I had a delegation of small and medium-sized manufacturers come to me from Leicester because they are fed up to the back teeth with constantly being outed from the process of some public sector contracts, with which we could reinvigorate our manufacturing sector. Covid taught us a lot about outsourcing. What we want to do is build back our insourcing. It hits all the challenges that we want to get to net zero on.

Listening to their struggles, I know, having come from the textiles industry at the early age of 19, that this country is remarkably good at producing goods if people are given the opportunities. This Bill will be one of those routes in to being able to demonstrate how much this country can focus on supporting industry, making the procurement system a lot easier. I know that, when we have to do this in adult social care, it is a nightmare to get through the processes because we as an independent business are competing with large organisations that are based overseas and have tens of thousands of pounds to put behind writing bid tenders.

I champion small and medium-sized businesses—particularly from the Midlands because that is my place and I will always champion it—but we are constantly missing out on the great talent that we have here. Reducing our carbon footprint because we can produce things here is a no-brainer for me.

I will go back to my script, which I have worked a little bit on. In its guidance on sustainable procurement, the World Bank recognises the role that procurement can play in driving sustainability goals and highlights the value-for-money benefits of sustainable procurement, stating:

“Sustainable procurement is strategic procurement practice at its optimum.”


Taking sustainable procurement considerations into account from the outset of the procurement process is critical. These amendments will help to deliver on that vision and meet the Committee on Climate Change’s recommendation in its progress report to Parliament last week that procurement decisions by all government departments be aligned with the net-zero goals.

In ensuring that contracting authorities design a procurement system that proactively seeks out suppliers who are doing the right thing and providing goods and services that help to deliver a resilient society and tackle climate change and biodiversity loss, I hope that my noble friend the Minister will look at these changes and try to incorporate them in the Bill. If we have an opportunity, we should take it now because it will save the planet and will save our own sectors in this country as well.

[Baroness Boycott (CB)]

My Lords, I am happy to support Amendments 85 and 87 in the name of the noble Baroness, Lady Worthington. As we have heard, procurement is an incredibly powerful tool and, if we do not use it in the right way, we will never get to our net-zero targets.

I thoroughly support the aim to shift the ambition of any new procurement regime to positively reward and incentivise suppliers who are innovating and providing climate-positive, sustainable products. As well as helping to achieve our climate and environmental goals, it will bring economic benefits. I would go further and say that we should not award any contracts to people who do not fulfil these categories from now on.

I note that the Government’s response to the consultation on the procurement Green Paper commented that many respondents had

“provided details of aspects that they would like contracting authorities to take greater account of, for example more focus on social and environmental impact.”

This amendment would help to ensure that contracting authorities always take this goal forward. The net-zero strategy, which many of us have referred to, clearly establishes the strategic importance of net zero at the project design stage. This amendment would make it much easier to draw this golden thread right through the procurement process to the end product.

With that in mind, I conclude that this amendment to incorporate the climate, environment and wider public benefits of procurement at preliminary market engagement when the authority’s procurement exercise is at the design stage is fully in line with policy. It needs only to be reflected in the Bill in the permissive way in which it is expressed in this amendment. I very much hope that the Minister will welcome it.

Before I sit down, I support Amendment 82 from the noble Lord, Lord Hunt of Kings Heath. As someone who has chaired many charities and tried to work with local authorities about picking up contracts that have lapsed, such as meals on wheels, I can say that you really need to know in advance what money might be available. No one should take the charities sector for granted in this respect.