(3 months ago)
Commons ChamberI pay tribute to my constituent Mark Ward, who is here today. He contacted me soon after I became a Member of Parliament and, like many, has continued to be a dogged campaigner. This report is some vindication, but justice will not be served until the campaigners have seen all aspects of the report being implemented.
I want to ask a few specific questions. The Minister said that he could not set the interim payments above £210,000 because of a fear of the safety of those payments. Is he therefore implying that £210,000 is the potential minimum payment that he expects? It is lower than the minimum interim payment for sub-postmasters, so I would like some clarity on what that means.
The Minister also says that he expects the payments to start within 90 days. Does he mean 90 days from now, to be completed by the summer, or a 90-day period in the summer? That was not quite clear.
Finally, public inquiries are at the gift of the Prime Minister. There is no formal way of agreeing to an inquiry, apart from campaigners and Members such as my right hon. Friend the Member for Kingston upon Hull North (Dame Diana Johnson) forcing the Prime Minister to take action, which does not seem like a coherent way to right wrongs in this country. Will we start to think about a proper public inquiries reform that includes a duty of candour, a public advocate and a way for Committees of this House to launch such inquiries when serious matters occur?
Order. Before the Minister answers those questions, I make it clear that, after a statement of this kind, each Member has the opportunity to ask a question. I am very anxious that everybody who wishes to ask a question should be able to do so on behalf of their constituents, but it really has to be one question per Member. I have been lenient with the hon. Gentleman, and I suspect that the Minister will want to answer all his questions.
On the £210,000, I took advice on the largest sum I could comfortably secure. The hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle) will see documents published today on the schemes for different conditions, and I hope things will become clearer for him. I am happy to correspond with him on that.
On the timing, I said that the payments will happen within 90 days, beginning in the summer. I cannot say which day of the summer, but 90 days is the time period.
The hon. Gentleman, like Sir Brian, spoke about how public inquiries are initiated. How that would be implemented is a matter for further conversation in subsequent weeks and debates.
I thank the hon. Gentleman for his question. We can go back to the Governments of Heath, Callaghan, Wilson, Thatcher, Major, Blair, Brown, Cameron and Theresa May; all of them come under criticism. Theresa May initiated a public inquiry with significant input from numbers of people across the House. We on the Government side have all been clear that we wish things had happened sooner, but I am doing everything I can to move this forward today, and I am resisting any attempt to politicise it.
The hon. Gentleman makes points about accountability. We have an obligation within three months of Royal Assent to make regulations that will activate the arm’s length body. We have a shadow entity in place, an interim CEO and an interim chair, and engagement is planned for the coming days, with 20 people to be employed by the end of next week. I will continue to work with anyone and everyone across the House to ensure that we meet expectations.
Just for the record, I know that the right hon. Gentleman meant to refer to the right hon. Member for Maidenhead (Mrs May) as such. [Interruption.] There is no need for an apology. The right hon. Gentleman is answering very fully and correctly, and I did not want to interrupt him.
There was much to welcome in what the Minister said today, but can I take him back to the issue of existing support schemes, which are of course incredibly important for so many? In the second interim report, recommendation 13 says that
“current annual payments under the support schemes should be continued…and guaranteed for life”
and that such payments should only be taken into account
“in assessing awards for future financial loss or care provision”.
It was not immediately clear to me that what the Minister said today is consistent with that recommendation and its implementation. Could he provide that clarity now, because this is very important for people listening?
I thank the hon. Gentleman for his thoughtful question, and I put on record my satisfaction at being in Belfast as part of the engagement exercise I undertook. In some ways, some of what Sir Brian Langstaff spoke about we could not envisage happening again, because of changes that have happened in the health service and the way things operate 40 or 50 years on, but what he talks about is much deeper: it is about the culture of transparency, dependency and candour between civil servants, the NHS and Government. That is a much more complicated set of issues to meet appropriately and fully. If the hon. Gentleman will forgive me, I will not be able to respond to his specific point today. However, he articulates the challenge that we need to meet as a Government, and I look forward to playing my part, whatever that is, in meeting it.
That concludes proceedings on the statement. I thank the Minister for having taken a very large number of questions, for having remained at the Dispatch Box for well over two hours and for having answered every question thoroughly and carefully.
(4 months ago)
Commons ChamberYes, Madam Deputy Speaker, I can so assure my hon. Friend. I am very grateful to him for bringing his professional expertise to bear within the working group. We have met twice and we intend to report at the end of June. We will then have a consistent and coherent position with which we can go forward to blend a combination of adaptation and, I hope, productive negotiations with the EU to deliver a long-lasting, permanent solution to safeguard both animal and human health on the island of Ireland. I am determined that we should do that in a coherent and professional manner, and I look forward to working with him to do so.
May I begin with a moment of unity? The Deputy Prime Minister and I are both pushing for an early general election as soon as possible. I very much welcome his recognition that there is absolutely no point in this Conservative Government carrying on in office a moment longer.
Further to the question a little earlier by my hon. Friend the Member for Weaver Vale (Mike Amesbury), this week two people were charged in this country, under the Official Secrets Act, with spying for China, one of whom worked for politicians in this House.
Order. I must stop the right hon. Gentleman. It seems to me that he is about to go down a road on a matter that is sub judice, which cannot be discussed here in this Chamber. The Speaker made a statement at the beginning of business earlier this week, asking Members not to refer to this matter, because it is sub judice. Can the right hon. Gentleman ask his general question in a different way, and not refer to that specific issue?
Thank you for your guidance, Madam Deputy Speaker. I shall ask a policy question.
The Government recently awarded a contract for a supercomputer to Lenovo, a China-headquartered firm that has been the subject of enforcement action by the United States on security grounds. This supercomputer will be used by critical Government bodies such as the UK Atomic Energy Authority. How will Ministers safeguard the public against any possible misuse of sensitive Government data as a result of the awarding of the contract?
I thank my hon. Friend for asking that question. He is a tireless campaigner on this matter, on which he has met with me and the Secretary of State for Health and Social Care. As I said to my hon. Friend, I am dealing with this matter with the permanent secretary; he will know that we have a new permanent secretary in the Department, and we are working at pace to resolve it.
Last year, the UK Government promised to relocate hundreds of civil service posts to the north-east of Scotland. It has now been confirmed that the total number will be 35. Given the billions generated in energy revenues and the unparalleled potential of our area in powering our green future, can the Minister please explain to the people of the north-east of Scotland how hundreds and 35 are now the same thing?
Earlier we heard a number of statements from the Opposition questioning ministerial integrity, but perhaps they should look closer to home—to be precise, at the first Minister of Wales and his links with donations to his leadership campaign and the Development Bank of Wales. Can the Minister tell us when the Welsh Labour party will apply to itself the standards that Labour has called for in the Chamber this morning—[Interruption.]
Order. If you all shout, I cannot hear what the hon. Lady is saying, but I think there is some doubt: the hon. Lady cannot ask the Minister a question about what the Labour party will do. Would she like to rephrase what she is saying?
With reference to the links between the First Minister of Wales, the donations to his campaign and the Development Bank of Wales, would the Minister like to describe why this is such an issue for the people of Wales while the Opposition keep shouting that we are doing the wrong thing?
On a point of order, Madam Deputy Speaker. I appreciate that standards may have changed since I was last in this place, but in answer to the question asked by the hon. Member for Glasgow North (Patrick Grady), the Parliamentary Secretary, Cabinet Office, the hon. Member for Brentwood and Ongar (Alex Burghart), rose to the Dispatch Box and said, “We have answered this question on a number of occasions.” Can that possibly be a legitimate ministerial answer? After all, that could be the answer to virtually every question that is ever asked in this House.
I thank the hon. Gentleman for his point of order. I cannot help agreeing with his final point, having sat in the Chair for thousands of hours and heard the same question answered again and again. He makes a very good point: Ministers are responsible, and have a duty to answer the question again and again. However, if the Minister thought—today or at any other time—that the appropriate answer in the circumstances was the one that the hon. Gentleman just quoted, that is not something that I can criticise, or a matter on which I can take action. As Mr Speaker has said many times, and as I am very pleased to repeat, what Ministers say at the Dispatch Box is not a matter for the Chair.
The hon. Gentleman’s point of order has brought us perfectly to just after 10.30 am. We can therefore proceed to the business question.
(6 months ago)
Commons ChamberSome 4.8 million people live in rural 5G notspots; rural areas are seven times more likely to have broadband speeds worse than those at base camp at Everest; one in five poorer homes have no internet to the home at all; and cardiac arrest phones and medical monitors still rely on analogue telephony. [Interruption.] Why are this Government such an abject failure?
Order. The House could not hear Sir Chris Bryant—[Interruption.] I will have no suggestion that that was deliberate. People may need to speak, but can they do so in a quiet voice and allow Sir Chris to re-ask his question?
Let us just stick with the punchline, shall we? Why are this Government such an abject failure?
Thank you, Madam Deputy Speaker—[Interruption.]
Order. Let us keep it a bit quieter It is not fair that we cannot hear the Minister.
We have just celebrated one year since my Department was created. In that time, we have pushed research and development funding to record levels. We have secured a bespoke deal on Horizon Europe. We have led the globe when it comes to AI safety, and we have passed the world-leading Online Safety Act 2023 and much more.
We have a plan to go even further. My Department continues to drive innovation, to create better jobs and to push economic growth. This month, we have set out our pro-innovation, pro-safety plans to regulate artificial intelligence, building on the success of the AI safety summit to cement Britain’s position as a global leader in safe and trustworthy AI. We are slashing red tape to free our researchers from pointless paperwork. We have a plan to go even further and become a science and technology superpower, and that plan is working.
I am sorry to hear of the problems that my hon. Friend’s constituents experienced. Telecommunications companies are under certain obligations to Ofcom to keep networks up and running. We are testing those resilience measures. Thankfully, gigabit broadband is a much more resilient network which, has withstood floods in York recently for example, but we hope to be able to have a much more resilient network in future.
The Government’s AI White Paper says that all jurisdictions will need mandatory reporting of frontier AI. The United States has already done it. The EU has already done it. Why is the Secretary of State waiting for a Labour Government to keep this country safe?
(8 months, 3 weeks ago)
Commons ChamberThe House will not be surprised to learn that I completely disagree with the hon. Lady’s assessment. It is not the amount of money the Welsh Government are receiving but the way in which they are mismanaging public services that is the problem. The 2021 spending review delivered the Welsh Government a record settlement of £18 billion a year, so I think that she needs to recognise that the problem is on her own side in Wales.
I welcome the hon. Lady to her role and thank her for her tribute to Baroness Kinnock and to Allan Rogers. Glenys Kinnock was an inspiration to our Labour movement, to her many friends and colleagues around the world, but most of all to her family. As the Kinnock family grieve, we send them our love and deepest sympathy.
On public spending in Wales, the Prime Minister promised, when abandoning HS2, that the north Wales main line would be electrified, at a cost of £1 billion. In the past eight years, construction costs have increased by 7% a year, because of the Government’s economic mismanagement. Will the Minister confirm that the last time any cost assessment was done on electrification was in 2015 and that the scheme will now cost between £1.5 billion and £1.8 billion?
The UK Government have spent £96 billion on measures to help the least well off across the United Kingdom throughout the difficult times brought about by the covid pandemic and the war in Ukraine. On top of that, in the autumn statement we were able to announce a cut in national insurance, which will put more money into people’s pockets. I hope that the hon. Gentleman will be talking to his constituents, who are no doubt hit by the highest taxes in the whole United Kingdom as a result of the policies of the Scottish National party Government.
May I join others in paying tribute to Glenys Kinnock, who was much loved by us all?
Earlier this year, the Secretary of State told my hon. Friend the Member for Cardiff Central (Jo Stevens) that his Government would prioritise helping the most vulnerable, yet Welsh households still face the consequences of 13 years of his Government’s economic failures, with a historically high tax burden and his own constituents paying on average £240 more each month on their mortgages. Can he explain, then, why his Conservative colleagues in the Senedd are calling for the Welsh Government to withdraw their £40 million mortgage support scheme for those at risk of repossession?
We are all thinking of the lovely Glenys Kinnock and her family, especially my hon. Friend the Member for Aberavon (Stephen Kinnock), at this sad time.
The number of emergency food parcels distributed by the Trussell—[Interruption.]
Order. Does it occur to hon. Members when they are conversing in a normal speaking tone, rather than whispering, while a Member is asking a question that it is really rude and discourteous?
Thank you, Madam Deputy Speaker. The number of emergency food parcels distributed by Trussell Trust food banks in Newport West is on the rise. In 2018, the number of parcels distributed was 1,971. In the same period this year, over 3,000 were distributed to families. There was nothing in the autumn statement that would make that situation better. Why not?
I congratulate my hon. Friend on his work to ensure that the voice of farming is heard by the Minister. Like me, he understands that farmers across this country are the beating heart of the rural economy, driving growth in rural constituencies such as mine. I must say, that attitude stands in stark contrast to that of the Labour party in Wales, which has already cut £37 million from the Welsh agriculture budget. We wait with trepidation to see what damage Labour will do to Welsh farmers next week.
I call Stephen Doughty—[Interruption.] Order. That just proves the point: Members are not paying the least bit of attention to a colleague who is about to speak—he could not even hear his name being called. It is rude to keep talking when someone is trying to ask an important question.
Thank you for your generosity, Madam Deputy Speaker. I, too, pay tribute to my very good friends in the Kinnock family after the loss of Glenys, who was a dear friend to all of us, and note the sad death of the former Member for Rhondda.
I ask the Secretary of State—
The UK Government are committed to building a strong rail infrastructure network across Wales, which will improve connectivity and drive economic growth.
I worked well with the hon. Gentleman when I was in the Government Whips Offices and I very much look forward to doing so again. I will write to him to offer a meeting about that.
Before we proceed to Prime Minister’s questions, many colleagues have asked me to pass on their best wishes to Mr Speaker in his absence. I am happy to inform the House that, although Mr Speaker has tested positive for covid and therefore cannot be present in the Chamber, he is rapidly getting better. Just as soon as that little test shows negative, he will be straight back here in his Chair.
I agree with my hon. Friend that cuckooing is an abhorrent practice that often preys on the most vulnerable in society. As part of the Government’s antisocial behaviour action plan, the Home Office engaged with relevant stakeholders about whether a new criminal offence was necessary. The results of that engagement demonstrated that a range of existing powers can be used to disrupt that activity, but of course I will ensure that the relevant Minister meets with my hon. Friend and updates her on the work we are doing to share effective practice to tackle this abhorrent problem.
The treaty, as I have said, addresses all the concerns of the Supreme Court, but it is a point of pride that we are a compassionate country that does welcome people from around the world. Let me just get the right hon. and learned Gentleman up to speed on what we are doing: we have reduced the number of illegal arrivals from Albania by 90%; increased the number of illegal working raids by 50%; and because of all the action we have taken, the number of small boat arrivals is down by one third. But what is the right hon. and learned Gentleman’s plan? What it comes down to is that he simply does not have a plan to address this problem. [Interruption.] No, no, I am probably being unfair, because he does have a plan: it is to cook up a deal with the EU that would see us accept 100,000 illegal migrants.
I have slightly lost the thread of the question. The simple point is that if you believe in stopping the boats, as we on this side of the House do, you need to have effective deterrence and a returns agreement. It is as simple as that.
The right hon. and learned Gentleman is not interested in stopping the boats, which is why he is not interested in the Rwanda plan. In fact, we know they do not want to tackle this issue, because even when this Government were trying to deport foreign national offenders from this country, they opposed it. Multiple shadow Front Benchers signed a letter to me to that effect, but I do not need to tell him that, because he signed it too! [Interruption.]
I would say that this treaty has more holes than a Swiss cheese, but I do not want to wind up the Prime Minister by talking about a European country again.
I have to give credit to the Rwandan Government. They saw the Prime Minister coming a mile off. I can only imagine their delight and sheer disbelief when, having already banked £140 million of British taxpayers’ money without housing a single asylum seeker, the Prime Minister appeared again with another offer they cannot refuse—a gimmick will send taxpayers’ money to Rwanda and refugees from Rwanda to Britain, and will not stop the boats. There was mention of Margaret Thatcher earlier—[Hon. Members: “More!”]
Order. There is understandable excitement about the mention of the name, but the House must listen to the Leader of the Opposition.
How did the Tory party go from “Up yours Delors” to “Take our money, Kagame”?
Forget the private jet; the Prime Minister is obviously on a private planet of his own. Daily Mail readers learned this week that he has begun to feel sorry for himself. He has even been heard comparing his plight to his beloved Southampton football club. I think that is a bit harsh, because the Saints have been on an 11-game unbeaten run while, as the song has it, the Prime Minister gets battered everywhere he goes.
If we want the perfect example of how badly the Tories have broken the asylum system, last week the Home Office admitted that 17,000 people in the asylum system—[Interruption.]
Thank you, Madam Deputy Speaker.
If we want the perfect example of how badly the Tories have broken the asylum system, last week the Home Office admitted that 17,000 people in the asylum system have disappeared. These are its exact words, and they are hard to believe:
“I don’t think we know where all those people are”.
Now, you might lose your car keys, you might lose your headphones, you might lose your marbles, but how do you lose 17,000 people?
My hon. Friend makes an excellent point. We have set aside £8 billion as a result of our plans on HS2, which is enough to resurface over 5,000 miles of road to improve journeys—a cornerstone of our plan—but we are also introducing a range of measures, as my hon. Friend says, to reduce congestion from roadworks. Contained in the plan for drivers is a scheme for greater fines and penalties to ensure that works finish on time. I will make sure that we look at his suggestion, and I wholeheartedly back his campaign.
Is the Prime Minister worried that he is projected to be the first Conservative party leader to lose a general election to a fellow Thatcherite? [Interruption.]
Order. We really must hear the Prime Minister, and we have a lot of questions to get through. [Interruption.] It is not the Prime Minister’s opponents who are giving him trouble.
I say to the hon. Gentleman that Margaret Thatcher’s view was to cut inflation, then cut taxes and then win an election, and that is very much my plan.
In a couple of years’ time, we will have increased spending to over £8 billion every year on free hours and early education, which will help working families with childcare costs; indeed, it is the single biggest investment in childcare in England ever. But my hon. Friend makes an excellent point, and that is why we will ensure that there is a discretionary supplement in the local authorities’ local funding formula for rural communities to account for the smaller economies of scale, so that they can continue to deliver their vital work.
Order. We are running way over time. I appreciate it would be a great disappointment to Members whose names are on the Order Paper if they were not called, so I am trying my best to call them all, but may I please make a plea for brevity?
(10 months, 2 weeks ago)
Commons ChamberI can assure the hon. Lady that we are working very hard with partners across the region to bring humanitarian aid to the people who need it as soon as practically possible.
Order. I know that a lot of people are disappointed that they have not been able to ask their particular question, but the House is grateful to the Prime Minister for having been at the Dispatch Box for two hours. I must point out in advance to all those colleagues who will come and complain to me about not being able to speak that the House has been asking the Prime Minister to use his diplomatic skills to the best of his ability on behalf of our country, so I think we must release him from the Chamber to allow him to do so. Thank you, Prime Minister.
On a point of order, Madam Deputy Speaker.
Points of order come after statements. Is this directly related to the statement?
Madam Deputy Speaker, I thank you for granting this point of order. I appreciate that the Prime Minister was at the Dispatch Box for nearly two hours, but as a result of the importance and the magnitude of this issue and the complexity and nature of our questions, nearly 50 Members did not get a chance to speak. Will you, Madam Deputy Speaker, do everything that you can to ensure that time will be afforded to us during the rest of this week and going forward so that we can debate and discuss this very important issue?
The hon. Lady makes a perfectly reasonable point. The Leader of the House is in her place and will have heard what she has said.
Further to that point of order, Madam Deputy Speaker. I know that the Foreign Secretary and his colleagues are making themselves available to speak to colleagues, because we are very aware that they will have constituency issues to discuss.
I am very grateful to the Leader of the House for giving that immediate answer. I hope the hon. Lady and the rest of the House will appreciate that Ministers are doing their best to make themselves available, especially where there are particular issues relating to constituents.
I hope the House will settle down, as we move on to the next item of business. Will those who are leaving do so quietly and swiftly?
(11 months, 3 weeks ago)
Commons ChamberWe discussed this at length on 22 June, when it was said that if the hon. Lady were to look at the resignation honours list of the former right hon. Member for Uxbridge and South Ruislip, she will see many people who conducted a great deal of public service and deserved to have that service recognised. We have not yet seen the list of the right hon. Member for South West Norfolk (Elizabeth Truss), but it is worth remembering that people who are honoured in our system have often contributed greatly to our country.
Before we proceed, the House may wish to join me in wishing the Minister a happy birthday.
Thank you, Madam Deputy Speaker. What nicer way to spend one’s 28th birthday? Alas, I am not 28.
That is simply not the case. If the hon. Gentleman had listened to the exchange, he would have heard that the Prime Minister answered comprehensively every question raised by the Leader of the Opposition and demonstrated a far greater understanding of the detail of this than that demonstrated by his opposite number.
I call the spokesperson for the Scottish National party.
Last year, the Prime Minister said that his Government would do “everything we can” to recover covid fraud losses, yet the crony PPE VIP lane helped Tory-linked business owners over small and medium-sized businesses, meaning that £15 billion of taxpayer money was wasted on useless PPE. The Public Accounts Committee found it “unacceptable” that the Government are not prioritising recouping misused money, with only £21 million—only 2%—recovered from fraudsters. What steps is the Secretary of State taking to fulfil his Government’s pledge to reclaim misused taxpayer money? Or is that, like the Prime Minister’s promise of integrity and accountability, another failed vow?
I was trying to glimpse the British border target operating model within that question. The Government have taken a range of measures in order to help bring down the cost of living for people, notably the very considerable help we have given people with the cost of fuel.
Thank you, Madam Deputy Speaker; it is great to see you in the Chair so early in the day. Members will be aware that the Government attempted to sneak out in the summer that announcement about the utter chaos they have created over the border target operating model. I say to the Minister that inflation is of central relevance to this matter, because the cat is out of the bag. The Government’s own document concedes that these measures, when introduced, will have an impact on inflation and will make the cost of food even higher. Can the Minister set out what assessment has been made of the wasted money and the cost to taxpayers and businesses as a result of the Government’s chaos on this issue?
I thank my hon. Friend for his very important question. Alongside a lot of the support mechanisms we have introduced—Operation Fortitude, Operation Courage, Operation Restore and Operation Nova—we have a series of missions or sector initiatives for accelerating veterans who have come out of the military with specialist skills into a job and making sure those skills are not going to waste. Having a job remains the No. 1 factor in improving the life chances of veterans. Veteran employment is at 87%—it has never been higher—but there is more to do, and I look forward to working with my hon. Friend in the months ahead.
It is clear from their actions that the Tories want to privatise our health service, selling data from England’s NHS to a Trump-backed business, Palantir, under a £27 million data deal. This was done without a competitive tender. Not only that, but they also accepted a £5 million donation from a rich health tycoon this week. Does the Deputy Prime Minister not agree with me that the only way to guarantee protection and integrity for Scotland’s NHS is to keep it out of Westminster Tory hands and keep it in the hands of the people of Scotland?
I hope the hon. Gentleman is not suggesting that people can only vote if they have a passport or driver’s licence. If he does not know that that is untrue, he now does. We have had a widespread publicity campaign to ensure that people understand the identity requirements at elections. At the local elections, despite considerable scaremongering from Opposition parties, the disruption was minimal.
That concludes questions. I pause for a moment to allow the change of dramatis personae on the Front Bench—there is quite a lot of movement this morning.
(1 year, 1 month ago)
Commons ChamberI warmly welcome the Government’s decision and the announcement by Tata, which highlights the UK’s tech potential—
Order. I beg the right hon. Gentleman’s forgiveness. I was being distracted by another right hon. Gentleman, who ought to know better, and I therefore did not call the Minister to answer. I do apologise.
I think maybe we got a bit noisy as we were trying to fully digest the slightly delusional response of the Opposition Front Bencher, the hon. Member for Stalybridge and Hyde (Jonathan Reynolds), to this statement. Our job as representatives of the automotive sector is to praise, protect and promote, not to play politics, especially with investment this substantial.
Tata’s investment is so substantial. It is 40% of the gigawatts that we need, and fundamentally we need to have 100% by 2030. With Tata and Envision, we are two thirds of the way there. Obviously we want more, but we are not going to be complacent. We should not compare ourselves with the rest of Europe when their needs will be substantially different from ours, but let us take a moment to reflect on what is happening internationally. This is a global race to achieve net zero. Tata has decided to come here to the UK because it has faith in UK workers, UK technology and UK innovation. It has confidence in the UK supply chain, but fundamentally it has confidence in the UK Government’s policy when it comes to advanced manufacturing and the automotive sector.
The hon. Gentleman spoke about the automotive transformation fund, which is a £1 billion fund to support exactly this sort of initiative, but let us just reflect on the bonanza—I am not sure that is the right term—that the Opposition are offering. It is £28 billion in their plan, which is a lot of money for the taxpayer to front up for an un-costed plan that, as far as I am aware, is not endorsed by anyone in the advanced manufacturing sector and what they want to achieve. As we are getting close to our summer holiday, the £28 billion of un-costed promises that the Opposition are making are a bit like lines in the sand. We can look down at them, but the tide of reality will come in.
The Opposition’s proposals mean nothing to industry or to job creation. They are created within the Westminster bubble. [Interruption.] If the Opposition do not believe me, they should listen to the Society of Motor Manufacturers and Traders, the umbrella organisation for the automotive sector. It has talked about the substance in the UK supply chain, which will be a part of this initiative going forward. Unlike anywhere else in Europe, we have a fantastic supply chain with graphene, silicon carbide wafers—I am learning so much—power electronics, batteries and powertrains. It is a substantial boost to our supply chains in the UK. As the hon. Gentleman knows, I am working not only on our critical minerals strategy but on our supply strategy, to make sure we are using UK innovation and UK goods across all our supply chains, and in particular in the automotive sector. I urge him to have some humility and to reverse, and to praise, promote and protect the sector, and definitely not to play politics with it; that is a very weak thing to do.
There are challenges dealing with the rules of origin. As the hon. Gentleman knows, not only the Prime Minister but the Secretary of State are in intensive talks with the European Union. This is an issue not just for the UK; it is also about cars made in the EU being transported into the UK. It is a two-way system. I urge everybody in the House who has contacts with European counterparts to ensure that they make it very clear that this will be damaging for European car manufacturers as well.
Let me turn to the zero-emission vehicle mandate. I have taken many a delegation to the Department for Transport, which is responsible for this bit of policy, and I am keen to back business. The consultation has concluded and results will come through, and we will continue to work with the DFT. My position has always been to back the automotive sector. The hon. Member for Stalybridge and Hyde does not seem to appreciate how substantial the investment is. We should be focused on the £4 billion, the 4,000 jobs and the resilience in the supply chain—the 2,500 small firms across most of our constituencies that will be getting some support because of this fantastic confidence in the UK car and automotive sector, and fundamentally in UK policy when it comes to advanced manufacturing.
I warmly welcome the Government’s announcement and Tata’s decision, which highlights the tech potential of the UK. Does the Minister agree that our longer-term strategy, as I think she was setting out, is that we will not be able to engage in a bidding war on subsidies with the US, China and the EU, and that our comparative advantage will be shoring up the supply chain in the context of EV batteries, which means lithium deposits in the south-west and our emerging refinement capacity in Teesside?
It is great that we have a major commitment to one of the biggest gigafactories in Europe. That will generate even more investment and more interest in building gigafactories in the UK. We will, of course, consider all proposals for sites that are brought forward by commercial partners who see value in building gigafactories in the UK. This commitment shores up what we have, takes us towards where we need to be in 2030, and will help us meet our need for batteries, but it will also attract new investment. This is a massive vote of confidence in the UK economy and the UK’s policies on the automotive sector.
May I wish everyone a wonderful summer break, and thank all staff, especially the staff in the Tea Room, who enable us to get through our very long days?
Indeed. I thank the Minister on behalf of everybody who works in this building. I thank her for taking questions.
(1 year, 1 month ago)
Commons ChamberI call the Minister, Mr Johnny Mercer. [Interruption.]
I beg to move,
That this House approves the Eighth Report of the Committee on Standards, Session 2022-23, HC 228, on All-Party Parliamentary Groups: final proposals and, with effect from 16 October, the Rules for All-Party Parliamentary Groups contained in the Annex of that Report, subject to any transitional arrangements agreed by the Committee on Standards.
I think I heard the hon. Member for Rhondda (Sir Chris Bryant) shout “Really?” from a sedentary position, at the thought that I am here for this debate, but he must understand that I have had a deep and long interest in all-party parliamentary groups.
APPGs play a valuable role in our parliamentary system. They bring together parliamentarians and external experts to further cross-party consideration of important issues. It is paramount that any new rules do not deter APPGs, particularly those that are self-funded, from meeting, because these forums aid the development of public policy on matters that otherwise may not be considered by Parliament. Rather, the new rules should seek to increase transparency, limit undue influence and secure the parliamentary estate, while allowing APPGs to perform their vital functions.
The Government are grateful to the Standards Committee for reviewing the rules governing these groups to ensure that they remain fit for purpose. It is right that we give existing APPGs an opportunity to comply with the new system, so I am grateful to the Parliamentary Commissioner for Standards for outlining the need for transitional arrangements to implement the rules.
APPGs are able to play an important role in Parliament by virtue of their informal status, but I believe these groups should be held to high standards and operate in keeping with the broader principles shared across the Houses, which are that Parliament should be transparent, protected from undue influence, and boast a reputation that is cherished at home and envied abroad. The reforms being proposed represent an important step towards this objective, and as per the Government’s response in June, we welcome the Committee’s consideration of whether the rules on foreign contributions could be strengthened at a later stage. I look forward to this debate, and I commend the motion to the House.
(1 year, 1 month ago)
Commons ChamberSo many—too many to list right now.
We also need to look at battery recycling. We want to create a regulatory space that supports the appropriate treatment of EV batteries. The Department for Environment, Food and Rural Affairs is currently reviewing existing UK batteries legislation and working at pace to publish a consultation in the second half of 2023. We have also funded the Faraday battery challenge, which has enabled research into the safe and efficient segregation and repurposing of EV battery cell components. Altilium is exploring how to recover the critical metals from old EV batteries and process them effectively so that they can be reused in new batteries. Reblend aims to develop the core processes and capabilities for a UK-based automotive battery recycling industry that can recover cathode materials from production scrap and end-of-life automotive and consumer batteries for reuse in automotive batteries going forward. We are not only trying to get close to host countries and make sure that we are mining ethically, but seeing how we can ensure that we are recycling batteries.
The Minister of State at the Department for Transport, my right hon. Friend the Member for Hereford and South Herefordshire, will touch on a few issues about the zero-emission vehicle mandate, so I will quickly touch on rules of origin. To support the transition, we must not only champion innovation but address all barriers to trade with partners and markets all over the world. Our closest trading partner is of course the EU, with whom we share not only climate goals and a trajectory towards electrification, but deeply integrated supply chains. More than 50% of cars manufactured in the UK and exported are destined for EU consumers. For those reasons, I am working closely with the industry to address its concerns about planned changes to the rules of origin for electric vehicles in the trade and co-operation agreement between the UK and EU.
Since signing the deal, unforeseen and shared supply chain shocks have hit the auto industry hard. That has driven up the cost of raw materials and battery components, making it harder to meet the changing rules. That risks industry on both sides facing tariffs on electric vehicles at a crucial time in the transition to electrification. I am determined to seek a solution to this shared problem and will work with the EU to fix it for 2024. The Prime Minister has raised the issue directly with European Commission President Ursula von der Leyen, and I and other Ministers are engaging with our EU counterparts. We will continue to work closely with industry to address any and all blockers to the electric transition so that our great UK auto industry continues to benefit from access to global markets and UK consumers have the best possible options as we make the switch to electric vehicles.
I wanted to touch on hydrogen, but I believe I am running out of time. I was also going to reflect on success in the aerospace sector, which is very much linked to the automotive sector, but I will not because I can see that you would like me to conclude, Madam Deputy Speaker.
Order. For the sake of clarity, there is plenty of time for the debate and the hon. Lady can take as long as she wants. She has so far held the floor for 32 minutes. It is not for me to judge how long she ought to speak for; it is for her to judge the mood of the House.
Well, I think the mood of the House is to be more positive about the automotive sector. I could list even more stories, but I will conclude because I believe that Opposition Members would despair about all the positivity about the automotive sector that we could talk about and reflect on.
We are home to more than 25 manufacturers that build more than 70 different vehicles in the UK, all of which are supported by 2,500 component providers and some of the world’s most skilled engineers. It is incredibly important to reflect how difficult it has been for the automotive sector globally, but of course we have huge success stories here in the UK. In 2022 we exported vehicles to more than 130 different countries and built more than three quarters of a million cars, with the onwards trajectory rising year on year. This is a healthy sector going above and beyond not only to reskill and upskill, but to meet net zero targets.
The Government are supporting the UK automotive industry, and the sector is a stalwart example of innovation and dynamism to the rest of the world. It is a great sector to get into, whether someone joins it as an apprentice or even by taking on a regular job. Of course, there is more to do. There are more opportunities to secure as we transition to zero-emission vehicles and we realise the potential of connected and autonomous mobility. We have already achieved a great deal in partnership with this fantastic sector, but we are determined to do more. We work with the sector—we do not sit in Westminster coming up with plans that we then U-turn on—and that has given the sector the confidence it needs to continue to invest in the UK. The job of those representing the sector is to praise, promote and protect, not to talk the sector down.
(1 year, 2 months ago)
Commons ChamberI beg to move, That the clause be read a Second time.
With this it will be convenient to discuss the following:
New clause 1—Removal from the procurement supply chain of physical surveillance equipment produced by companies subject to the National Intelligence Law of the People’s Republic of China—
“(1) Within six months of the passage of this Act, the Secretary of State must publish a timeline for the removal from the Government’s procurement supply chain of physical surveillance equipment produced by companies subject to the National Intelligence Law of the People’s Republic of China.
(2) The Secretary of State must lay the timeline before Parliament.”
New clause 9—Application of this Act to procurement by NHS England—
“(1) Omit sections 79 and 80 of the Health and Care Act 2022.
(2) For the avoidance of doubt, the provisions of this Act apply to procurement by NHS England.”
This new clause includes the NHS under this Act and procurement by NHS England under the Health and Care Act 2022.
New clause 10—Tax transparency—
“(1) This section applies to any covered procurement for a public contract with an estimated value of £5 million or over.
(2) When assessing tenders under section 19 or awarding a contract under section 41 or 43, a contracting authority must require the submission of a tax report where a supplier is a multi-national supplier.
(3) Where a multi-national supplier fails to submit a tax report, a contracting authority must exclude the supplier from participating in, or progressing as part of, the competitive tendering procedure.
(4) Subject to subsection (5), a contracting authority that enters into a contract with a multi-national supplier must publish a copy of the tax report—
(a) if the contract is a light touch contract, before the end of the period of 120 days beginning with the day on which the contract is entered into;
(b) otherwise, before the end of the period of 30 days beginning with the day on which the contract is entered into.
(5) Where a copy of a contract is by virtue of regulations under section 95 published under section 53(3) on a specified online system, the tax report relating to that contract must be published on the same specified online system—
(a) if the contract is a light touch contract, before the end of the period of 120 days beginning with the day on which the contract is entered into;
(b) otherwise, before the end of the period of 30 days beginning with the day on which the contract is entered into.
(6) A ‘multi-national supplier’ is a supplier with two or more enterprises that are resident for tax purposes in two or more different jurisdictions.
(7) A ‘tax report’ means a report setting out—
(a) the income booked in the UK,
(b) the profit before tax attributable to the UK,
(c) the corporate income tax paid on a cash basis in the UK,
(d) the corporate income tax accrued on profit/loss attributable to the UK, and
(e) any other information specified in regulations under section 95
for the multinational supplier.
(8) A Minister of the Crown may by regulations amend this section for the purpose of changing the financial threshold.”
This new clause would require large multinational corporations bidding for a public contract to provide information about their Income booked in the UK, their profit before tax attributable to the UK, their corporate income tax paid on a cash basis in the UK and their corporate income tax accrued on profit/loss attributable to the UK, and that information to be published.
New clause 11—Public interest—
“(1) Where a contracting authority is considering outsourcing public services that are at the time of consideration delivered in-house or where contracts are due for renewal, the contracting authority must demonstrate that they have considered whether outsourcing or re-contracting provides greater public value than direct service provision.
(2) As part of the duty in subsection (1), the contracting authority should demonstrate that it has assessed the potential benefits and impact of outsourcing the service in question against a public sector comparator with assessments being based on criteria to be set by the Secretary of State, including taking a five year consideration of—
(a) service quality and accessibility;
(b) value for money of the expenditure;
(c) implications for other public services and public sector budgets;
(d) resilience of the service being provided;
(e) implications for the local economy and availability of good work in relevant sub-national labour markets;
(f) implications for public accountability and transparency;
(g) effect on employment conditions, terms and standards within the provision of the service to be outsourced and when outsourced;
(h) implications for public sector contributions to climate change and environmental targets;
(i) implications for the equalities policies of the contracting authority and compliance with the public sector equality duty.
(3) The contracting authority and the supplier of the outsourced service must monitor the performance of any contracted service against the public interest test and the stated objectives set by the contracting authority pre-procurement to demonstrate that outsourcing the service in question has not resulted in a negative impact on any of the matters mentioned in subsection (2)(a) to (i).
(4) The Secretary of State must from time to time set budget thresholds for when a public interest test would be required.”
The new clause would create a process to ensure that contracting authorities safeguard the public interest when considering whether or not to outsource or recontract services.
New clause 12—Protection of subcontractors’ payments under construction contracts—
“(1) A project bank account must be established for the purpose of subsections (2) to (4) in accordance with the following requirements—
(a) the account must be set up by the contracting authority and the contractor under a construction contract as joint account-holders;
(b) the monies in the account are held in trust by the contracting authority and contractor as joint trustees;
(c) the contracting authority must deposit in the account all sums becoming due to the beneficiaries and any disputed sums must remain in the account until the dispute is resolved and any retention monies remain in the account until they are released to the beneficiaries;
(d) due payments from the account must be made to all beneficiaries simultaneously; and
(e) the beneficiaries include—
(i) the contractor;
(ii) all subcontractors where the value of each subcontract is at least 1% of the value (excluding VAT) of the construction contract entered into between the contracting authority and the contractor; and
(iii) any other subcontractor which has specifically requested that its payments be discharged through the account.
(2) Subsections (3) and (4) have application to construction contracts having a value in excess of £2 million (excluding VAT).
(3) Not later than 30 days after entering into a construction contract a contracting authority must ensure that a project bank account is in place.
(4) In the event that a contracting authority fails to comply with this subsection the construction contract ceases to be valid and may not be enforced by either party.
(5) The Secretary of State must provide statutory guidance on the operation of project bank accounts to ensure that such operation is standardised amongst all contracting authorities.
(6) Subsections (7) to (10) apply where retention monies are not protected within a project bank account.
(7) The contracting authority must establish a retention deposit account with a bank or building society which fulfils the requirements of subsection (1)(a) and (b).
(8) On each occasion that retention monies are withheld the contracting authority must lodge them within the retention deposit account and maintain a record of the names of each subcontractor having contributed to the withheld monies and the amount of the monies contributed by each.
(9) Subject to subsection (10), not later than 30 days after the date of handover of each subcontracted works at least 50% of the withheld retention monies must be released, and not later than the date which is 12 months from the date of handover of each subcontracted works the balance of the retention monies must be released.
(10) A contracting authority has a right of recourse to subcontractors’ retention monies but such right is limited to any subcontractor which is in default of its subcontract in having delivered works which are defective and in breach of the subcontract.
(11) Paragraphs (9) and (10) also apply where retention monies are protected in a project bank account.
(12) Non-compliance with subsections (6) to (11) renders any entitlement to withhold retention monies in a construction contract or subcontracts of no effect.
(13) Subsections (6) to (12) do not affect the right of any subcontractor to pursue recovery of any outstanding or wrongfully withheld retention monies against its other contracting party.
(14) The Secretary of State must provide statutory guidance on the operation of retention deposit accounts to ensure such operation is standardized amongst all contracting authorities.
(15) Any dispute under this section is referrable to adjudication in accordance with section 108 of the Housing Grants, Construction and Regeneration Act 1996.
(16) The Secretary of State must carry out a review of the operation of this section within 5 years of it coming into force.
(17) In this section—
“bank” has the meaning given to it in section 2 of the Banking Act 2009;
“building society” has the meaning given to it in section 119 of the Building Societies Act 1986;
“contractor” is the party engaged under a construction contract with a contracting authority;
“construction contract” has the meaning given to it in section 104, Housing Grants, Construction and Regeneration Act 1996;
“handover of each subcontracted works” signifies the date when the works as defined in each subcontract are substantially complete;
“project bank account” is an account set up with a bank or building society which has the requirements listed in subsection (2);
“retention monies” mean a proportion of monies withheld from payments which would otherwise be due under a construction contract, subcontract or any ancillary contract the effect of which is to provide security for the current or future performance by the party carrying out the works;
“subcontract” and “subcontractor” includes sub-subcontracts and sub-subcontractors.”
This new clause ring-fences monies due to subcontractors in construction supply chains through mandating use of project bank accounts and ensuring retention monies are safeguarded in a separate and independent account.
New clause 13—Dependence on high-risk states—
“(1) The Secretary of State must within six months publish a plan to reduce the dependence of public bodies upon goods and services which originate in whole or in part in a country considered by the United Kingdom as a high risk sourcing country.
(2) For the purposes of this section, a country is considered a high risk sourcing country by the United Kingdom if it is defined as either a systemic competitor or a threat in the latest Integrated Review of Security, Defence, Development and Foreign Policy.”
New clause 14—Procurement and human rights—
“(1) A contracting authority may apply a policy under which it does not contract for the supply of goods, services or works from a foreign country or territory based on the conduct of that foreign country or territory relating to human rights, provided that—
(a) the contracting authority has a Statement of Policy Relating to Human Rights, and
(b) that statement of policy is applied consistently and not specifically to any one foreign country or territory.
(2) Within six months of the passage of this Act, the Secretary of State must publish, and lay before Parliament, guidance on the form, content and application of Statements of Policy Relating to Human Rights for the purposes of subsection (1).
(3) Contracting authorities must have regard to the guidance published under subsection (2) when applying a policy in accordance with subsection (1).”
This new clause would enable public authorities to choose not to buy goods or services from countries based on their human rights record. They would not be able to single out individual nations to apply such a policy to, but would have to apply it consistently, and in accordance with guidance published by the Secretary of State.
New clause 16—Eradicating slavery and human trafficking in supply chains—
“(1) The Secretary of State must by regulations make such provision as the Secretary of State thinks appropriate with a view to eradicating the use in covered procurement of goods or services that are tainted by slavery and human trafficking.
(2) The regulations may, in particular, include—
(a) provision as to circumstances in which a supplier is excluded from consideration for the award of a contract;
(b) provision as to steps that must be taken by contracting authorities for assessing and addressing the risk of slavery and human trafficking taking place in relation to people involved in procurement supply chains;
(c) provision as to matters for which provision must be made in contracts for goods or services entered into by contracting authorities, including mandating or enabling the use of forensic supply chain tracing.
(3) In this section— “forensic supply chain tracing” is the process of using forensic techniques to track the movement of goods and services through a supply chain; “slavery and human trafficking” has the meaning given by section 54(12) of the Modern Slavery Act 2015; “tainted”: goods or services are “tainted” by slavery and human trafficking if slavery and human trafficking takes place in relation to anyone involved in the supply chain for providing those goods or services.”
New clause 17—Food procurement—
“(1) A public contract which includes the supply of food must include provisions ensuring that the supply of food under that contract—
(a) is aligned with the Eatwell Guide, and
(b) includes options suitable for a plant-based diet.
(2) The ‘Eatwell Guide’ is the policy tool used to define government recommendations on eating healthily and achieving a balanced diet published by Public Health England on 17 March 2016, as updated from time to time.”
This new clause would require public contracts for the supply of food to be aligned with current nutritional guidelines and to include plant-based options.
Amendment 14, in clause 2, page 2, line 15, after “funds,” insert “including the NHS,”.
This amendment includes the NHS in the definition of a public authority for the purposes of this Act.
Government amendments 19 and 20.
Amendment 60, in clause 13, page 10, line 11, at end insert—
“(3A) When the Minister lays the statement before Parliament, the Minister must also lay before Parliament a report which sets out—
(a) the Secretary of State’s assessment of the impact of the statement on meeting environmental and climate targets,
(b) the steps the Secretary of State has taken or intends to take in relation to procurement to support the meeting of those targets.”
This amendment would require the Secretary of State to explain in a report laid before Parliament the Government’s assessment of the impact of the national procurement policy statement on meeting environmental and climate targets and to set out any intended steps in relation to the meeting of those targets.
Amendment 4, in clause 19, page 13, line 31, at end insert—
“(aa) must disregard any tender from a supplier that does not guarantee the payment of at least the Real Living Wage to all its own employees and contracted staff and those of any sub-contractors;”
This amendment, together with Amendments 5 to 8, is designed to ensure that no public contract can be let unless the supplier guarantees the payment of the Real Living Wage to all those involved in the delivery of the contract.
Amendment 5, in clause 41, page 28, line 26, at end insert—
“(3A) A contracting authority may not award a contract under this section to a supplier that does not guarantee the payment of at least the Real Living Wage to all its own employees and contracted staff and those of any sub-contractors.”
See explanatory statement to Amendment 4.
Amendment 1, in clause 42, page 29, line 14, at end insert—
“(3A) Provision under subsection (1) must not confer any preferential treatment on suppliers connected to or recommended by members of the House of Commons or members of the House of Lords.”
This amendment is intended to prevent the future use of “VIP lanes” for public contracts.
Government amendments 21 to 23.
Amendment 6, in clause 43, page 30, line 3, at end insert—
“(5A) A contracting authority may not award a contract under subsection (1) to a supplier that does not guarantee the payment of at least the Real Living Wage to all its own employees and contracted staff and those of any sub-contractors.”
See explanatory statement to Amendment 4.
Amendment 2, in clause 44, page 30, line 16, at end insert—
“(4) Any Minister of the Crown, Member of Parliament, Member of the House of Lords or senior civil servant involved in recommending a supplier for a contract under section 41 or 43 must make a public declaration to the Cabinet Office of any private financial interest in that supplier within 10 working days.”
This amendment would implement a recommendation by the National Audit Office that any contracts awarded under emergency provisions or direct awards should include transparency declarations.
Amendment 7, in clause 45, page 31, line 6, at end insert—
“(aa) permit the award of a public contract to a supplier that does not guarantee the payment of at least the Real Living Wage to all its own employees and contracted staff and those of any sub-contractors.”
See explanatory statement to Amendment 4.
Government amendments 24 to 30.
Amendment 61, in clause 58, page 40, line 38, leave out paragraph (c).
This amendment would remove provision allowing a contracting authority to have regard to commitments to prevent circumstances giving rise to the application of an exclusion ground from occurring again when considering whether a supplier should be excluded.
Amendment 62, page 40, line 41, leave out paragraph (e).
This amendment would remove provision allowing a contracting authority to have regard to evidence, explanations or factors not specified elsewhere in the clause when considering whether a supplier should be excluded.
Amendment 63, page 41, line 8, leave out subsection (3).
This amendment removes clause 58 (3), which limits the ability of a contracting authority to require whatever evidence is necessary to make their assessment about whether a supplier is reliable.
Government amendments 31 to 50.
Amendment 17, in clause 68, page 49, line 15, at end insert—
“(10A) Within a year of the passage of this Act, the Secretary of State must prepare, publish and lay before Parliament a report on the effectiveness of this section in ensuring prompt payment of small and medium-sized enterprises.
(10B) Not later than 6 months after the report has been laid before Parliament, a Minister of the Crown must make a motion in the House of Commons in relation to the report.”
This amendment would require the Government to report to Parliament on the effectiveness of this section in ensuring prompt payment of SMEs.
Amendment 68, in clause 71, page 51, line 11, at end insert—
“(6A) When a planned procurement notice is published under section 15 or a tender notice is published under section 21, the contracting authority must include a statement of the outcomes which the contract is intended to achieve.
(6B) The contracting authority must commission an independent evaluation of whether each contract delivered the outcomes mentioned in subsection (6A), unless the contract is excluded by regulations under subsection (6D).
(6C) An evaluation under subsection (6B) must—
(a) be performed by an independent body in accordance with UK Government Evaluation Standards, and include a clear recommendation on whether similar further public contracts should be begun, renewed or extended;
(b) be commissioned in time to be completed within six months of contract termination, renewal or extension;
(c) be published in full by the contracting authority immediately it is received from the independent external body.
(6D) The Secretary of State may by regulations specify types of contracts that do not require independent evaluations under subsection (6B).
(6E) Where the independent evaluation under subsection (6B) recommends that similar public contracts should not be begun, extended or renewed, any contracting authority which nonetheless intends to do so must publish its reasons not less than 30 days before the agreement is begun, extended or renewed.”
Government amendments 51 to 55.
Amendment 13, page 78, line 12, leave out clause 119.
Amendment 8, in clause 122, page 82, line 5, at end insert—
“‘Real Living Wage’ means the hourly wage rates for London and for outside London calculated annually by the Resolution Foundation and overseen by the Living Wage Commission (or their successor bodies);”.
This amendment inserts a definition of the Real Living Wage for the purposes of Amendments 4 to 7.
Government amendment 56.
Amendment 64, in schedule 6, page 106, line 7, at end insert
“or an offence under section 86, 88 or 92 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.”
This amendment is intended to ensure that the full range of criminal offences for money laundering are properly captured for the purposes of exclusion from public procurement.
Amendment 65, page 106, line 12, leave out “or 6” and insert ”, 6 or 7”.
This amendment includes the failure of commercial organisations to prevent bribery as an offence which is a mandatory exclusion ground.
Amendment 66, page 106, line 14, at end insert—
18A An offence under Schedule 3 of the Anti-Terrorism, Crime and Security Act 2001 (sanctions evasion offences).”
This amendment is intended to make criminal offences for sanctions evasion grounds for mandatory exclusion from public procurement.
Government amendment 57.
Amendment 15, page 110, line 12, at end insert—
“National security
42A A mandatory exclusion ground applies to a supplier if a decision-maker determines that the supplier or a connected person poses a threat to the national security of the United Kingdom.”
This amendment would move national security from among the discretionary exclusion grounds in Schedule 7 to the mandatory exclusion grounds in Schedule 6.
Government amendment 58.
Amendment 18, in schedule 7, page 113, line 2, at end insert—
“1A A discretionary exclusion ground applies to a supplier if a contracting authority determines that a supplier, within a year leading to the date of tender—
(a) has been found by an employment tribunal or court to have significantly breached the rights of an employee or worker engaged or formerly engaged by it with one or more aggravating features, or has admitted to doing so; and
(b) has not conformed with applicable obligations in the fields of environmental, social and labour law established by national law, collective agreements or international environmental, social and labour law provisions; and
(c) has not taken steps to rectify the situation through—
(i) paying or undertaking to pay compensation in respect of any damage caused by the breach of rights; and
(ii) clarifying the facts and circumstances in a comprehensive manner by actively collaborating with any relevant employment tribunal or court process and the parties thereto; and
(iii) taking concrete technical, organisational and personnel measures appropriate to prevent further breaches of rights of a similar kind.
1B In making a decision on whether a discretionary exclusion ground applies to a supplier under paragraph 1A, a contracting authority must—
(a) evaluate the adequacy of any action taken by the supplier in accordance with sub-paragraph (c) of that paragraph, taking into account the gravity and particular circumstances of the breach or breaches of rights, and
(b) make reasonable provision for the employer and the employee or worker concerned to make representations, which may be made by agreement by a trade association or trade union.”
This amendment would give contracting authorities the discretion to exclude suppliers who have significantly and repeatedly breached the rights of staff in the last year unless they have “self-cleansed”.
Amendment 67, page 113, line 17, at end insert—
“Financial and economic misconduct
3A A discretionary exclusion ground applies to a supplier if the decision-maker considers that there is sufficient evidence that the supplier or a connected person has engaged in conduct (whether in or outside the United Kingdom) constituting (or that would, if it occurred in the United Kingdom, constitute) any of the following offences—
(a) an offence under section 327, 328 or 329 of the Proceeds of Crime Act 2002 (money laundering offences);
(b) an offence under section 86, 88 or 92 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017;
(c) an offence under Schedule 3 to the Anti-terrorism, Crime and Security Act 2001 (sanctions evasion offences);
(d) an offence under section 2, 3, 4, 6 or 7 of the Fraud Act 2006 (fraud offences);
(e) an offence under section 993 of the Companies Act 2006 (fraudulent trading);
(f) an offence under section 1, 2, 6 or 7 of the Bribery Act 2010 (bribery offences).”
This amendment is intended to allow relevant Ministers and Contracting Authorities the power to exclude suppliers from procurement where they have evidence of financial and economic criminal activity, such as fraud, money laundering, bribery or sanctions evasion, but there has not yet been a conviction by a court.
Amendment 16, page 116, line 6, at end insert—
“Sanctions offences
14A(1) A discretionary exclusion ground applies to a supplier if the decision-maker considers that the supplier or a connected person has engaged in conduct constituting—
(a) An offence established in any regulations made under Part 1 of the Sanctions and Anti-Money Laundering Act 2018;
(b) An offence established under Part 5 of the Customs and Excise Management Act 1979.
(2) A discretionary exclusion ground applies to a supplier if the decision-maker considers that there is sufficient evidence that the supplier or a connected person has engaged in conduct outside of the United Kingdom that could result in such an offence being committed if that conduct occurred in the United Kingdom.”
This amendment would create a discretionary exclusion ground where a supplier (or connected person) has violated UK sanctions or export controls, or would have done so if they were in the UK.
Amendment 3, page 116, line 10, at end insert—
“Involvement in forced organ harvesting
14A(1) A discretionary exclusion ground applies to a supplier if a decision-maker determines that the supplier or a connected person has been, or is, involved in—
(a) forced organ harvesting,
(b) unethical activities relating to human tissue, including anything which involves the commission of an offence under sections 32 (prohibition of commercial dealings in human material for transplantation), 32A (offences under section 32 committed outside UK) or 33 (restriction on transplants involving a live donor) of the Human Tissue Act 2004, or under sections 20 (prohibition of commercial dealings in parts of a human body for transplantation) or 20A (offences under section 20 committed outside UK) of the Human Tissue (Scotland) Act 2006, or
(c) dealing in any device or equipment or services relating to conduct mentioned in paragraphs (a) or (b).
(2) “Forced organ harvesting” means killing a person without their consent so that their organs may be removed and transplanted into another person.”
This amendment is designed to give a discretionary power to exclude suppliers from being awarded a public contract who have participated in forced organ harvesting or unethical activities relating to human tissue, including where they are involved in providing a service or goods relating to such activities.
Government amendment 59.
It is a genuine honour to take the Procurement Bill through Report stage. As the House will know, this is a major piece of post-Brexit legislation that enables us, for the first time in many decades, to reform our procurement system, to the benefit of contracting authorities, suppliers and taxpayers.
I begin with new clause 15 and amendment 52. We are inserting into the Bill a new clause that allows us to meet the UK’s international obligations on record keeping. We are strengthening record keeping obligations in the Bill to more fully reflect our obligations in both the agreement on Government procurement—the GPA—and the comprehensive and progressive agreement for trans-Pacific partnership. They both require records to be kept for a minimum of three years. New clause 15 sets out the obligation on contracting authorities to
“keep such records as the authority considers sufficient to explain a material decision made for the purpose of awarding or entering into a public contract.”
A material decision is one that requires a contracting authority
“to publish or provide a notice, document or other information in relation to the decision”,
or decisions, that are required to be made under the Bill. Records must be kept for three years from award of, or entry into, a contract—or, if the contract is awarded but not entered into, from the date of the decision not to enter into it.
The primary goal of the Bill is to streamline procurement regulations and ensure the overall efficiency of the system, while avoiding overwhelming businesses and contracting authorities with a multitude of rules and regulations—a point that we will no doubt return to this afternoon. As such, and in line with international requirements, the obligations attach only to the award of, and entry into, contracts; they do not apply to the management stage of a contract.
Information on the management of major contracts will of course be put into the public domain, thanks to the Bill’s considerable transparency obligations. That includes information on key performance indicators, such as performance against them; information on amendments to contracts; and information on contract termination, which will require reporting on performance. The time limit already in the Bill on the duty to maintain records of communications with suppliers is being relocated to sit alongside the new record keeping duty. The record keeping requirement is intended to act as a minimum; contracting authorities may of course keep records for longer, and indeed may be required to do so under other legislation.
Government amendments 24 and 25 change the point at which, under clause 52(1), contracting authorities are required to publish key performance indicators. They will no longer have to do so before entering into a public contract. Instead, there will be a requirement to publish them under proposed new subsection (2A) of clause 52. Clause 53, on contract details notices, provides that the details of KPIs will be specified in regulations under clause 95. That is because it is not possible to publish the KPIs before entering into the public contract, as they arise as part of the process of entering into the contract.
Government amendments 19, 20 and 56 make a necessary technical adjustment to ensure that the City of London Corporation is caught by the Bill in respect of its public sector functions, but not its commercial functions. The Bill is intended to apply to local authorities—clause 2 makes it clear that publicly funded bodies are caught by it—but due to its evolution and structure, the corporation does not operate solely as a local authority. It has significant private sector trading activities—for example, it operates private schools and undertakes property management—that are clearly not intended to be caught by the Bill. Unlike district and county councils, being a local authority is not the corporation’s raison d’être; rather, it has some local authority functions bolted on to its wider organisational functions. Without the amendments to clause 2 and schedule 2, there would be a risk of unintended consequences; the Bill would apply to either all the corporation’s activities, including its commercial activities, or none of them, depending on whether the corporation’s balance of income was derived mainly from its trading activities or from public funds in any one year.
Government amendments 21 to 23 resolve a drafting inconsistency between clause 19, which governs the award of contracts following a competitive procedure, and clause 43, which has rules allowing a contracting authority to switch to direct award if no suitable tender was received in a competition. Under clause 19, a tender may be disregarded in a competition if it breaches a procedural requirement set by the contracting authority—for example, if it is submitted late or is over its word count. Abnormally low tenders can also be disregarded, provided the tenderer has advance notification and the chance to respond, pursuant to subsections (4) and (5).
The changes proposed to clause 43 will ensure that only a material breach of procedural requirements will render a tender unsuitable: for example, being 10 words over the set count should not result in an unsuitable tender permitting direct award. Abnormally low tenders cannot be deemed unsuitable unless the supplier has had an opportunity to demonstrate that it will be able to perform the contract for the price offered, as is required under clause 19.
Moving on to amendment 59, paragraph 2(3) of schedule 10 inserts new section 14(5A) into the Defence Reform Act 2014. The DRA, and the Single Source Contract Regulations 2014 made under it, make provision for the pricing of defence contracts to procure goods, works and services that are not let competitively and meet the necessary criteria, including a financial threshold. New section 14(5A) is being introduced to address uncertainty about when an agreement for new goods, works and services should be regarded as an amendment to an existing contract within the scope of the DRA regime, and when it should be regarded as a new contract in its own right. The proposed new subsection currently addresses the situation by identifying two specific categories of existing contract not subject to the DRA regime that, when amended on a non-competed basis to add further goods, works or services, would become subject to that regime.
A third such category of contract not currently addressed by proposed section 14(5) has subsequently come to light. That category covers a single source contract that was below the financial threshold set by the SSCRs that is subsequently amended to add new goods, works and services that take it above that threshold. Amendment 59 will ensure that such contracts are brought within the regulation-making power. A hypothetical example would be a contract that was let competitively for £6 million a few years ago and was not subject to the regulations, where proposed section 14(5) and section 14(3)(b) —which excludes contracts let through competitions—did not apply, and a single source amendment was subsequently placed a few years later for £10 million of new work. That kind of amendment is referred to in section 14(5), and under the proposed new regulations, it would be treated as a new contract for the purposes of the regulations. Under the current wording of schedule 10, the agreement covering the new work would fall under the regulations.
Amendments 38, 32, 36, 37, 39 to 51, 57 and 58 significantly strengthen the exclusions and debarment provisions for exclusion on national security grounds. As the Bill stands, placing a supplier on the debarment list on national security grounds will make it excludable from all contracts within the scope of the Bill. That means that the supplier will be identified as posing a threat to the national security of the UK, but contracting authorities will have discretion as to whether they exclude the supplier in each particular procurement. Having engaged with colleagues in the House and reflected on their concerns, I can confirm that the Government are content to further strengthen those provisions. The new amendments will enable a Minister of the Crown to take a stronger approach in response to a specific risk profile of a particular supplier and make targeted decisions about whether the debarment should be mandatory for particular types of contracts, depending on the nature of the risk.