Draft Public Procurement (Amendment etc.) (EU Exit) (No. 2) Regulations 2019

Jo Platt Excerpts

Thursday 14th March 2019 General Committees

[Jo Platt (Leigh) (Lab/Co-op)]

Here we are again, for another of our weekly meetings with the Minister. This is the third procurement SI in a row; two are the result of the possibility of a no-deal Brexit, and one could have been sorted months ago but was recently added to the parliamentary logjam.

It is clear that the Government are in turmoil, but the growing crisis is now beginning to hit previously unaffected areas of government, including procurement, as these regulations prove. However, the context in which we are reviewing today’s regulations has significantly changed. Last night, we clearly and categorically voted twice to rule out no deal. The Government have a duty to respect the clear and unambiguous position of the House and prevent no-deal regulations such as these ever having to come into effect. We understand why the Government feel it necessary to introduce these measures, but we remember that it is the mishandling of Brexit that has left us scrambling to scrutinise and approve hundreds of SIs, the effects of which will reverberate for a considerable period of time.

I will start by looking at the 18-month so-called transition of 18 international agreements covering procurement. The truth is that the transition is anything but that. It unilaterally opens up our procurement market to a number of countries across the world after the exit date. It allows them to enjoy all the benefits, without any assured obligations in return. This could lead to the Government effectively throwing British industry under the bus, allowing the international industry free access to our markets, without reciprocal arrangements, while forcing British business to compete for UK contracts at home.

The Minister will recall that I raised that dilemma in the Committee scrutinising the original SI. His response to my concerns then was that he would expect co-operation. That simply does not cut it for UK businesses that rely on securing international procurement contracts. They need guarantees, not Ministers’ expectations, which these days have a remarkable habit of changing. I ask again: what assurances has the Minister received from other Governments that the arrangements are mutual? Our businesses, especially small and medium-sized enterprises, deserve to know. How many of the 18 countries to which the original agreements applied have agreed to mirror the UK’s 18-month transition period?

During the passage of the original SI, the Minister also said:

“There is a small chance of a gap between the “in principle” accession to the GPA that is already agreed and the “in law” joining of the GPA”.—[Official Report, Thirteenth Delegated Legislation Committee, 13 February 2019; c. 10.]

We now know from the Department for International Trade that the Government now anticipate a short gap. A letter from the Minister confirmed this week that the Government expect a delay, possibly until the end of April. Will the Minister confirm the reason for the change in the situation, how it is being communicated, and that the Government’s no-deal planning is now dangerously off-track?

We cannot escape the chaos in which the regulation has been presented. We are confronted with an amendment to an instrument that passed through Committee four weeks ago—an amendment to which the Minister referred in his speech on that occasion. At that point we were asked to pass the instrument knowing that the Government intended to alter it a few weeks later. It is a total mess, and it is all down to the Government shambles, although after the complete mess of the past few days I guess none of us can act surprised.

What message does this send to UK suppliers, to our businesses and to the rest of the world? There are businesses that need certainty. We are asking them to make investment decisions and fulfil public sector contracts, but the Government are rewriting the rules just 15 days before we could leave the European Union without a deal. They are eroding the UK’s reputation for stability—something we used to be renowned for. Frankly we are a laughing stock.

The Government are destroying not only the nation’s reputation but their own. The Conservative party used to be known as the party of business, but their actions speak louder than words. The past few months have shown them to be abandoning business, and the fiasco I have described is just the latest example. If the Minister were serious in his commitment and his responsibility to protect our procurement market and support UK SMEs, he would support every vote in the House that rules out the chaos of no deal or a hard Brexit, but instead of supporting our procurement market and businesses he voted last night to keep the door open to a no-deal Brexit, which would be chaotic and highly disruptive to businesses, jobs and our economy.

I might contrast the Government’s actions last night with our proposals, which would protect our procurement market. They would also unblock the passage of the Trade Bill—the issue that has led to our having to deal with today’s emergency measure. Their refusal to back the proposals not only endangers the long-term stability of our procurement market, but is blocking the path towards the Commons majority needed to back a Brexit deal in the national interest.

The proposals before the Committee are symptomatic of the total chaos across Government that is eroding the little trust that the procurement sector still has in them. There are serious questions for the Minister to answer now about the assurances he has received that UK suppliers will be adequately protected and supported. They are serious questions about our membership of the GPA, but there are also serious questions now about the competence of the Government.

The Opposition expect nothing less than concrete assurances and prompt communication with the procurement sector. The fact that the Minister is unable to provide those things today speaks volumes. Yet again, we are presented with regulations that could weaken our already broken procurement market. It is unforgiveable that that is because of the Government’s negligence. The sector simply deserves much better.