Procurement Bill [ Lords ] (Seventh sitting) Debate

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Department: Cabinet Office
The UK needs to be an active player on the global stage. The only way to do that is by proving we can meet our international obligations, and actions speak louder than words. I am proud of this country’s response to the war in Ukraine. I hope the same commitment to our international community will be continued throughout the procurement process.
Kirsty Blackman Portrait Kirsty Blackman (Aberdeen North) (SNP)
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I agree with the hon. Member for Islwyn that the Minister is giving us a run for our money today. I feel like I was speaking particularly slowly on Tuesday, as I was not feeling great and my brain was taking a while to catch up, but hopefully I can be a bit speedier today and get through with a higher level of coherence. Apologies if I said anything then that did not make much sense.

I will focus on clause 90, the Minister’s amendment 59 and our amendment 102. The Bill seeks to confer the power exercised concurrently by UK and Scottish Ministers to implement the Government procurement chapters of the agreements with Australia and New Zealand by secondary legislation. We agree with that and have no query about the fact that the negotiation of international agreements is a reserved matter but, as the Minister noted, the implementation in devolved areas, such as Government procurement, is a devolved matter. Procurement is devolved to the Scottish Government and Scottish Parliament, and we make our own decisions about how best to implement that.

The correct constitutional and devolution-respecting solution would be to amend the Bill to grant implementation powers solely to Scottish Ministers in this regard. I agree that the Minister has put forward an amendment that changes what clause 90 says, but the amendment also says:

“Regulations under subsection (1) may not be made unless a Minister of the Crown considers, or the Scottish Ministers consider, that the regulations are necessary in order to ratify or comply with an international agreement to which the United Kingdom is a signatory.”

The “or” is what I have a problem with, on the basis that it still allows the UK Government to act in devolved areas. I recognise the restrictions put in place by the rest of the amendment in terms of the breadth of the action that can be taken, and I recognise that the UK Government Minister has worked with colleagues in the Scottish Parliament to ensure that we are getting a bit closer together; indeed, it is closer than in the Bill that originally came to us from the Lords. However, I still feel that amendment 102 is necessary to protect the devolution settlement, because we should not have UK Government Ministers acting in devolved competencies. They should not be able to take this decision wherever they feel it is necessary to do so.

We are not for a second suggesting that we would not act in concordance with our international agreements, because we would. I am sure the Minister would not suggest otherwise, as the Scottish Government do stick to their international agreements—regardless of whichever Government signed up to them, we do our very best to fulfil them. However, this is about the implementation of procurement rules and ensuring that that works in the best possible way for Scotland.

The Scottish Parliament is writing legislation on procurement for Scotland, which, as has been noted a number of times in this Committee, is distinct and separate in Scotland. We already have our own procurement system, which works on a different basis to the procurement system down here. We have already talked about the real living wage running through our procurement rules, where it is not in the rest of the UK. We already have a distinct situation. The UK Government are not elected to take this action in Scotland. The Scottish Parliament is elected to take this action in Scotland and to implement it in the way that will work best for our procurement systems and for the people of Scotland, who elected the Scottish Parliament to do that.

Amendment 102 says:

“A Minister of the Crown acting under subsection (1) must acquire the consent of Scottish Ministers.”

I do not think that is too much to ask on the basis that this is a devolved area. Actually, if the UK Government are making new procurement rules that relate to Scotland’s implementation of its international agreements, ensuring the consent of Scottish Ministers means those rules will work within our procurement frameworks, systems and situations in order that those agreements can be properly implemented.

The Scottish Government want and intend to implement these international agreements properly. However, in order for that to happen as written, the UK Government will need a significant understanding of the Scottish procurement system, which is distinct from that of the rest of the UK. Our system will continue to be distinct in order to be able to write appropriate legislation that will apply in Scotland and work within our devolved legislation. It seems like a burden for UK Government Ministers to have to learn that, when actually, they could just say to Scotland, “How would you like this to be written?” and the Scottish Government could say, “This is how we would write it.” We could then have a discussion about whether or not that implements our international agreements. I am certain that it would, because the Scottish Government are good at acting in compliance.

Lastly, respect for the devolution settlement is an important tenet of our democracy. Devolution to Scotland is what the Scottish people voted for. We have the Scottish Parliament, which is significantly more popular than the Westminster Parliament in terms of the actions taken on behalf of the Scottish people. It is also significantly better regarded in terms of accessibility. I do not mean accessibility simply in terms of the building; I mean accessibility in terms of people being able to come and speak to Ministers and to have Ministers or civil servants listen and take action that improves their lives. It is much closer to people, and people feel that. Moving this process even further away seems like a real negative for people in Scotland.

David Duguid Portrait David Duguid (Banff and Buchan) (Con)
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I am listening to the hon. Member very carefully. Given her assertion that only people who are elected to the Scottish Parliament should make these decisions, should not she and I, and indeed the Chairman of the Committee, get our coats and head home early today?

Kirsty Blackman Portrait Kirsty Blackman
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As I mentioned in previous speeches, we are taking decisions here for the entirety of the UK. Like it or not, I have been elected in the same way as the hon. Member has, as a UK member of Parliament. We therefore have the right in this place to take decisions on procurement in England and procurement in Wales. We do not have the right to take decisions on procurement across the UK, given the agreement that the implementation of procurement and how it works in Scotland is devolved.

In fact, this Bill does not confer any rights on Members of Parliament to make decisions for the people of Scotland. It confers the power on Ministers to make that decision, which is very different from conferring it on Parliament. I have spoken before about the Executive power creep of recent years, which continues to give more power to the Executive and less to parliamentarians and MPs in this place. It is therefore important that the Scottish Parliament gets to take these decisions. I do not think the UK Government should be allowed to override the devolution settlement whenever they feel it convenient to do so, as we saw recently when they used section 35 to stop legislation put through the Scottish Parliament on a cross-party basis.

Again, the Bill is a further overreach of the UK Government’s powers. We are not suggesting for a second that the UK does not have the right to sign up to international agreements. It absolutely does, but we have the right in Scotland, as part of the devolution settlement, to implement those rules in devolved areas. In that regard, I would like to push amendment 102 to a vote. I am not convinced that I will get terribly much support, but I will do my best anyway. Hopefully the Minister will move Government amendment 59, which is a step forward, as I have said, and I hope he will also agree to the inclusion of our amendment.

Alex Burghart Portrait Alex Burghart
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To address the most pressing issue in this group, I must confess to having a Celtic heritage. Indeed, my grandfather was from south Wales, and his grandfather was born in the workhouse, not terribly far from the constituency of the hon. Member for Islwyn, so he has found me out.

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Kirsty Blackman Portrait Kirsty Blackman
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The Minister is suggesting that clause 90 will be used only in extremis. Do I read that correctly, or is that not his suggestion?

Alex Burghart Portrait Alex Burghart
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Certainly, if there was an international agreement and the Scottish Government wished to legislate or regulate to implement it, that would be our preference. As I say, it is important that we put safeguards in the Bill. On the hon. Lady’s point about burdens being placed on officials by having to keep up with procurement regulations in Scotland, I can assure her that my officials welcome the burden, and that their understanding of such regulations is so strong that they would not notice the extra weight at all. I hope that she will not move her amendment.

Question put and agreed to.

Clause 88 accordingly ordered to stand part of the Bill.

Schedule 9 agreed to.

Clause 89 ordered to stand part of the Bill.

Clause 90

Treaty state suppliers: non-discrimination in Scotland

Amendment made: 59, in clause 90, page 60, line 32, at end insert—

“(1A) Regulations under subsection (1) may only include provision that is equivalent to provision in—

(a) subsection (1), (2), (5) or (6) of section 88 (treaty state suppliers),

(b) section 89 (treaty state suppliers: non-discrimination), or

(c) Schedule 9 (specified international agreements).

(1B) Regulations under subsection (1) may not be made unless a Minister of the Crown considers, or the Scottish Ministers consider, that the regulations are necessary in order to ratify or comply with an international agreement to which the United Kingdom is a signatory.

(1C) In subsection (1B), the reference to being a signatory to an international agreement includes a reference to having—

(a) exchanged instruments, where the exchange constitutes the agreement;

(b) acceded to the agreement.”—(Alex Burghart.)

This amendment would mean that a Minister of the Crown or Scottish Ministers, in making regulations under clause 90, may only make provision equivalent to provision in Part 7 and if the Minister considers, or Scottish Ministers, consider it necessary in order to ratify or comply with an international agreement.

Amendment proposed: 102, in clause 90, page 60, line 32, at end insert—

“(1A) A Minister of the Crown acting under subsection (1) must acquire the consent of Scottish Ministers.”—(Kirsty Blackman.)

Question put, That the amendment be made.