Parliamentary Buildings (Restoration and Renewal) Bill

Lord Hope of Craighead Excerpts

2nd reading (Hansard): House of Lords
Monday 8th July 2019 Lords Chamber

[Lord Hope of Craighead (CB)]

My Lords, how good it is at last to have before us a really chunky Bill. I am tempted to say that it is something that one might get one’s teeth into, but that, so far as I am concerned, would give the wrong impression because this is not a Bill that needs to be torn apart but a Bill which deserves to be supported, because it is a necessary Bill. The decision that we should in principle proceed with this project was taken by both Houses almost 18 months ago, as has been pointed out. What we need to do now is to set up the machinery to put it into motion. Of course, like all machinery, it needs to be fit for purpose if it is to do its job. The question is whether it meets that standard. That, I suggest, is what we need to consider today.

The key provisions are to be found in Clauses 2 to 7. The use of a sponsor body, to represent the interests of Parliament and assume overall responsibility for the building works, and of a delivery authority to formulate proposals and provide the operational delivery of the works, is a tried and tested structure, as the noble Lord, Lord Newby, pointed out, ideally suited for major projects of this kind. It is clear that nothing can be done, other than in relation to preparatory works, until the delivery authority’s proposals have been approved by Parliament. Overall control will remain with Parliament, and it will be for the two new bodies to determine the strategy and formulate the proposals for Parliament’s approval. That is as it should be, so we need to look at the details that give effect to this plan.

I pay tribute to the work of the Joint Committee which subjected the draft Bill to pre-legislative scrutiny, which was so well described by the noble Lord, Lord Blunkett, as well as to the work of the Bill team which has put the Bill together. As to the detail, as the noble Baroness said, two of the four amendments which were passed by the other place will need to be looked at again, and there are two other matters that are worth looking at again too.

Before saying a word or two about one of those matters, there is one other point that is of particular interest to me as a lawyer, and that is dispute resolution. The questions I ask myself, as I read through the Bill, are whether there is a risk of a dispute between the various parties that are referred to and, if so, how any such dispute is to be resolved. That disputes will arise is inevitable. It is not that those involved are likely to be just awkward. There will be genuine differences of opinion that will need to be sorted out. We are not, of course, concerned here with disputes between the delivery authority and the contractors engaged to carry out the works. There are well-established mechanisms in the standard forms of contract which are designed to deal with those matters. What we are concerned with is the possibility of disputes between the various bodies referred to in this Bill.

So far as I can find, the word “agreement” is used in six places in the Bill. One use I can leave aside fairly quickly. It is used in Schedule 1 and deals with something that can happen only if there is an agreement. It is its use in the main body of the Bill that requires a little more thought.

Clause 1(1) deal with something that affects the relationship between the House commissions and the two new bodies. It provides that works can only be designated for the purposes of the definition of “the Parliamentary building works” by the House commissions if they have the agreement of the sponsor body and the delivery authority. This is a case where something can only happen unless and until there is agreement, first, between the House commissions themselves and then, if they are agreed, between them and the new bodies. However, the Bill says nothing about what is to happen if they cannot all agree.

Clause 4 addresses the question of what is to happen if the two new bodies cannot agree on a relevant matter when they formulate the programme delivery agreement or when they consider whether it should be varied. The way that any such disagreements are to be resolved is set out in Clauses 4(4) to (6)—the matters are to be referred to the commissions to settle the difference—but the Bill says nothing about how that is to be done or what is to happen if the commissions cannot agree with each other.

I think that I can see the reason why the Bill does not seek to fill those gaps. The only way in which they could be filled would be to refer the dispute to a third party to act in the same way as, for example, an arbitrator, but that would be to take the decision-taking function on these vital matters out of our hands or, to be more accurate, out of the hands of the commissions. Therefore, I think that on balance the Bill is right not to attempt to tell the commissions what they must do to achieve agreement, but it needs to be recognised that they must find a way of working together to ensure that a consensus is achieved and that the project is not stalled or delayed by disagreements between them or the two new bodies. I have to declare that at the moment I am a member of this House’s commission, but I regret that I will be leaving that position when I cease to be Convenor, so it will then be for others to look after that vital matter. That is the first point that I would like to make.

The other point is one that I make briefly in relation to one of the two amendments to which the noble Baroness referred—the one in Clause 2(4)(h), which deals with spreading the economic benefit of the works across the United Kingdom. I agree with the noble Baroness that there are problems here because of the effect of the Public Contracts Regulations 2015. Those who seek to enter into contracts for work of this kind have to be treated equally and without discrimination. That is the basic rule. Competition is not to be artificially limited by designing procurement in such a way as to,

“unduly favour or disadvantage certain economic operators”.

However, I hope that a way can be found to address the broad intention behind the provision that was passed in the other place by ensuring that companies up and down the whole of the United Kingdom, across all four nations, are made fully aware of the opportunities that will be available and how to bid for them. The process must be open to all without discrimination. That is not discrimination; it is just saying that spreading the message as widely as possible about what is on offer ought to be encouraged and provided for. Therefore, I look forward very much to the amendment that I have no doubt will be made to that provision to give effect to the broad idea behind the Motion passed in the other place.

With those comments, I very much support the Bill and join the noble Lord, Lord Newby, in wishing it a swift passage through this House.