Public Services (Social Value) Bill

I, too, pay tribute to my hon. Friend the Member for Warwick and Leamington (Chris White) for getting his Bill this far. I characterise the remarks of the right hon. Member for Salford and Eccles (Hazel Blears) in that my business career was in the private sector but I also led one of the larger councils in the country. To be honest, when I first saw the Bill my heart sank, because I shared the prejudices that so many others have had regarding social enterprises. It was only when I started to see the Bill progress and to understand more of what was being done that the scales fell from my eyes and I became a supporter of it. It is better that a sinner repenteth than not change at all, if I may mix that analogy. Although I support the Bill, I have some concerns which I hope the Minister can deal with. I believe that the definition of ““social enterprise”” needs to be clarified. As I said in my intervention on the hon. Member for Harrow West (Mr Thomas), there are many private sector organisations that we may not believe to be social enterprises but of which we could argue that part of their business is to improve the social welfare of the United Kingdom, although we may disagree. That is why unless we specify what is a social enterprise—including types of ownership, not just outcomes—we could end up with a lawyers' charter as many companies argue that they have a social angle to their enterprise and should therefore qualify. Will the Minister clarify whether, when there is a change of ownership, the normal contract rules apply whereby a significant change of ownership means that the contract can be revisited? That should also apply to any contracts let to social enterprises. For instance, Ealing Community Transport, the provider of recycling services to my London borough, was a very good social enterprise that was acquired by May Gurney, a private organisation. Will a social enterprise that ceases to be a social enterprise have to go back through the contracting, and what is the legal position? Will the local government finance regulations on best value be amended to allow social enterprises that over-bid a private sector organisation to have that contract awarded? Currently, it is very difficult for local authorities to award contracts to a higher bidder without, in some cases, a Secretary of State's approval—as the right hon. Member for Salford and Eccles will know, as many such cases probably came across her desk. I hope that the Minister will be able to deal with those points. I support the Bill, and I congratulate my hon. Friend the Member for Warwick and Leamington (Chris White) on introducing it.