My Lords, we need the Bill because we need a national procurement structure. I hear what my noble friend says but there has been agreement across the Front Benches and from the Liberal Democrats that we need to establish a framework that will last. People may have different views on whether it diverges enough or not at all from the arrangements we have—doubtless that will be explored—but we need to have such a framework and a body.
Clause 2, which is probed, classifies three types of contracts that are public contracts. The first category covers contracts for the supply of goods, services and works, provided that they are not subject to an exemption. I was asked about how each of those exemptions was arrived at. I cannot answer on all of them here but I can certainly provide information to the noble Lord. The second category covers frameworks—that is, contracts providing for the future award of other contracts. The third is concession contracts, which we will discuss.
I turn to the concerns around what Schedule 2 is about. It sets out the types of contracts where the contracting authority does not need to apply the rules
for the contract award procedure; they are exempted from the procurement rules. The Bill needs to ensure that contracting authorities have the freedom to carry out the most appropriate procurement where the rules in the Bill might otherwise be unsuitable, for example where it is necessary to protect national security interests and the procurement is too sensitive to advertise; where the contract award procedures are governed by other legislation, as in rail services, which are currently awarded under a separate regime operated by the Department for Transport; or where it is necessary to protect the Government’s ability to make public policy interventions, such as on broadcasting content.
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The noble Baroness asked how above-threshold and below-threshold procurement will be different. The GPA threshold will still apply. Above-threshold contracts will benefit from the simpler rules in the Bill compared to the old EU-based rules, and below-threshold contracts involve some light transparency obligations but can also be reserved below threshold for United Kingdom firms. As for who ensures a proper estimation of contract values, these are contracts, and ultimately there are remedies for rule-breaking in a contract, and wilful misestimation would be a breach of contract rules. There is also a proposed procurement review unit to monitor compliance.
As for the thresholds, they are set by the GPA, which is why they are funny figures. I am not quite sure the original currency in which they were denoted, but they are translated into sterling. They will be adjusted by negative secondary legislation when they are changed by the WTO GPA.
Above all, the Bill maintains the current exemptions in domestic procurement law and, we contend, simplifies how the exemptions are framed and ensures the terminology used reflects domestic law and current practice on the ground. The exemptions are compatible with our international obligations—in particular, those in the WTO government procurement agreement. I hope that explanation has reassured noble Lords about the necessity for Clause 2 and Schedule 2, and that they will feel content that they stand part of the Bill.
I am sorry to speak at such length, but a large number of matters were raised and, if I have missed any, I apologise to colleagues in the Committee; we will pick them up in correspondence.