UK Parliament / Open data

Procurement Bill [HL]

Proceeding contribution from Lord True (Conservative) in the House of Lords on Wednesday, 13 July 2022. It occurred during Debate on bills and Committee proceeding on Procurement Bill [HL].

This document was produced at one stage of the process of working towards this procurement legislation to illustrate what the national policy statement might look like. I will come on to the question of consultation because that was a second theme and ask in the debate. It was clear in the speech by the noble Baroness, Lady Parminter, about how Parliament will be involved in the process and the hope that Parliament will be able to influence the process in an effective way. I have heard that call and will reflect on it.

The third strand takes us back to where we were before. Noble Lords are seeking to put in primary legislation constraints on what a procurement strategy might and should contain. Having been taken to task by the noble Lord, Lord Scriven, in the debate on the previous group about being diffident about amendments that say “must have regard to”, all the amendments in this group, bar those that are applying the thing, are “must” amendments. They are a tighter straitjacket on the potential procurement statement than what we had before in terms of what is proposed to go into primary legislation, so I am instinctively less likely to be attracted to them.

For the reasons that we have debated at length—that there is a difference between insight and knowledge, that some people want to tie a lot down in primary legislation and that the Government are arguing for flexibility—we sadly cannot accept any of the amendments in this group. Amendment 60, tabled by my noble friend Lord Lansley—the may/must amendment—would require the Government to publish a national policy procurement strategy. We have shown, in earnest, what we might move towards, and we have drafted Clause 12.

However, any procurement policy should be aligned with wider government objectives and, as such, the publication of an NPPS is a decision based on the strategic policy priorities relevant to the Government at that time. Our feeling is that we should not seek to bind a future Government—that may be of a very different complexion to ours—to publish a specific document. Therefore, we think that changing the drafting of Clause 12 from “may” to “must” and mandating the statement in this manner would not be appropriate. However, I have listened carefully to what has been said, and it goes into the box of satisfying Parliament that it will have an opportunity to have influence because we are a parliamentary democracy, and Parliament should have influence. That is a fundamental faith that I hope is shared by all of us who have the honour of being Members of Parliament.

The noble Lord, Lord Davies, raised a point about statutory versus non-statutory. I believe that I said—but somebody behind me said that perhaps I did not—that it was not necessarily statutory but the paving, if you like, was included in statute. The current NPPS is non-statutory. If I gave the opposite impression, that was not my intention, but obviously we are talking about the future here. It is there to show what a statutory NPPS might look like in the eyes of the Government. I hope that I have clarified that.

Similarly, Amendment 546, tabled by the noble Baronesses, Lady Worthington, Lady Young and Lady Parminter, and my noble friend Lady Verma,

provides for Clause 12 to be brought into force immediately upon the Act being passed. Again, this amendment seeks to ensure that, in one sense, the things that people want to happen will happen quickly. I hear strongly what my noble friend says about small businesses and the need to reach out and help innovators and the creatives and, on the other hand, to get an NPPS before the public and into operation.

As my noble friend Lady Verma and others will know, it is currently envisaged that there should be a period of six months after the Act is passed before it comes into force, which will allow for consideration and discussion, and for training and learning about implementation. In that light, there are certain difficulties in the proposal to bring the NPPS in on the very first day. I can assure her that the contracting authorities will be required to have regard to the NPPS and embed it in their own organisations. If it is mandated to be on the day the Act is passed, the process may not work as we currently envisage it, but I have heard what has been said in the Committee about the concerns people have on the process and will take that away to colleagues. At the passing of the Act—the point mandated in this amendment—the new regime would be yet to be fully implemented, and we are allowing this period for familiarisation.

The other strand in the debate, as I have alluded to, goes back to our previous group on setting specified strategic priorities in primary legislation. The range of topics we have heard has been very wide—the Government profoundly agree on many of them—and some were very detailed. I know of the passion of the noble Baroness, Lady Boycott, on food matters and am frankly horrified to hear that Coca-Cola is paying for its product. You would have to pay me to have a tin of Coca-Cola, I can tell you. However, the set of details in the proposal could potentially be quite onerous, and the noble Baroness’s objectives are secured or sought in other legislation and activities. I will come back to this later in my remarks.

The range of amendments in this group shows that there are many different priorities. It is precisely for that reason that we believe the contracting authorities should have a range of flexibility and that some of these matters are potentially better detailed in the NPPS than in primary legislation. But I understand why, through these amendments, noble Lords are trying to express their concern on the matters that they wish to have put in. For example, Amendments 61, 65, 69, 70, 70A and 79, in the names of a number of noble Lords, refer to the climate change proposals and net zero. As I have said, these are in the current non-statutory document. While I recognise the importance of this, it is absolutely correct in our view that public procurement needs to be focused on achieving value for money.

The noble Lord, Lord Hunt, read out parts of the current draft and said that there is a dichotomy and a balance here. Yes, we admit that there is a dichotomy and a balance to be reached but we maintain that it would not be appropriate to include wider policy objectives in primary legislation. Each procurement is different and, as I have said before, what is appropriate for a large one is not necessarily appropriate for a small one. It is always important that policy priorities

are included in individual procurements only where they are relevant to the subject of the contract, in our submission. That is to avoid making procurements unduly complex and difficult, particularly for smaller or new entrants and innovators, to comply with.

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Amendment 76 requests the same inclusion in primary legislation of objectives for the Wales procurement policy statement. My previous comments relating to ensuring that priorities are flexible applies to this amendment as well. I will come back to the specific amendment from the noble Lord, Lord Wigley, on devolved competence later. We will continue to work closely with Wales on this Bill. As I said at an earlier stage and earlier in this Committee, the Bill makes provision for the Welsh Government to set their own strategic priorities—we have heard that they are doing so—and Welsh contracting authorities will be able to take into account individual priorities within the parameters of the Wales procurement policy statement, which also might change over time. We therefore do not believe that we should set those specific strategic priorities in this primary legislation.

Amendment 66 is in relation to food. I am sorry for the disobliging comments about the directors of Coca-Cola, wherever they are. The Government have introduced policies for below-threshold procurement which allow contracting authorities to identify local suppliers who can deliver. This will be of use for schools and perhaps individual hospitals for purchasing food below a certain threshold. In addition, Defra plans to consult separately on the food-buying standard which will encourage engagement with small businesses during public sector food procurement. I hope that will go some way towards meeting the noble Baroness’s objectives.

As I said at the outset, many amendments relate to the process for publishing and scrutinising a national procurement policy statement. I must say with all humility that I understand the legitimate questions that your Lordships are asking in this area, and I will very carefully read the comments made in Hansard. Amendments 62, 63, 64, 68 and 74 request a change to the process by generally requiring publication of a draft statement and providing longer timescales. I assure noble Lords that the Government are committed to ensuring that any NPPS is published with the approval of Parliament. The Procurement Bill provides the process to safeguard this. The noble Baroness, Lady Parminter, criticised this. It is correct that a Minister of the Crown has accountability for the establishment of procurement policy priorities. This will be done in a process of consultation with all stakeholders. We will aim to share the draft with relevant stakeholders prior to publication. We already do this with most procurement policy notes and obviously we will go through the usual processes of consultation. The usual legal rules on consultation will apply. Ultimately, if Parliament does not agree with the statement as published, it has available to it the mechanism set out in Clause 12 to stop it, although it has been put to me that it is insufficient.

Type
Proceeding contribution
Reference
823 cc492-4GC 
Session
2022-23
Chamber / Committee
House of Lords Grand Committee
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