Asked by
To ask His Majesty's Government what plans they have to change
procurement guidance and operations under the Procurement Act
2023.
The Parliamentary Under-Secretary of State, Department for
Culture, Media and Sport () (Lab)
My Lords, the Procurement Act 2023 aims to create a simpler and
more transparent regime for public sector procurement that will
deliver better value for money and reduce costs for businesses
and the public sector. I commend the noble Baroness on the
Benches opposite for the commitment to small businesses, in
particular, in the Act that she personally championed. The new
regime will now go live on 24 February next year—a short delay of
four months from the previous go-live date—in order to allow time
for a new national procurement policy statement to be produced
that clearly sets out this Government's priorities for public
procurement and economic growth.
(Con)
I thank the noble Baroness for her courtesy. I remind the House
that, in June, Prime Minister Starmer said that his number one
mission was economic growth, so it is ironic that in addition to
the Employment Rights Bill, the Government are planning to damage
economic growth by delaying the Procurement Act 2023. Why are
they adapting the rules on procurement to help their union
paymasters and to encourage costly equality and green add-ons? My
concern is the resulting red tape, which is against the direction
that the Prime Minister set—yesterday he said that he wants to
get rid of red tape —and which I believe will harm efficiency and
the path to growth.
(Lab)
I absolutely and wholeheartedly refute the noble Baroness's
suggestion. I would also note that, last week, I was criticised
for continuing with measures announced by the previous Government
and this week I am being criticised for their delay. I hope that
noble Lords from across the House agree that we should look at
such matters on a case-by-case basis to ensure that this country
gets back on the stable footing it needs and deserves.
of Cumnock (Lab Co-op)
My Lords, will the Minister give a complete assurance that this
Government will not introduce a VIP lane which gives preference
to Conservatives and their colleagues? Will she also give an
assurance that the Government will appoint a Covid corruption
commissioner as soon as possible?
(Lab)
This Government are absolutely committed to using every means
possible to recoup the public money that was lost in
pandemic-related fraud and contracts that have not delivered. In
July, the Chancellor announced that the Government would appoint
a Covid counterfraud commissioner, who will be appointed by open
competition for a fixed term. I am pleased to say that
applications closed on 30 September and the Chancellor will
announce the commissioner in the coming weeks. I hope that noble
Lords will welcome this measure to address some of the shocking
instances of pandemic-related fraud and awards of contracts that
happened in the past.
(LD)
My Lords, it was a pleasure to work cross-party on the
Procurement Act, but my party objected to the NHS and the
Ministry of Defence being granted an exception from having to
follow the Act. Avid readers of the Health Service Journal will
see that about once per week the NHS is being taken court to by
its suppliers for its new procurement rules. Will the Government
now review the recent NHS procurement rules in the Health and
Care Act 2022 to see if they are up to the standard that the rest
of the public sector is required to follow?
(Lab)
In passing the Health and Care Act 2022, Parliament recognised
that healthcare services delivered to NHS patients and service
users, such as 999 emergency ambulance services and
cancer-screening services, had particular issues and challenges
which necessitated special procurement measures. Consequently, as
the noble Baroness made clear, the Procurement Act does not
include special provisions for those healthcare services.
(CB)
My Lords, during the proceedings on the Procurement Act, the
noble Baroness will recall that the House was united in not
wishing to see goods made in Xinjiang by slave labour,
particularly Uighur Muslims, being brought by public policy into
our own supply chains. Can the Minister tell us what this
Government are doing to ensure we maintain a prohibition on goods
that have been made by Uighur slave labour?
(Lab)
Abhorrent practices such as these have absolutely no place in
public supply chains. The Procurement Act strengthens the rules
around excluding suppliers due to serious misconduct anywhere in
their operations, including the supply chain.
(Con)
My Lords, what effect will this have on the defence procurement
budget, which is already under considerable pressure?
(Lab)
I do not have any detail specifically on the defence procurement
budget. This is more about the processes. The Procurement Act
includes specific rules for defence and security procurement,
including flexibility for contracts to be upgraded.
(Lab)
My Lords, it seems to me that it would be good for the Opposition
to visit Germany, where there is a great relationship between
trade unions and employers and the productivity rate is much
higher, and compare it with the failed policy of the last
Government.
(Lab)
I can only agree with my noble friend.
Lord (LD)
My Lords, does the Minister recall that, when the Procurement Act
was first presented—it started in the Lords—it was one of the
most badly drafted Bills I have ever seen, and that the
Government themselves produced 350 amendments between Second
Reading and Committee? Do the Government intend to look again at
the rules covering outsourcing, particularly to companies which
have in the past made excessive profits from government
contracts?
(Lab)
I will look into that matter and write to the noble Lord on that
point.
of Pickering (Con)
My Lords, in their manifesto, the Government committed
themselves
“through public sector targets to source locally-produced
food”
to help farmers. We on this side would applaud that, but how does
the Minister square that with the terms of the Procurement Act,
which prevents farmers and others from bidding to be sources of
food in schools, prisons and hospitals?
(Lab)
I am not aware of any particular measures that would prevent them
from doing that, but I will look into that matter and revert to
the noble Baroness.
(CB)
My Lords, I declare my interests in the register. Defence
procurement has previously had a policy of global competition by
default, so what plans do the Government have to look more
carefully at what can be sourced from the UK and support our
domestic industries in this area?
(Lab)
The Procurement Act has provisions around defence to enable a
contracting authority to exclude suppliers from procurement if
they present a threat to national security. This can identify
suppliers that must be excluded from certain contracts, as well
as suppliers that contracting authorities should consider
excluding from the procurement. I hope that at least partly
addresses the noble Lord's point.
(LD)
My Lords, can the Minister max out, as it were, on the provisions
to help small businesses achieve procurement? As well as doing
that, can she look at the Subsidy Control Act and its effect on
early-stage procurement and pre-procurement? Can she look at the
chilling effect of contracts requiring the sharing and licensing
of innovative companies' development of intellectual property
with competitors in order to comply with the Subsidy Control
Act?
(Lab)
I am happy to look into the point the noble Baroness raises. A
new duty under the Procurement Act will require contracting
authorities to have regard to small businesses, including
ensuring 30-day payment terms on a broader range of contracts. We
are keen to encourage more suppliers, particularly SMEs, to bid,
which increases competition and should in turn support
growth.
(LD)
On my noble friend's point, I am not sure the Minister quite
grasped the key issue, which is that if small businesses are
required to make public their intellectual property and
innovation—so that it then becomes available for much larger
firms to take it over and use it without any payment—they are
totally discouraged from putting forward their names for
contracts to government.
(Lab)
I understood the point that was raised, but I did not have the
answer. I apologise that I did not have the exact answer. I will
go back and look into this, and I will make sure that I write to
both noble Baronesses.
