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Procurement Bill [Lords] - Sitting 8

09 February 2023

Proposing MP
Brentwood and Ongar
Type
Public Bill Committee

At a Glance

Issue Summary

The amendment would modify the criteria for public undertakings or private utilities operating in Wales, treating those that operate wholly or mainly in relation to Wales as devolved Welsh authorities. The statement addresses amendments to the Procurement Bill [Lords] regarding the definition of devolved Welsh and Northern Irish authorities and procurement arrangements. The statement discusses amendments to clause 107 and introduces amendment 115, which alters how the Procurement Bill will be implemented in Wales. The statement addresses Clause 112 of the Procurement Bill, which ensures local authorities can comply with procurement obligations without being hindered by section 17 of the Local Government Act 1988. The statement discusses amendments to the Single Source Contract Regulations 2014 under the Procurement Bill to ensure value for money for taxpayers and a fair price for industry. The statement discusses Clause 117 of the Procurement Bill, which grants an authority power to amend regulations affecting private utilities to reduce regulatory burdens. The statement discusses the Procurement Bill's provisions for private utilities and international trade agreements. The statement addresses concerns about the reliance on secondary legislation in the Procurement Bill, particularly regarding Clause 118. The statement discusses clauses in the Procurement Bill regarding its commencement and jurisdiction. Alex Burghart is discussing amendments to the Procurement Bill [Lords], specifically addressing the commencement of devolved Welsh aspects and removing a technical amendment related to financial privileges.

Action Requested

The amendment proposes legislative changes to clause 107 and related clauses to adjust how public undertakings or private utilities are categorized based on their operations in Wales. The government amendments aim to refine the criteria further, ensuring clarity and consistency with existing regulations and practices.

Key Facts

  • Amendment 66 would modify the language from “only” to “wholly or mainly”.
  • Government amendment 67 is discussed alongside the proposed change.
  • Clauses 108, 109, 110, and 111 are also subject to stand part motions.
  • The Bill extends the definition of a 'devolved Welsh authority' to include certain private entities and utilities operating wholly or mainly in Wales.
  • Welsh Ministers may regulate contracting authorities whose activities do not relate to reserved matters.
  • Clause 109 restricts the powers of a Minister of the Crown to regulate devolved Welsh and Northern Ireland procurement arrangements without consent from relevant ministers.
  • Amendments ensure Scottish Ministers can amend their procurement legislation for joint procurements with other UK authorities.
  • Amendment 115 will amend clause 123, establishing a requirement for UK Ministers to obtain Welsh Minister's consent before commencing the regime in Wales.
  • Clause 107 is amended to ensure that reserved bodies are protected from commencement uncertainty if Welsh consent is not given.
  • Reserved bodies include entities like the Driver and Vehicle Licensing Agency which operate in Wales but fall under a reserved authority.
  • Clause 112 ensures local authorities can comply with procurement policies without being restricted by section 17 of the Local Government Act 1988.
  • The clause allows for regulations to be made so that below-threshold procurements may be reserved exclusively for UK suppliers or UK SMEs and voluntary, community, and social enterprises in specific regions.
  • Regulations under Clause 112 will permit flexibility similar to that available to central Government Departments.
  • Clause 113 amends the Defence Reform Act 2014.
  • Amendments aim to increase flexibility, clarify value for money assurance, and simplify processes.
  • The Public Contracts Regulations 2015, Concession Contracts Regulations 2016, Utilities Contracts Regulations 2016, and Defence and Security Public Contracts Regulations 2011 will be repealed when the Bill comes into effect.
  • Clause 117 provides a power for an appropriate authority to make regulations to reduce the regulation of private utilities under the Bill.
  • Private utility regulators like Ofgem and Ofwat have promoted competition in utility markets while protecting consumer interests.
  • The clause requires consultation prior to making any amendments, and Parliament will scrutinise such regulations under the affirmative procedure.
  • Clause 118 sets out procedures for making regulations under the Procurement Bill.
  • Private utilities will be further deregulated due to their regulated markets and competitive nature.
  • Suppliers from countries with UK trade agreements have access to procurements by private utilities in sectors such as gas, electricity, water, transport services, ports, and airports.
  • Clause 118 outlines powers and restrictions related to regulations under the Procurement Bill.
  • Secondary legislation will see public consultation before formulation.
  • An affirmative procedure will be used for much of the secondary legislation.
  • Clause 119 defines terms common in the Bill, such as "appropriate authority" and "small and medium-sized enterprises (SMEs)."
  • The definition of SME can be amended by an appropriate authority through legislation.
  • Clause 123 sets out when the Bill’s provisions will have effect as law.
  • The Bill's provisions apply to all procurement by contracting authorities in England, Wales and Northern Ireland.
  • Six months’ notice of the new regime coming into force from when the Bill is passed has been committed.
  • Amendment would regulate procurement by referencing provisions conferring functions in relation to procurement.
  • Clause 123 is ordered to stand part of the Bill after amendment.
  • Amendment made to remove subsection (2) from clause 124, page 81, line 18.
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