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Public Procurement Processes
25 January 2023
Lead MP
Mick Whitley
Responding Minister
Alex Burghart
Tags
EconomyTaxationEmploymentNorthern Ireland
Word Count: 11042
Other Contributors: 9
At a Glance
Mick Whitley raised concerns about public procurement processes in Westminster Hall. A government minister responded.
Key Requests to Government:
I urge the government to include social value calculation as a mandatory component of all bids and to ensure that bad employers are prevented from winning contracts. Furthermore, I ask them to address cronyism by closing VIP lanes in contract awarding processes.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
I am concerned about the lack of social value calculation in public procurement processes, which prevents local economies and communities from benefiting. The current system has led to a situation where £166 million worth of PPE was not used due to contracts being awarded without proper scrutiny. Additionally, 1 in 6 procurement contracts over five years have been given to companies linked to tax havens, undermining public trust. I also worry about the impact on local businesses such as Cammell Laird shipyard in Birkenhead, where work for Mersey ferries was outsourced to Romania despite being a deprived area.
Alistair Carmichael
Lib Dem
Orkney and Shetland
The hon. Member questioned the Government's caution regarding companies from Xinjiang, China, producing CCTV equipment for councils in the UK, given concerns about human rights issues.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
The MP acknowledged the importance of public procurement, highlighting concerns about fraud or corruption in areas where nearly £300 billion is spent annually. She emphasized the need for procurement to support British businesses and local authorities through insourcing practices. Florence Eshalomi also expressed concern over climate change not being prioritized sufficiently in the Procurement Bill and called for improvements regarding excluded, excludable and debarment systems within the bill. Highlighted that local councils have seen funding cuts over 13 years, leading to reduced procurement teams and difficult decisions about social worker funding versus procurement officers.
Ynys Mon
The hon. Member expressed concern about the Government's attacks on trade unions and their right to strike, which could undermine the approach of involving a broader range of people in public procurement processes. He inquired about the Welsh Government's agreement to UK government legislation, expressing surprise at their consent. Asked about potential conflicts between Wales' Social Partnership and Public Procurement (Wales) Bill and the UK Government's current legislation focused on process rather than socially responsible outcomes. Asked for an update on the Welsh Government's recommendation to grant consent to the Procurement Bill and any progress on concurrent powers and commencement powers for Welsh Ministers.
Jim Shannon
DUP
Strangford
Mr. Jim Shannon highlighted the importance of the Procurement Bill in encouraging British contracts with British companies to secure jobs for constituents, noting that Northern Ireland's legal framework allows it more input into procurement processes post-Brexit. He cited a case where Wrightbus secured international deals, emphasizing the need for legislative change to ensure UK contracts consider local economic impacts and prioritise ethical sourcing. Shannon also stressed the importance of considering human rights violations in procurement decisions and the necessity for public authorities to focus on integrity and value for money when procuring materials.
Jon Trickett
Lab
Normanton and Hemsworth
He expressed concern over the lack of value for money during the procurement process, especially in relation to pandemic spending. He highlighted seven reasons why there should be caution towards outsourcing, including under-resourced public sector procurement services, absence of public comparators, no evidence that outsourcing is cheaper than insourcing, and negative impacts on wages and local economies. He wondered if the hon. Lady agreed with commentators who argued that EU procurement rules precluded social objectives, suggesting this was an argument for Brexit. Asked if the Government's procurement policies are doing anything to level up the country socially, economically or otherwise. Said 'Says you.' in response to a previous statement.
Kirsty Blackman
SNP
Aberdeen North
The hon. Member raised concerns about the environmental impact and social issues related to procuring materials from further away, suggesting that it might have negative effects on local communities. Concerned about the Procurement Bill's impact on Scotland, especially regarding devolution and trade deals. Criticised UK Ministers for implementing procurement practices in Scotland through secondary legislation instead of allowing Scottish Parliament control. Emphasised need to remain closely aligned with EU principles like transparency and non-discrimination. Raised concerns over Hikvision cameras used by 61% of UK public authorities, calling on the Government to address human rights abuses. Noted lack of climate change considerations in the Procurement Bill.
Mary Kelly
Lab
Northampton North
I support the need for social value to be included in procurement processes and highlight how vital it is for local communities. I agree with the lead MP's concerns about PPE contracts awarded without proper scrutiny.
Peter Dowd
Lab
Bootle
My hon. Friend highlighted deficiencies in the Procurement Bill, noting that there is no exact definition of procurement principles and lack of specific requirements for climate objectives or social value elements. My hon. Friend emphasised the need for concrete assessments and metrics to measure the success of proposed measures in the Procurement Bill, highlighting a lack of specific indicators. One definition of contract monitoring is the process of tracking the performance and status of contracts, to ensure that the obligations within them are being fulfilled as intended; it is not just about the purchase of a contract, but the monitoring. In light of massive cuts over 13 years, local government's ability to monitor some contracts has been diminished. He questioned whether the Bill was taking control back to Westminster instead of returning it to local areas that need it more. Asked if the Bill enables a more imaginative approach to procurement compared to when we were in the European Union and what changes are promised.
Tim Farron
Lib Dem
Westmorland and Lonsdale
The hon. Member argued that social value must include saving lives through radiotherapy and suggested a centralised procurement system for linear accelerators to address shortages in cancer treatment equipment.
Government Response
Alex Burghart
Government Response
It is a pleasure to serve under your chairwomanship for the first time, Ms McVey. I congratulate the hon. Member for Birkenhead on securing the debate. The Procurement Bill is a landmark piece of legislation that enables us to take advantage of freedoms not available when we were in the EU. Public authorities and suppliers responded strongly to the public consultation, showing their support for change. With £300 billion of public procurement annually, there is an opportunity to reduce paperwork, streamline processes, improve opportunities for SMEs, and introduce new ways of viewing procurement. The Bill shifts from MEAT (Most Economically Advantageous Tender) to MAT (Most Advantageous Tender), giving authorities a freer hand in decision-making based on broader criteria such as job creation and environmental impact. Shipbuilding is covered by WTO commitments, but the Bill facilitates easier access for local businesses through procurement decisions that are not solely based on money. Since 2016-2019, 98% of contracts went to British firms, and the Bill aims to make it easier for SMEs to access public authority contracts. The Bill ensures authorities have the choice to insource or outsource, providing a legal framework that helps them make informed decisions. Decisions on PPE procurement were made by competent civil servants and upheld in court. Northern Ireland must be included in these opportunities, though Scotland has chosen not to participate. Amendments have been tabled to strengthen the debarment regime and consider subcontractors and 30-day payments within the Bill.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.