UK Parliament / Open data

Procurement Bill [HL]

Oh well. I shall just work on the text I have; I mean, what is one meant to do? There is “Water” and “Transport”. “Ports and airports” and “Extraction of oil and gas” are also mentioned, but it is the first few that matter. It is striking that the rollout of broadband, the internet and such things do not count as a utility; I should have thought that they were characteristically examples of a utility. My noble friend will no doubt be able to give me a compelling rationale why they are not included.

I come back to the point I made a moment ago about the regulator. I read out the subheadings because noble Lords can see that the activities we are discussing are nearly all regulated, funded by the commitment of private capital with an assumption that private capital will be reasonably efficient in procurement, even if simply for the benefit of shareholders. This does not preclude defalcation, fraud, bribery or giving contracts to your best mate but, as I explained at Second Reading, the Bill does not deal with those issues. If they arose, be it in a public authority or a private company, they would be dealt with through the criminal law because they are all criminal offences. One would not pursue them for a trivial breach of a procedural requirement under the Bill; one would go after them for fraud, taking bribes or all these other criminal things, which are nothing to do with the Bill.

All that makes me think that including private utilities is not entirely appropriate. If it were felt that procurement undertaken by private utilities needed some form of statutory control it would be better in a separate Bill that actually focused on the principles, rather than the procedure, allowing private companies

to pursue those procedures appropriate to achieving their shareholders’ ends, just as we allow Tesco to do—with the exception of selling cars next door to fruit. I cannot contemplate for a moment why the European Union should take exception to that, but apparently it did. Essentially, we leave Tesco to decide what procurement processes to follow because it is a private company risking private capital. That is the essential ground on which I make my point.

Finally, I turn to transport, because I have more direct experience of it as a utility than I do the others. There are some distinctions to be drawn. I take as an example Transport for London; as noble Lords may know, I served on the board. Transport for London perhaps should be subject to procurement regulations of this character, but Transport for London is in part categorised as a local government body. It is covered by some local government legislation, as well as by its own Act. That might be the rationale for including a body such as Transport for London, or some of its equivalent bodies that have been created around the country.

5.45 pm

However, when it comes to saying that a bus company which has been franchised—my eyes do not work quickly enough but I am now looking at Clause 5(4), the subsection which captures the activities—a private bus company, shall we say, should be subject to the full panoply of this regulation and lumped in with a body such as Transport for London, which is partly an arm of local government, that goes too far. I would have thought that a distinction along those lines should commend itself to the Government and that. largely speaking, with the exception of the sort of body, such as Transport for London, which I referred to, at least as relates to transport, the private companies could be removed from the ambit of the Bill altogether.

I look forward to hearing what my noble friend has to say and whether he can explain the rationale, along with the question of the internet and broadband. Unless I have mistaken it, that is not in Schedule 4 and if it is somewhere else in the Bill, I have not found it.

About this proceeding contribution

Reference

823 cc204-5GC 

Session

2022-23

Chamber / Committee

House of Lords Grand Committee
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