My Lords, I rise to speak to a number of amendments in this group on behalf of my noble friend Lord Wallace and myself. I must first apologise that there was no presence on the Liberal Democrats Benches at the beginning. I am afraid my colleagues have been in the wars. My noble friend Lord Wallace is at the dentist, my noble friend Lord Fox is suffering from Covid and my noble friend Lord Scriven was delayed for four hours on a train—so it has all been a tale of disaster.
I shall speak first to my noble friend Lord Wallace’s Amendments 450 and 451, which are intended to probe the nature of the exemptions from publishing or disclosing information. It is welcome that centralised investigations by a Minister of the Crown into whether suppliers should be excluded are explicitly allowed under the Bill and that reports from these investigations must be published. However, under the current Bill the grounds for not publishing such reports include national security and the release of sensitive commercial information. Sensitive commercial information is defined under Clause 85 as any information which
“would be likely to prejudice the commercial interests of any person if it were published”.
Given that a debarment investigation, by its very nature, is likely to prejudice the commercial interests of a person in that it will have a significant reputational impact on a company or individual that will affect their commercial relations, this test is too broad and is likely to lead to many debarment investigation reports not being published or to decisions to do so being contested by the company.
Clause 85(2)(b) is likely to lead to more redaction of information than is necessary or in the public interest by putting the onus on the contracting authority to prove there is no chance it will cause any harm to the commercial interests of any person—a standard which is very vague and difficult to enforce. We therefore argue that information in public contracts regarding how public funds are spent should be public by design and redacted only by exception when doing so is in the overriding public interest. Doing so reduces the risk for contracting authorities and will avoid overreaction.
My noble friend’s Amendment 448 has the same intent as Amendment 449A. The noble Lord, Lord Berkeley, spoke to that amendment extremely cogently and I have signed it. As he said, the Freedom of Information Act 2000 applies to information about a contract held by a public authority but not normally to information held by the contractor. Public access to information about public sector contracts varies from contract to contract, depending on their precise terms and on the willingness of the parties to adopt measures permitting greater access.
Much of the information the public may seek will relate to problems not anticipated at the contract stage or to information which the authority did not consider it needed to monitor in relation to performance under the contract. The Bill provides for only limited disclosure to the public about the performance of a contract. An annual assessment of performance against KPIs will be required for contracts valued at over £2 million, but an authority will not be required to publish more than three KPIs and may not be required to publish any at
all if it considers that they would not allow the appropriate assessment of the contract’s performance. The actual information to be published about compliance with KPIs will be left to regulations.
In any event, a 12-month wait for an annual publication is unlikely to satisfy the needs of those concerned about an existing problem, and this amendment, as the noble Lord described, provides that all information relating to a contract with a public authority held by the contractor or a subcontractor will be subject to the FoIA or to the Environmental Information Regulations 2004. As he described, this follows the approach of many countries’ FoI laws: for example, Australia, Germany, Ireland, Italy, New Zealand—I could go on.
Amendment 449 would in effect make this position under the UK’s Freedom of Information Act and the EIR. It would ensure that any information held by a contractor in connection with a public authority contract would be deemed to be held on behalf of the authority and thus be subject to the FoIA and EIR. The public’s right to such information would no longer depend on the precise terms of the contract. We strongly support that amendment.
We also support Amendments 455 and 459A in the name of the noble Baroness, Lady Hayman. I have also tabled Amendment 456, which is complementary to Amendment 459A. As the noble Baroness described, Amendment 459A is designed explicitly to frame a duty around transparency in UK procurement beyond publishing the notices themselves as required in the Bill. As she described, this is drawn from the OECD’s recommendation on public procurement and seems to have some purchase with the Cabinet Office. The amendment would help establish how and where the notices should be published. It also says why or what the objective behind publishing the notices is. It is important that the completeness and comprehensiveness of the notices are not changed without accountability.
Amendment 456 goes a bit further and adds specific requirements about the platform’s implementation and would ensure that the information on the digital platform was regularly reviewed for accuracy, timeliness and completeness. A crucial aspect is the need for the contract award notices to be published in a timely fashion. Current legislation requires contract award notices to be published within 30 days, yet research by the Spend Network shows that the mean time to publish contract award notices is over 40 days. Many ministerial departments spending billions of pounds take more than three months to publish notices. The Cabinet Office takes an average of 2.7 months. Vital information is missing from nearly three-quarters of contract award notices, and this is wrong because it denies the public, businesses of all sizes and the media the ability to understand what financial commitments the Government are making and with whom—as with that egregious fast-track PPE contract situation.
We need to ensure that this long-standing problem does not get worse and that the appropriate authority ensures that public sector organisations publish complete, accurate and accessible data under an open licence and that the 30-day threshold set out in Clause 51 is respected in practice. That is what Amendment—