Robin Millar – 2023 Speech on the Procurement Bill

The speech made by Robin Millar, the Conservative MP for Aberconwy, in the House of Commons on 9 January 2023.

It is a privilege to follow the new hon. Member for City of Chester (Samantha Dixon). I congratulate her on her maiden speech and particularly on managing to introduce a reference to Lego. It is one of the great joys of speaking in this place to listen out for the new and innovative in a speech, and I commend her for that. I look forward to hearing more contributions from her in due course.

I rise to speak in favour of the Bill, which I believe will do much to improve value for money for public authorities, access for small and medium-sized businesses, and transparency for taxpayers. It will also deliver some of the ambition that my hon. Friend the Member for Totnes (Anthony Mangnall) alluded to in his speech. However, it is in considering a global Britain—an outward-looking, forward-leaning trading nation—that I will make some suggestions on how the Bill can be used to strengthen the Union of the United Kingdom. Like the right hon. Member for Ashton-under-Lyne (Angela Rayner), I must confess to feeling a frisson of excitement at the mention of procurement, having nearly two decades ago seen the introduction of the national procurement strategy for local government and the genuine impact it had on local government.

There is much to commend in the Bill. Having spent some time in local government as a councillor, I welcome the enhanced freedoms it offers to authorities, which will now have greater flexibility to devise tendering processes to fit their specific requirements. That will save time and money and allow councils to select contracts that best fit the needs of those they serve. Arguably, no one has a better picture of what is needed for a job than those who are responsible for delivery. No amount of checklists imposed by Brussels or Westminster can replace this local knowledge and hands-on experience.

As a former businessman, I welcome the Bill’s provisions on easy access to contracts for SMEs and guarantees of prompt payment. The creation of a single repository for business identification will prevent the duplication of paperwork, and the creation of a centralised procurement hub listing all tenders, frameworks and dynamic markets will improve access for small and medium-sized businesses across the public sector. Sadly, too often a labyrinth of paperwork and an anarchic landscape of procurement systems freeze SMEs out of public contracts and under-mine competition, adding costs to businesses and the taxpayer. This Bill makes strides towards eliminating those hurdles.

If I can commend the Bill as a former councillor and businessman, it is as an advocate for our Union that I see potential for strengthening the Bill. On the one hand, the Bill has positives in this regard. It contains a mechanism to ensure that procurement bodies throughout the UK have access to one another’s frameworks and dynamic markets—a move that may encourage co-operation. Likewise, the decision of the Welsh and Northern Ireland devolved authorities to opt in will ensure that businesses have improved access to contracts in the majority of the UK.

However, the devolution of the national policy statement power allows local authorities the autonomy, for example, to give regard to, but not necessarily conform to, the guidance of those centralising devolved authorities. The same applies to the devolution of the power to make regulations determining the form and location of the publication of procurement notices and other documents by authorities and suppliers. That raises the worrying prospect of further barriers to businesses attempting to access different parts of the UK, and of separate procurement hubs. Why? Because the devolved Administrations have on occasion pursued a strategy of non-co-operation. After all, on 1 June 2022 the Welsh Labour Economy Minister, Vaughan Gething, wrote to every council leader in Wales to state explicitly that his Administration will not assist local authorities that implement projects funded by the UK Government’s shared prosperity fund if they do not align with Welsh Government priorities.

Finally, as the majority of devolved Administration spending is funded by the UK taxpayer, the absence of a central, accessible and standardised repository of procurement information raises important questions about transparency. Is it not fair that UK taxpayers should have easy access to details about how their money is spent, wherever it is spent in the UK? Or must the spending of UK funds sent behind a devolved curtain remain unaccountable to their provider, the UK taxpayer?

That brings me to the subject of accountability. The Bill delivers powers to investigate authorities that may have breached procurement rules, and recent events suggest that this should be a particular cause for concern. A combination of journalistic investigation and leaks has revealed that the Scottish Government’s recent award of the contract for two island ferries to a political supporter was not in accordance with the terms of the advertised tender. We have also discovered that the state ferry procurement authority and civil servants advised against the award to Ferguson Marine, which had no history of such projects and would not provide industry-standard refund guarantees. Indeed, leaked documents revealed that civil servants had advised that the award may be unlawful, but this became apparent only when it was realised that the redactions in the documents could be reversed.

Subsequent investigation has revealed that Ferguson Marine was unique in receiving an in-person meeting and a 424-page briefing pack, much of which appears to have been copied and pasted into its official bid. The outcome is that the ships are now nearly four times over budget and over five years late, which is a significant cost to the UK taxpayer. It is particularly costly to the islands that the ferries were meant to serve, which have at times been cut off from the British mainland and from essential supplies. To top it all off, Audit Scotland recently revealed that a further £130 million used to bail out Ferguson Marine has gone missing due to sloppy accounting.

I cite this case study not to score points but to ask a very simple question: who watches the watchers? Unless the UK enjoys standardised reporting rules and a transparent, easy-access hub for public procurement information, its taxpayers have no guarantee that their money is being spent with integrity. This Bill offers high levels of flexibility, enough to account for the divergent needs of local and devolved authorities across our country. What it may benefit from, however, is a mechanism to ensure that the right to accountable public spending is shared across the United Kingdom.

I conclude with three requests to the Minister. The first is that a reserved right to commission an independent investigation into procurement by devolved Administrations, where there is good reason to believe that rules may have been broken, be included in the Bill. The second is that provision be made to ensure the comparability of data and UK-wide standards for recording and publishing tenders and procurement information. My final request is that he considers extending the Bill to Scotland to help secure value for money for taxpayers and to secure the benefits of competition across the UK for UK residents in Scotland. We have a duty to secure their interests and should expect at least a demonstration of how these standards will be met by the Scottish Government through an alternative route, if they persist in seeking to be excluded from the Bill.