Local Government: Ethical Procurement Debate

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Department: HM Treasury

Local Government: Ethical Procurement

Martyn Day Excerpts
Tuesday 15th March 2016

(8 years, 2 months ago)

Westminster Hall
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Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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I, too, should start with a declaration of interest, having recently visited Palestine, courtesy of Fatah UK.

I thank the hon. Member for Birmingham, Northfield (Richard Burden) for securing this timely debate. Thankfully, the latest procurement policy note not does not directly apply to Scotland, where procurement is devolved and the Scottish Government lead on related procurement regulations. Of course, both Scottish regulations and the regulations for the rest of the UK must adhere to the same set of underlying EU directives, and it is those that set out the limits on the situations in which authorities can exclude bidders from a procurement process.

The Scottish Government strongly discourage trade and investment with illegal settlements. Such decisions must be taken in compliance with procurement legislation. For a company to be excluded from competition, it has to have been convicted of a specific offence or committed an act of grave misconduct in the course of its business. One view, supported by the Scottish Government, is that where a company exploits assets in illegal Israeli settlements in occupied Palestine, it may be guilty of grave professional misconduct, and it may therefore be permissible to exclude it from a procurement process.

It must never be forgotten when engaging in such considerations that local government is always answerable to the interests and wishes of its local communities and electorates. I know from my own mailbag that many local residents in Linlithgow and East Falkirk feel very strongly about this issue. There is a general presumption that decisions taken in their interest should be ethical where possible, and there is particular outrage that the UK Government appear to favour promoting goods from the illegal Israeli settlements. I genuinely fear that if the UK Government’s proposals effectively force local councils and other public bodies to invest unethically in areas such as the Israeli occupation or arms companies, where local opinion would have directed them otherwise, we will be at risk of serious democratic failings.

Rather than attacking local democracy, the Government should take steps to support it. An approach akin to that being taken in Scotland would be good, but at the very least a full clarification from Ministers regarding the recent guidance is essential.