Lord Shipley (LD)

My Lords, I am grateful for this statutory instrument, which I support and which will be hugely helpful for local taxpayers in the generation of local jobs. I note the comments of the noble Lord, Lord Kirkhope of Harrogate; I look forward to the Minister’s response to all the points made by the noble Lord. I would say just two things. First, we are talking here about procurement contracts below the threshold. Secondly, I believe that best value can include the generation of local jobs as a consequence of that procurement process; there has to be an allowance for that. I want to ask one specific question of the Minister, which I hope can be replied to now. It touches on a point made by the noble Lord, Lord Kirkhope of Harrogate: the definition of local area. I have not understood it; nor have I understood why there is reference in the Explanatory Notes to the consultation that took place in relation to combined authorities. My immediate reaction when I read this statutory instrument was that I did not understand how combined authorities fitted into this structure. It is quite difficult to see how that would work. In particular, in Article 3(5)(a), the local area is defined very clearly. It is stated that, “where there is one relevant authority”— let us say one council— “which intends to enter into a relevant contract … the area of that authority” is the whole of the area of that authority. My understanding of this is that a council cannot subdivide its area; it has to be within its whole area. However, it can also be “the area specified” as “the area of that authority, or … any of the areas of the counties or London boroughs that border that area”. I have not understood why the counties and London boroughs are pulled out in this order as being a special case when the metropolitan districts are not in the old metropolitan counties—from my perspective, in the north-east of England, West Yorkshire or South Yorkshire. If one council decides to enter a procurement process, is it forbidden to define its local area as a neighbouring authority or part of one? For the sake of choosing a random example, if Bradford Council decided that it wished to procure as a single authority, would it be able to run the process including a neighbourhood area such as Calderdale, Kirklees or Leeds? I have not understood this; nor have I understood why this issue is not addressed in the context of the Bill on English devolution that is going through, where this issue is not mentioned at all. Procurement does not appear in that Bill. It seems to me that there is a need for clarity on why the combined authorities are excluded and why the London boroughs have become a special case. All metropolitan areas should be a special case. Beyond that, I am happy for the Minister to write in reply, if this is seen as at all complicated, but we need absolute clarity here now; otherwise, when people start to implement the order, there is going to be confusion about what they are allowed to do. Otherwise, I am in favour of this order.