Senedd Cymru |
Welsh Parliament
Y Pwyllgor
Iechyd a Gofal Cymdeithasol |
Health and Social Care Committee
Bil Caffael y Gwasanaeth Iechyd (Cymru) |
Health
Service Procurement (Wales) Bill
Ymateb gan
Socialist Health Association Cymru | Evidence from Socialist Health
Association Cymru
General principles of the Bill
What are your views on the general principles of the Health
Service Procurement (Wales) Bill?
Socialist Health Association – Cymru is very worried about
this Bill.
The UK Parliament is introducing procurement legislation following
Brexit. The preceding EU legislation favoured a pro-free
market framework though there were exemptions for major
public services such as health care. Some elements of the
Westminster legislation will allow for welcome flexibility in the
NHS procurement process and places a greater emphasis on
collaboration rather than competition.
However this has to be seen in the context of the major drive in
the English NHS towards outsourcing and privatisation. The Welsh
Bill seeks to mitigate any disadvantage that might arise in the use
of non-public services in a Welsh context. This leaves open the
possibility that Welsh NHS could end up following the English NHS
out-sourcing and privatisation agenda.
While the Westminster proposals do offer increased flexibility the
removal of the competitive tendering element does create the risk
of cosy, crony relationships developing in the procurement
process. New transparent governance arrangements are needed
to obviate this risk.
Is there a need for legislation to deliver the Welsh
Government’s stated policy intention?
No
Please outline your reasons for your answer to question 2 (we
would be grateful if you could keep your answer to around 500
words)
The Westminster proposed legislation will have jurisdiction in
England, Wales and Northern Ireland. In the absence of a Welsh
response, the law, as proposed for England, could be applied to
Wales. It is therefore better that the Welsh Government
should propose its own legislative programme in this
area.
Regulation making powers
What are your views on the ‘disapplication’
regulation-making power in section 2 of the Bill?
The Welsh Government should disapply
•
any requirements in UK Government legislation that places an onus
or expectation on Welsh health bodies to outsource or privatise
health services in Wales.
•
Any requirement that would leave staff in contracted or outsourced
Welsh health providers with less favourable terms of service than
their public service colleagues.
What are your views on the ‘creation’
regulation-making power in section 3 of the Bill?
The Welsh Government should ensure:-
• That public service provision is the preferred means of
delivery of health care services in Wales.
• Other than where needed for cross border services with the
English NHS, there would no market testing or outsourcing of Welsh
NHS services except in the most exceptional
circumstances.
• Where exceptional conditions justify such activity
provisions should be put in place to regularly review whether these
conditions still continue. Where possible “sunset”
clauses should be in place to finish with such
arrangements.
• That staff are not disadvantaged by any change in
terms of employment following tendering / outsourcing /
privatisation.
• That where services are not subject to a competitive
tendering strong, transparent governance arrangements are in place
to ensure that cosy, crony collaboration is avoided e.g. the
Minister should report to Senedd Cymru or its Health Committee on
such arrangements. Where necessary Audit Wales should also
regularly monitor such arrangements.
• Any NHS public procurement should be subject to the same
enlightened general public procurement regime being currently
proposed by the Welsh Government.
Implementation and impact of the Bill
Are there any potential barriers to the implementation of the
Bill’s provisions? If so, what are they, and are they
adequately taken into account in the Bill and the accompanying
Explanatory Memorandum and Regulatory Impact Assessment?
There remains a lot of uncertainty about what is being proposed in
England and the rest of the UK. It is therefore difficult to come
up with a full range of Welsh legislative responses.
Consequently there are limitations on the scrutiny that can be
applied to this legislation and its ultimate
implications.
Are any unintended consequences likely to arise from the
Bill?
SHA-Cymru is very concerned that this legislation will enable
outsourcing, tendering and privatisation of NHS services in Wales.
We believe that such activity is unduly expensive, divisive,
disruptive, gives poor value for money, demoralising for staff and
damaging to our public service ethos.
The Minister presented the legislation as relatively
unexciting and uninteresting. We do not agree. We strongly
believe that this primary legislation and any consequent secondary
legislation / guidance should be subject to full scrutiny, debate
and democratic approval.
What are your views on the Welsh Government’s assessment
of the financial and other impacts of the Bill as set out in Part 2
of the Explanatory Memorandum?
In view of the uncertainty about the potential scope of the
legislation it is hard to make an accurate judgement.
Any marketing / tendering / outsourcing exercise involves wasteful
transactional costs which does not seem to have been covered by the
Explanatory Memorandum.
The Explanatory Memorandum also overlooks the fact than many
smaller ( often Third Sector) enterprises are at a competitive
disadvantage in tendering against bigger commercial organisations
that have bespoke procurement departments. These smaller
enterprises are more likely to local and based in
Wales.
Development of the policy and legislative proposals
What are your views on the approach taken by the Welsh
Government to develop the policy and legislative proposals
reflected in the Bill?
Socialist Health Association – Cymru is
worried about the downbeat way that these proposals are being taken
forward. This seems to seriously downplay the risks and wider
implications that are involved with this legislation.
Any other issues
Are there any other issues that you would like to raise about
the Bill, the accompanying Explanatory Memorandum and Regulatory
Impact Assessment, or any related matters?
While we understand that the Welsh Government
has to respond to a post-Brexit environment in a constructive and
creative way, we support its view that much of this
environment is being fashioned by a Westminster Government whose
values and ethos is very much at odds with those of the Welsh
Government.