Will 'Social Value' procurement take into account ethical standards?

Brent Council's strategy for Social Value in procurement will be discussed at Cabinet tonight. The documents do not mention ethical procurement except with reference to sourcing practices:

Ethical sourcing practices: Ensuring compliance with UK, EU and international standards, promoting fair trade and fair pricing policies, tackling corruption, child labour and similar social issues.

However this does not appear again in the council's glossy publication on Social Value LINK

During the controversy over Veolia's bid for the Public Realm contract there were promises by the council to look at developing an ethical procurement policy.  Veolia was opposed because at the time it provided infrastuctural support for  illegal Israeli settlements on Palestinian land. Campaigners through the public money should not be used to support such practices by awarding the company a multi-million contract.

Recently the government has moved to ban councils and other public bodies from making procurement decisions that take into account ethical issues.

Cllr Tom Miller was among signatories of an attempt  by councillors to challenge this (see below)  and other organisations, including the Palestine Solidarity Campaign, have campaigned on the issue:

 

Letter from councillors regarding attacks on local democracy

Proposed regulations would give central government powers to veto investment decisions made by democratically elected local councils if it believes that local decisions conflict with the views of Westminster politicians.

Scores of councils have in recent years taken steps such as adopting fair trade principles or excluding fossil fuel, tobacco and arms companies from their investment portfolios, following campaigns by pension fund members and local citizens.

Many councils have passed motions stating they will not procure services from companies that avoid tax, aid and abet Israeli violations of international law or from construction companies that blacklist trade union members.

The Government now aims to undermine the right of councils to make democratic decisions reflecting local public opinion and the views of local authority pension fund members, who under current proposals would have less rights to influence pension fund investment decisions than those investing in personal pensions.

These proposals fatally undermine the government’s stated commitment to transfer power to local government and communities and represent a serious attack on local democracy.

We urge the government to reconsider

Newcastle City LP member calls for Brent to follow their lead on ethical procurement

Message from a Labour Party member in Newcastle on the Ethical Procurement Motion covered in an earlier blog

Some great news: our Ethical Procurement and Pensions Investment motion has now been passed by Newcastle City Council - passed overwhelmingly at Wednesday night's council meeting - so is now council policy to campaign against the changes being proposed by the Tories.

If you can do whatever you can via your Labour Party contacts in Brent and surrounding boroughs to push it down there and get Labour groups to adopt the motion and take it to their respective councils that would be great.

The motion as Passed by Newcastle City Council

Response to Government’s attack on a Councils’ right to follow an ethical policy in relation to procurement and Pensions Fund investments

Council notes with alarm the recent statement from the Department for Communities and Local Government (DCLG) confirming that new guidelines will be introduced early in the New Year which will curb councils’ powers to divest from or stop trading with organisations or countries they regard as unethical.

Council further notes that the new guidelines, which will amend Pensions and Procurement law, follow on from the government’s announcement made at the beginning of October 2015 that it was planning to introduce new rules to stop “politically motivated boycott and divestment campaigns” (Greg Clarke, Secretary of State for the Department of Communities and Local Government).

Council recognises that the focus of these new measures may be on procurement and investment policies and that they may have profound implications for Councils’ ethical investment policies more generally.

Newcastle City Council is proud of its’ commitment to human rights and to putting this into practice through such measures as an ethical approach to its relationship with business as outlined under  Newcastle’s Social Value Commitment.

Council believes that the proposed measures now being outlined by the DCLG will seriously undermine the Council’s ability to implement its commitment to ethical procurement and pensions investments.

Council also notes that the new guidelines represent a further, serious attack on local democracy and decision-making through a further restriction on councils’ powers. This is directly contrary to the government’s own stated commitment to the principle of localism, given a statutory basis by the Localism Act of 2011, which holds that local authorities are best able to do their job when they have genuine freedom to respond to what local people want, not what they are told to do by government.

Newcastle City Council therefore resolves to take all legal measures possible to oppose these new measures, including:

·       Writing to the Secretary of State for Communities and Local Government to express Council’s unequivocal opposition to the proposed changes as part of the consultation

·       Working with any other local authority, the NECA, the LGA or other appropriate forums as well other partner organisations (such as local trade unions and community groups) who share these concerns to raise awareness of the implications of the proposed measures and to campaign against their introduction

Newcastle City Council reaffirms its commitment to an ethical basis to its procurement and pensions investment policy.