Interserve

Debate between Oliver Dowden and Bob Blackman

Monday 18th March 2019 Commons Chamber

[Oliver Dowden]

I take this opportunity to reassure the hon. Lady and the House that I am most certainly not in the dark about the position of our strategic suppliers. Almost every week I meet the senior officials she referred to in order to understand the situations of our strategic suppliers. Moreover, I regularly meet the Crown Representatives who, as she knows, are responsible for managing the strategic suppliers on behalf of the Government.

[Bob Blackman (Harrow East) (Con)]

I thank my hon. Friend for the answers that he is giving. Clearly, there are big advantages both on costs and quality of service provided by outsourcing, but does he not agree that some of these conglomerates that provide a whole spread of different outsourced services are disadvantaging the small and medium-sized enterprises that could otherwise gain these contracts directly? Clearly, with this restructuring, they could miss out. When restructuring happens, someone loses out. Should the Government not now be considering a wider spread of smaller contracts so that SMEs can properly compete against the conglomerates?

[Oliver Dowden]

As ever, my hon. Friend raises a very important point. He is absolutely right that, post-Carillion, we must ensure that we strengthen the supply chain. One of the ways in which we do that is through increased diversity, particularly by enabling small and medium-sized enterprises to bid and win Government contracts. That is why we have reduced complex pre-qualification questionnaires, why we have set a very demanding target of 33% of all contracts going to SMEs and why, in November, I announced proposals to ensure that strategic suppliers who did not pay their subcontractors on time would face exclusion from winning Government contracts.

Capita

Debate between Oliver Dowden and Bob Blackman

Tuesday 24th April 2018 Commons Chamber

[Oliver Dowden]

I shall resist the suggestions of Front-Bench colleagues; I do not think I will ever convince the hon. Gentleman to cross the Floor, despite his warm words.

We reviewed PFIs and introduced the new private finance 2 contracts, which removed many of the excesses we saw under the last Government. The hon. Gentleman asks about the rewarding of new contracts. Since the statement in January, as I said, no contracts have been awarded to Capita by central Government. Two have been awarded by the wider public sector—by the BBC and Northern Ireland authorities.

[Bob Blackman (Harrow East) (Con)]

My hon. Friend will recall that Capita developed from the public sector in the first place. Does he agree that the use of outsourcing not only controls costs and gives gains to the public, but provides certainty over the standards of service provided to the public? If an outsourced company fails to deliver to those standards, the contract can be recalled and given to an alternative provider.

Capita

Debate between Oliver Dowden and Bob Blackman

Thursday 1st February 2018 Commons Chamber

[Oliver Dowden]

The hon. Gentleman makes a very important point. He is precisely right. There is nothing wrong, per se, with engaging with the private sector for the delivery of services, but we must ensure that there is rigour in the contracts. Many contracts in the past have not been properly negotiated and have not delivered value for the public sector, and they will continue to burden us for many decades to come. However, that is not an invalidation of the model; it is about problems with specific contractual negotiations.

[Bob Blackman (Harrow East) (Con)]

It is clear that Capita is unique because it grew out of outsourcing from the public sector, but as it grew the structures outstripped its proper corporate responsibility. It is also clear that we need to argue the case for the benefits to the public sector of outsourcing. Will the Minister therefore set out the benefits of outsourcing and give one or two examples of where it has been a success and delivered better public service?

[Oliver Dowden]

I am very happy to do so. This is precisely why private sector companies use outsourcing. Every company engages in outsourcing because it recognises that there are some areas where there is greater expertise than can be delivered by that company. It is exactly the same for the public sector. We focus on what actually works—what delivers for the public sector and what delivers the best price and the best value. Over 4,500 projects have been delivered since 2010; over a quarter of a trillion pounds has been invested in infrastructure; and over 70% of our 175 long-term priority projects and programmes identified are now complete, under construction, or part of a programme being delivered. This is delivering the public services that people want.