Covid-19: Contracts and Public Inquiry

Alan Brown Excerpts

Wednesday 7th July 2021 Commons Chamber

[Ian Blackford]

I am afraid to say that the lack of dignity in the Conservative Government is what is at stake here. The Scottish Government’s processes on procurement were open and transparent—that is the difference with what has taken place in this place.

Let me give a couple of other examples. A company run by a former business associate of the Tory peer Baroness Mone was awarded a £122 million contract seven weeks after the company was formed—my goodness, who has ever heard of such a thing? Another company, owned by a Tory donor, that supplied beauty products to high street stores was awarded a £65 million contract to produce face masks. Public First, which was awarded a £560,000 contract by the Chancellor of the Duchy of Lancaster to conduct polling on the Union, was run by a former employee of the Chancellor of the Duchy of Lancaster. Colleagues, right hon. and hon. Members, there is a thread that runs right through this. Incidentally, we have yet to see any of the research into support for Scottish independence: perhaps the Government did not like what they found.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

My right hon. Friend is making a valid point. Is he aware of the recent report from openDemocracy that another person who helped to run Public First was Rachel Wolf, who was also a non-executive director at the Department for Work and Pensions at the time? Not only are Tory cronies getting contracts, but they have placemen who are supposed to challenge the Government but are actually helping to get contracts.

[Ian Blackford]

My hon. Friend is quite correct. I am delighted that we have an opportunity today to shine a light on all this, but it demonstrates that we need to get on with the public inquiry. The public deserve to know what has been happening with this Government as we have come through the pandemic.

We have heard excuses from the Prime Minister and the former Health Secretary that some of these contracts were fast-tracked because there was no time to be wasted in such urgent circumstances. Well, some basic due diligence might have been useful. Perhaps unsurprisingly given the lack of expertise of some of those securing the covid procurement contracts, there have been numerous issues with the orders.

As reported by the BBC, 50 million face masks bought in April 2020 could not be used by the NHS because they did not meet its specifications. The use of 10 million surgical gowns for frontline NHS staff was suspended because of how the items were packaged. Millions of medical gowns were never used, having been bought for the NHS at the end of the first lockdown for £122 million. A million high-grade masks used in the NHS did not meet the right safety standards and have been withdrawn. What a waste of taxpayers’ money. What a shambles. At the same time, 3 million of our constituents have been left with no financial support. Those are the warped priorities of the Government.

--- Later in debate ---

[Joanna Cherry (Edinburgh South West) (SNP)]

rose—

[Alan Brown]

rose—

[Jo Churchill]

I will give way in a minute. The right hon. Member for Ross, Skye and Lochaber is well aware of the public contract regulations, which existed before the pandemic and which allow the Government to procure at speed in times of emergency. There was no need to suspend or relax the procurement rules in order to use those regulations. I gently say that these were the same systems as in Scotland and Wales. We had an unprecedented global crisis and, quite rightly, people had to use existing regulation that allows them to flex in order to deliver for their populations.

The use of the emergency contracting procedures has reduced since the early days of the pandemic. That contingency procedure is, however, still available to Departments provided the key tests are met. The Government have always understood the scale of the challenges that we have faced as a nation, and that is why, from the start of the pandemic, we were clear with public authorities that they would need to act extremely quickly to meet the challenge of covid-19. We have also been clear about the continued need to use good commercial judgment and to publish the details of awards made, in line with Government transparency guidance.

[Alan Brown]

I thank the Minister for giving way. The emergency tender procedure that she highlights is the one that was previously used to award a ferry contract to a company with no ferries, so we know how bad the governance is from this Government. On governance, openDemocracy recently confirmed that 16 non-executive directors appointed to various Departments are Vote Leave compadres, Tory chums and Tory donors. They are the ones who are supposed to hold the Government to account. Can she explain the selection process for these non-executive director roles?

[Jo Churchill]

No, I will not. Those non-executive directors are selected through a selection procedure because they hold skills—commercial skills, legal skills and so on—from the outside world. If the hon. Gentleman is telling me that the way someone votes in an election makes them unable to scrutinise, that makes a mockery of the way that we set up Select Committees and so on. It is important that people are enabled to come in with their skills from the outside world to scrutinise.

That being said, we are committed to looking for opportunities to improve the way that we work. The first independent Boardman review of procurement processes, looking at a small number of contracts in the Government Communication Service, has reported to Government. Twenty-four of the 28 recommendations have already been implemented, and the remainder will be met by the end of the calendar year. A second review by Nigel Boardman into pandemic planning and procurement across Government identified further recommended improvements to the procurement process. Work is under way to progress them, and an update will be given to the Public Accounts Committee this month—a double layer of making sure that we are doing the right thing. The Cabinet Office Green Paper “Transforming public procurement” also sets out proposals to update the rules on procuring in times of extreme urgency or crisis to include lessons learned from the pandemic.

Procurement has been and is being extensively reviewed, including by the independent National Audit Office report published last year on Government procurement during the covid-19 pandemic, but the Government know that there is so much more to learn from the experience of the pandemic. That is why the Prime Minister confirmed a public inquiry into covid-19, which will begin its work next spring. I hear the calls for that inquiry to be brought forward, but I believe it would be irresponsible. A premature inquiry risks distracting Ministers, officials and Departments from the ongoing pandemic response, slowing down action and diverting the very people we need to be focused on each delicate stage of our ongoing response. I would also gently say that with six out of 10 of the highest-rate areas in Scotland and the pandemic still very visible in the north-west, north-east, Yorkshire and Humber, it is incumbent on us to deal with the pandemic as our first priority.

This was a global pandemic. It impacted all of us: individuals, friends, businesses and our own families across the UK and across the world. We have to recover as one team, team UK, or else we are weakened. It is right that we learn these lessons together. We will continue to work with the devolved Administrations as we develop the inquiry. I know that they, too, will welcome the scrutiny and the diligence that an inquiry will bring not only to England, but also to Scotland.