Randox Covid Contracts

Alexander Stafford Excerpts

Wednesday 17th November 2021 Commons Chamber

[Gillian Keegan]

The VIP lane process was part of ensuring that we were aware of companies’ capabilities. At that point, they then went through a procurement process with highly trained, professional procurement people, whom I have spoken to and who would be quite insulted by the right hon. Lady’s thinking that they had not followed all the procedures.

This does not mean that we do not believe that there are lessons to learn; of course there are. No one can face such an unprecedented challenge and conclude that everything worked perfectly, and that is not what we are saying. We remain committed to procurement reform and are looking at coming forward with some. Last December, we published our transforming public procurement Green Paper, which provided commercial terms across Government. We have clarified the roles and responsibilities of everyone involved in decision making, and are determined to do all that we can to ensure that we have a simple and less bureaucratic system that is underpinned by the enduring principles of fair and open competition.

[Alexander Stafford (Rother Valley) (Con)]

Does the Minister agree that this is a situation that happened across the United Kingdom? I am under the impression that the SNP Government in Scotland gave £500 million-worth of contracts without competition, so what happened in England and the UK was no different to what happened in other parts of the country; this is how everyone operates in a global pandemic.

[Gillian Keegan]

The most important thing in a global pandemic is to secure supply of something that is not widely available across the world—to get security of supply—and that is what we did. We all know that there was a time when we were worried about running out of PPE, about not having enough testing capacity and about not having the large scale of supplies needed to meet the demand. Of course, any responsible Government would do that.

As I was saying, we are looking at procurement systems and are determined to do all that we can to ensure that we have a system that is simple and less bureaucratic, but which is still underpinned by the enduring principles of fair and open competition. We are also implementing the recommendations of the first and second Boardman reviews into improving procurement.

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[Brendan O’Hara]

I absolutely take on board what the hon. Gentleman says, and I am sure the Government have heard it as well. There are many, many questions to be answered, including by Lord Bethell himself.

It is essential that this is done, because a stench of corruption is engulfing this Government, who now stand accused of making certain well-placed individuals fabulously wealthy during this pandemic, not because of their particular skill or acumen in business but primarily because of their political connections to the Conservative party. We should give thanks to Owen Paterson, because it was his behaviour and the bizarre attempt by the Prime Minister, the Tory Chief Whip and the Chancellor of the Duchy of Lancaster—albeit at the expense of the reputation of this House and all of us who sit in it—that has finally blown the lid off this scandal once and for all.

It was almost exactly a year ago that the National Audit Office revealed that companies with the right political connections who wanted to supply the UK with personal protective equipment had been directed to a “high priority” channel, purely on the recommendation of a Government Minister, an MP, a Member of the House of Lords or a senior Government official.

[Alexander Stafford]

Out of 78 contracts awarded to Scottish firms for PPE, 29 were new contracts for £100 million-worth of PPE going to companies that did not have any experience before. Those 29 companies in Scotland with no background in PPE got contracts worth £100 million in Scotland, so what is the difference between that and what happened in the UK? At least Randox had the experience in these things. I am a bit confused—sorry.

[Brendan O’Hara]

The difference, quite simply, is that we never fast-tracked our pals, we never operated a get- rich-quick scheme for our pals, and we did not stuff unelected second Chambers full of people who bankrolled our party.

[Brendan O’Hara]

The hon. Gentleman makes an important point, but what has to be remembered is that nobody is above scrutiny, and if there is nothing to hide they should have nothing to fear. This is all about scrutiny and shining a light where I fear a lot of Conservative Members do not want a light to be shone.

[Alexander Stafford]

rose—

[Brendan O’Hara]

No, I will move on.

Once in that “high priority” channel, these companies were 10 times more likely to be successful than companies that did not have links to politicians and senior Government officials, and who were therefore, by definition, “low priority”. In and of itself, the existence of this “high priority” channel is quite remarkable, but the fact that, according to the National Audit Office, the companies referred through this route were considered by the cross-Government PPE team to be somehow more credible and therefore to be treated with more urgency makes this particularly sinister. It turns out that there were no written rules as to how the “high priority” channel should operate, meaning that those companies who had given political support and had access to hundreds of millions of pounds of public funds were not subject to the usual rules of procurement. They could bypass the essential paperwork that would usually be a prerequisite for safeguarding against misuse of public funds and did not even have to go through the anti-corruption checks. It seems, as I said, that it was little more than a get-rich-quick scheme for the Conservatives and their pals.

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[Brendan O’Hara]

Unfortunately not; I thank the hon. Gentleman for highlighting it. I think it is something in the air in which we live, and it is a very important point.

What we are seeing now is crony capitalism at its worst. It stinks, and the closer we get to it, the more it reeks.

I have in the past called for a full and independent investigation into this scandal, and I repeat that call again this afternoon. I believe that the actions of the disgraced former Member for North Shropshire strengthen that case further. As the right hon. Member for Ashton-under-Lyne (Angela Rayner) said, very serious questions need to be answered. If they are not answered, the reputation of this Government, who seem to be stumbling from one crisis and scandal to another, will be further damaged, but so too will the reputation of this place, the people in it and politics generally. I understand that the Government are desperate for this to go away, but it will not go away until these incredibly serious issues are addressed. I suspect that the Government know that, and they understand that despite this place being full of large carpets, there probably is not one large enough for them to sweep this under. It will not go away and it must be addressed.

We know that between November 2016 and July 2018, Owen Paterson lobbied officials on behalf of Randox, which paid him £100,000 a year to act as its adviser. We also know that in March 2020, Randox Laboratories was awarded a no-bid Government contract worth £133 million. Despite being fast-tracked and essentially handed this multi-million-pound contract, it appears that Randox was not equipped to perform the task it had been given a shedload of public money to do. As The Times reported last week, just days after being given the contract, the company informed officials that they would struggle to carry out enough covid-19 tests without Government help, resulting in the Government sending the Army in to help. In an internal memo seen by The Times, a Government official wrote that the company was

“nervous about having sufficient systems”,

and that the Army was

“on way to Glasgow to pick up”

two machines urgently needed for testing.

[Alexander Stafford]

Will the hon. Member give way?

[Brendan O'Hara]

I will come to the hon. Member in a moment.

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[Tony Lloyd (Rochdale) (Lab)]

I am delighted to follow the hon. Member for Amber Valley (Nigel Mills), because I think he has tried to play this whole situation with a degree of integrity. The problem for us all is that it simply is not obvious whether that level of integrity has been followed all the way through.

Corruption does matter. The Prime Minister was very interesting at Question Time today when he used the defence of telling the House—and, through the House, the country—that we should not be talking about corruption because that lets our nation down vis-à-vis the rest of the world. The Prime Minister is absolutely wrong: when there is a whiff of corruption, it is vital that we talk about it and vital that we are seen to be working to uncover it. That is the problem we face.

I have no confidence, this House has no confidence, and nor even do Government Members. Government Back Benchers are not here in any numbers. [Interruption.] Many Conservative Back Benchers were not in for the opening speeches—the Opposition Benches were full—because many of them are concerned about this whiff of corruption. [Interruption.] The hon. Member for Rother Valley (Alexander Stafford) may want to ask me to give way, rather than chuntering away from a sedentary position. I am sure what he was saying was very interesting, but it was inaudible and therefore irrelevant.

[Alexander Stafford]

I am just surprised that the Opposition Benches are empty for an Opposition day debate when so many people claim that they want to discuss the issue. It is your debate. Perhaps you could explain where your Back Benchers are? I am intrigued because your side called it. Do they really care?

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Now that the hon. Gentleman has properly intervened and addressed the House not from a sedentary position, I can officially hear him, and I will just make it clear that he should not say “you”. The substance of what he says is not a matter for me, but he should not say “you”.

[Alexander Stafford]

Apologies, Madam Deputy Speaker.

[Madam Deputy Speaker]

We have had quite a lot of that today, including during Prime Minister’s questions. Just do not do it. Let us try to keep to the rules.

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[Alexander Stafford]

Will the hon. Gentleman give way?

[Owen Thompson]

Yes, please.

[Alexander Stafford]

If the hon. Gentleman is using that definition of corruption, does it apply to the £500 million-worth of contracts given out by the SNP Government in Scotland to companies without any competition? I am confused. On the one hand, the SNP Government in Scotland are giving out half a billion pounds-worth of contracts without any competition, but on the other hand the UK Government are doing something similar and that is corrupt. Either they are both corrupt or neither are corrupt—I am a bit confused.

[Owen Thompson]

I am eternally grateful to the hon. Gentleman for that contribution. He tried to make exactly the same point before and I think that this was pointed out to him. The key difference—the Minister herself said this—is that in a global pandemic steps need to be taken and everybody recognised that steps needed to be taken that are not necessarily in line with the normal process, but the UK Government employed a VIP lane open to Government Ministers and members of the Government party that was not open to anybody else. Contracts were handed out through personal contacts, WhatsApp exchanges and paid lobbyists for companies. That is the key fundamental difference here and I am so grateful that the hon. Gentleman gave me a chance to again highlight that point. [Interruption.] If he wants to try again, I am more than happy. [Interruption.] Okay.

It is very easy to get wrapped up in the day-to-day melodrama of this saga, but it is important to take a step back and look at the bigger picture. The real scandal is not that a couple of bad eggs broke the rules; it is that the system either consistently enables rule-breaking or completely lacks rules against this kind of behaviour. For instance, take the fact that the Government were completely within their constitutional rights to retro- spectively change the rules to let Owen Paterson off the hook. In what other system would that be acceptable? The system of government here works to enable corruption, not to constrain it, precisely because it gives the Government a blank check to make up the rules as they go along. The absence of a written constitution to constrain Governments means that this can keep happening over and over again, as it did in the ‘90s and ‘00s. If they do not like the rules that are currently there, they can just rip them up and put in new ones.

So the problem here is not bad eggs, it is the system. It is the fact that no UK Government can ever be accountable to anything but themselves. Parliamentary supremacy means that any Government can override past decisions. They can rewrite the rules to their own liking. It is no wonder that Brexiteers obsessed over it in 2016, because it is what has given them the green light to conduct themselves in the ways we are discussing today. The only thing that can ever constrain a Government is political pressure, which thankfully in this situation has worked, but that is an awfie shoogly peg to base your system of government on.

For that reason, this is not the first time that corruption has reared its ugly head in this place. Sadly, I doubt it will be the last time either. The very way that this Parliament is set up lends itself to allowing this to happen. If we do not change it, nothing will change it. I am under no illusion that this scandal will lead to some dramatic new system of government rising from the ashes like a phoenix—I cannot see it—but that is on the table in Scotland. Independence means we could have a written constitution that can guarantee in law that Governments are held accountable and transparency is guaranteed.

Openness and transparency benefits all of us in this place. It is in all of our interests to make sure that that is at the top of the agenda. Our constituents demand that and it should be our duty to make sure that they get that. Public servants should be here to represent their communities, not to line their pockets. Sadly, the lining of pockets has far too often recently been what has been on the table.