Eurotunnel: Payment

Andy McDonald Excerpts

Monday 4th March 2019 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

(Urgent Question): To ask the Secretary of State for Transport to make a statement on the payment of £33 million to Eurotunnel over no-deal ferry contracts.

[The Secretary of State for Health and Social Care (Matt Hancock)]

I would like to update the House on the settlement that the Government have reached with Eurotunnel, which will help to deliver the unhindered supply of vital medicines and medical devices in the case of a no-deal Brexit.

The best way to ensure a smooth and orderly exit from the EU, both for the NHS and for the wider economy, is to support the deal that the Attorney General is currently finalising. Anyone in this House who cares about the unhindered supply of medicines should vote for that deal, but leaving the EU without a deal remains the default position under the law, and it is incumbent on us to keep people safe. It is therefore vital that adequate contingency measures are in place for any Brexit scenario.

Preparing for a no-deal exit has required significant effort from the NHS, the pharmaceutical industry and the whole medical supply chain, and I pay tribute to their work and thank them for their efforts on these contingency measures. The settlement struck between the Government and Eurotunnel last week is an important part of these measures. Because of the legal action taken by Eurotunnel and the legal risks of the court case, it became clear that, without this settlement, we could no longer be confident of the unhindered supply of medicines. Without this settlement, the ferry capacity needed to be confident of supply was at risk. As a Government, we could not take that risk, and I doubt anyone in this House would have accepted that risk, either. With this settlement we can be confident, as long as everyone does what they need to do, that supply will continue unhindered. Under the settlement, Eurotunnel has to spend the money on improving resilience, security and traffic flow at the border, benefiting both passengers and business.

The Department for Transport, on behalf of the whole Government, entered into these contracts in good faith. Our duty is to keep people safe, whatever complications are thrown up. Although we continue to plan for all eventualities, it is clear that the best way to reduce all these risks is to vote for the deal in the days to come.

[Andy McDonald]

Once again, the Transport Secretary is not in his place to answer a question directed to him. His disregard for taxpayers and this House is clear. On Friday he reached a £33 million out-of-court settlement with Eurotunnel to provide services in the event of a no-deal Brexit because the Government were going to lose the case.

The Transport Secretary’s decision to bypass procurement processes in awarding a contract to Seaborne Freight, a ferry company without any ships, breached public procurement rules, and Eurotunnel had the Government over a barrel. Will the Minister now detail the total cost to taxpayers of this decision, including legal costs? How much money will be paid up front?

Eurotunnel will seemingly make Brexit-related improvements at Folkestone. Can the Minister say exactly what sort of agreement the Government have with Eurotunnel? What makes him think that this contract with Eurotunnel will not be challenged on anti-competition grounds? A former Department for Transport adviser said:

“there is a risk it could be construed as another piece of public procurement without open and transparent competition.”

That would risk further legal action and yet more public money being squandered.

Even in this golden age of ministerial incompetence, the Transport Secretary stands out from the crowd. He leaves a trail of destruction in his wake, causing chaos and wasting billions of pounds, yet he shows no contrition, no acknowledgment of his mistakes and no resolve to learn and improve. He is now ridiculed in The New York Times. The mayor of Calais has banned him from his town. The Transport Secretary has become an international embarrassment. The Prime Minister is the only person in the country who retains confidence in this failing Transport Secretary, and she does so only because of her own political weakness. The public deserve to know: how many more calamities is the Prime Minister prepared to tolerate? How many more billions of pounds will she allow him to waste before saying, “Enough is enough”? This country cannot afford this Transport Secretary. He should be sacked without delay.

[Matt Hancock]

In listening to that, I notice that the hon. Gentleman did not disagree with the decision we made on Friday. That decision was to ensure that we have the ferry capacity in place so that whatever happens in the Brexit scenario we can have the unhindered supply of medicines. That is the duty of this Government and that is why the whole Government came to this decision. He asked some specific questions, which I answered in my statement. However, let me reiterate: this is a legal settlement with Eurotunnel; the maximum cost is £33 million, as was set out clearly on Friday; and the purpose of the decision is to ensure that unhindered flow of medicines. So, as I said in my statement, the purpose of this is to make sure that whatever happens in Brexit people can be safe. I was happy to support that decision, which everybody in this House would have made in the same circumstances.

--- Later in debate ---

[Mr Speaker]

Points of order are flowing from this urgent question and, exceptionally, I will take them, if they are relatively brief.

[Andy McDonald]

On a point of order, Mr Speaker. I seek your guidance. This is now the second time that I have tabled an urgent question asking the Transport Secretary to come to the House and respond. We are told that he is busy—presumably pouring more money down the drain. Should he not be here, and what can you do to secure his attendance?

While we are at it, will the Secretary of State for Health and Social Care come to the Dispatch Box and explain that he has inadvertently misled the House by saying that this has nothing to do with Seaborne Freight? It has everything to do with that contract. That was the reason Eurotunnel took the Government to court in the first place. He must put the record straight.

[Mr Speaker]

I am grateful to the shadow Secretary of State for his point of order. As he will know, the choice of Minister to respond to an urgent question is exclusively a matter for the Government. For example, it is commonplace for somebody other than the Secretary of State to appear. It is not altogether uncommon for a Department other than that at which the question was tabled to field a representative to respond. I recognise that it is relatively unusual for the Secretary of State in the Department questioned not to appear, and for someone who rejoices in the seniority of Secretary of State in another Department to appear instead, but we should never underestimate the enthusiasm, stoicism and commitment to regular performance in the Chamber of the Secretary of State for Health and Social Care, and he has demonstrated that again this afternoon. Colleagues will form their own assessment of how he has batted at the wicket of the governmental team.

As to what the Secretary of State said about the question not being about Seaborne Freight, I think I will say that he has placed his own interpretation on the matter, and colleagues will form their own assessment. I thought that most of the inquiries were about legal action flowing from the cancellation of the contract, but the Secretary of State does have a legitimate public policy interest in the matter, both as a member of the Government and because of his regard for the safe delivery of medicines. Some people will think that he was absolutely right, and others will think that his interpretation of matters was a tad quirky, but nevertheless he has offered us his own assessment and colleagues can now assess it at leisure, possibly over their tea.