NHS PPE Supply Chains: Forced Labour

Catherine West Excerpts

Thursday 14th July 2022 Westminster Hall

[Catherine West (Hornsey and Wood Green) (Lab)]

It is a pleasure to contribute to this debate under you chairmanship, Ms Rees. I thank the hon. Member for Strangford (Jim Shannon) for securing it. He is, of course, well known in the House for his commitment to the defence of human rights and the freedom of religion or belief. Given the ongoing Conservative party leadership election, and the comments made by some candidates in recent days regarding policies and views relating to China and human rights, this debate is particularly timely.

Having a new Prime Minister and a fresh ministerial team this autumn will give us a real opportunity to do the right thing, not only in purchasing PPE but in applying pressure on Governments and in legislating to ensure that private sector organisations do their bit to promote human rights. The number of human rights staff in overseas posts has been cut back severely since 2010. I sincerely hope that the Foreign, Commonwealth and Development Office will replace them, because that is how we know exactly what conditions are like in manufacturing and overseas supply chains.

We know that there are many concerns about supply chains that arise from the Xinjiang province of China, with the Chinese Government being routinely accused of using the Uyghur minority population as slave labour. As the hon. Member for Strangford has said, at least 20% of all global cotton and 80% of Chinese domestic production, has its provenance on the Xinjiang region. The scale of the problem is why this issue is so important.

It is vital that the NHS, as one of our proudest national achievements and a large purchasing unit, is not implicated, either directly or indirectly, in forced labour or questionable supply chains. But we know, sadly, that that is often the case. Pre-pandemic, PPE global supply chains were already known to be riddled with trade union and human rights violations, but it has worsened in the past 28 months. However, many of the companies supplying PPE have vastly increased their profits.

Forced labour has increased but this is not just a story about forced labour. Authoritarian Governments have used the pandemic to further restrict workers from organising into trade unions. All over the world, in all sectors, collective bargaining agreements have been ripped up and thrown away. In a number of countries in the Asia-Pacific area, wage theft is sadly a feature of the production of PPE basics such as rubber gloves, gowns and surgical masks.

I acknowledge the ongoing work of the trade union movement, not least Unison, which has been campaigning on this issue for some time. Labour’s position has always been clear and consistent—that we must remove any suggestion of forced labour from the NHS’s PPE supply chain.

My hon. Friend the Member for Ilford North (Wes Streeting), the shadow Health Secretary, has spoken clearly about Labour’s support for legislative measures during the passage of the Health and Care Act 2022, particularly given the significant amount of public money that has been wasted through crony contracting. The Government should resource adequately the checks on procurement and bring to book any companies that fail to follow guidelines on supply chains. We cannot allow public money for our NHS to pay for questionable contracts, to enable forced labour, or to be part of our entering trade deals that contradict the spirit of the UK’s obligations under the genocide convention.

The issue is not new and today is not the first time that it has been raised. As we are aware, there is a requirement on Governments that are signatories to the genocide convention to act even when there is only a suspicion that genocide might have occurred, and not to turn a blind eye to human rights infringements.

As the hon. Member for Strangford mentioned in his opening remarks, the House has voted that the evidence that has been brought to light about slave labour in the People’s Republic of China amounts to evidence of a genocide. There is some debate in wider terms around that issue, but the genocide convention bypasses that point and that debate about definition by saying that even when there is just a suspicion that there could be some form of genocide, Governments who are signatories to that convention ought to take action. Consequently, I am pleased that following the passage of the Health and Care Act 2022, there has been some movement by the Government.

I urge the Minister to respond to the points that have been made in this debate, to clarify the position today; the 2022 Act completed its passage only a short time ago. What cross-departmental work is being undertaken to apply the guidelines that we have discussed across other Government procurement practices? What guidelines have been issued to local government, for example? The average local authority in inner London has a £1 billion turnover. Other large purchasing units at Government level also ought to be aware of the duty to prevent potential human slavery or potential genocide. What discussions has she had with the trade union movement to ensure that its views, expertise and research are integral to the formation of any strategy to clean up our supply chains?

--- Later in debate ---

[Maria Caulfield]

Absolutely. We have secondary legislation coming forward that will enact what was agreed in the Health and Care Act 2022, which will look at some of this issue. The Procurement Bill is also passing through the House of Lords and will come to our Chamber. It will look at procurement more generally, not just NHS procurement. If he and other hon. Members with a keen interest in the subject, such as my hon. Friend the Member for Congleton, have specific questions on NHS procurement, I am happy for them to write to me and we shall see whether we can look at them as part of scrutiny of the Bill as it progresses. He is right that we want to ensure that we are learning lessons and sharing best practice across the board. I cannot speak for other Departments, but we are keen to get that right for the NHS where possible.

We are taking steps to achieve greater supply chain visibility, particularly where risks are highest, with the recognition that workers in the lower tiers of supply chains are often the most vulnerable. In line with that, we ensure that all contracts placed by the Department adhere to standard terms and conditions that include clauses requiring good industry practice to ensure that there is no slavery or human trafficking in supply chains.

Suppliers appointed to NHS supply chain frameworks must also comply with those standards or they can be removed from consideration for future opportunities. All the suppliers of PPE frameworks let in conjunction with the Department were registered and required to complete a modern slavery assessment and a labour standards assessment. Our purchase process includes safeguards to strengthen due diligence and to terminate a contract should there be substantiated allegations against a provider.

We are not content to rest on the status quo, which is why the Health and Care Act contained a regulation-making power that will come into force, designed to eradicate the use in the NHS of goods or services tainted by slavery or human trafficking. The regulations will set out the steps that the NHS should be taking to assess the level of risk associated with individual suppliers and the basis on which it should exclude them from a tendering process. Those regulations will help to ensure that the NHS, the biggest public procurer in the country, is not buying or using any goods or services produced by or involving any kind of slave labour. It represents a significant step forward in our mission to crack down on the evils of modern slavery wherever they are found. We are grateful to the work of modern slavery campaigners, who hailed the regulations as

“the most significant development in supply chain regulation since the Modern Slavery Act 2015”.

Alongside those regulations, the Health and Care Act also requires the Secretary of State to carry out a review into the risk of slavery and human trafficking taking place in NHS supply chains and to lay before Parliament a report on its outcomes. That review will focus on NHS supply chain activity, as well as supporting the NHS to identify and mitigate risks with a view to resolving issues. The review and the regulations will send a clear signal to suppliers that the NHS will not tolerate human rights abuses in its supply chain; they will create significant incentives for suppliers to review their practices; and they will block, if necessary, any suppliers that are found to be using human trafficking or slave labour.

I was moved to hear the cases of the Uyghurs that the hon. Member for Strangford raised. He is right that that goes far beyond the NHS, which is why the Procurement Bill, currently passing through the other place, is an important piece of legislation. I am sure that he and other hon. Members, such as my hon. Friends the Members for Wealden (Ms Ghani) and for Congleton, and my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), who are assiduous campaigners on the issue, will take a keen interest in that.

I conclude by thanking all hon. Members for their contributions. Modern day slavery is a deplorable practice that causes irreversible harm to those affected. We all have a responsibility to call it out. As a Department, we take it extremely seriously. I hope that, by sharing what is happening, I have given hon. Members confidence that we will do all we can to root it out and take out of our supply chains any affected pieces of equipment.

[Catherine West]

The Minister is being generous; I recognise that she is speaking from a health perspective. Will she undertake to write to hon. Members present about the Government’s progress on cross-departmental best practice sharing from her Department?

[Maria Caulfield]

I am very happy to do that. While I have been able to highlight what the NHS is doing, some good cross-departmental work is also being done on procurement and on identifying where slavery is happening both globally and domestically. I highlighted the evidence from Mo Farah this week. We must not take it for granted that slavery is not happening in this country. I am happy to write to the shadow Minister and those who have taken part in the debate to highlight the work that is happening across the Government. It has to be a cross-Government initiative to make sure that we are all working together to root this out. Much remains to be done to ensure that we deliver the message that modern day slavery is completely unacceptable. I look forward to working with MPs across the House to make sure that we all do our bit.