Oral Answers to Questions

Debate between Debbie Abrahams and Lord Maude of Horsham

Wednesday 11th February 2015 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

My responsibilities are for efficiency and reform, civil service issues, public sector industrial relations strategy, Government transparency, civil contingencies, civil society and cyber-security.

[Debbie Abrahams]

Today’s National Audit Office report on late payment says that the Government’s policy to pay invoices more quickly risks boosting the working capital of the main contractors rather than benefiting small businesses down the supply chain. Why then did the Government on three separate occasions refuse to adopt amendments I tabled ensuring that small businesses all the way down the supply chain would have been paid on time?

[Mr Maude]

We have gone infinitely further than any previous Government ever did to ensure that payment is speeded up through the creation of project bank accounts and inserting into main suppliers’ contract terms a requirement that they pay quickly as well, because the concern is a very real one. Small businesses can end up being starved of cash and it is not acceptable, so we are driving much better practice through these legal obligations. The situation is better than it was, but there is much more still to do.

Oral Answers to Questions

Debate between Debbie Abrahams and Lord Maude of Horsham

Wednesday 10th September 2014 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

7. What recent steps he has taken to remove barriers to small and medium-sized enterprises participating in government procurement.

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

In response to the hon. Member for Huddersfield (Mr Sheerman), I think that my tie is at least as pink as yours, Mr Speaker.

The direct spend of central Government with SMEs increased from £3 billion in 2009-10 to £4.5 billion in 2012-13. SMEs benefited from a further £4 billion in indirect spend though the supply chain. We are therefore well on track to deliver our ambition that 25% of Government spend through the supply chain should be with SMEs. However, we are still not satisfied, so we are taking forward a number of the recommendations of Lord Young of Graffham on creating an SME-friendly single market in, among other things, the Small Business, Enterprise and Employment Bill.

[Debbie Abrahams]

I thank the Minister for his reply. However, with £36 billion owed to small businesses in late payments, will he ensure that the Small Business, Enterprise and Employment Bill requires companies to demonstrate that they will pay all their suppliers promptly in order to be on the Government’s approved supplier list?

[Mr Maude]

The hon. Lady is a doughty campaigner on this front and I commend her for it. The policy of central Government is to pay undisputed invoices within five days and to pass 30-day payment terms down the supply chain as a condition of contract. The situation is therefore improving. We encourage our prime contractors to pay more quickly than the 30-day commitment on a voluntary basis. We have tasked Departments with managing their contracts in a way that ensures that that happens. We also encourage SMEs that are not being paid by the prime contractor sufficiently quickly to let us know so that we can investigate.

Oral Answers to Questions

Debate between Debbie Abrahams and Lord Maude of Horsham

Wednesday 13th June 2012 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

10. What steps he has taken to ensure clarity and efficiency in the delivery of policy across Government.

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

On 31 May we published business plans for 17 Government Departments, which clearly set out the actions that Departments will take to implement the Government’s reform priorities and by when. The No. 10 website publishes monthly updates on which actions have been completed and which are overdue.

[Debbie Abrahams]

Will the Minister explain how one Government policy operating in direct conflict with another—for example, the withdrawal of the right to flexible working conflicting with support for carers—amounts to efficiency?

[Mr Maude]

The particular issues are well outside my responsibilities, but I will cheerfully look at the question that the hon. Lady raises.

Oral Answers to Questions

Debate between Debbie Abrahams and Lord Maude of Horsham

Wednesday 21st March 2012 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

11. The Government say that they are committed to ensuring that 25% of all Government contracts will be awarded to SMEs, but official figures and the experience of SMEs in my constituency show that the situation is getting worse. When are the Government going to get their act together on this?

[Mr Maude]

I fear that the hon. Lady wrote her question before hearing my answer. We cannot make a commitment; it would be illegal to do that. We have an aspiration to move to 25%. The Government formed by the party of which the hon. Lady is a member did not even bother to measure how much of this was happening. In the past year, we have more than doubled the amount of spend that goes directly to SMEs, but there is further to go and we will go that distance.