Oral Answers to Questions

Drew Hendry Excerpts

Tuesday 8th January 2019 Commons Chamber

[Greg Clark]

I completely understand the requirements of business, including the manufacturers the hon. Lady mentions. It is essential that we be able to continue to trade, which is why I have always been clear—representing very strongly the views of small business and large business—that no deal should not be contemplated, but the way to avoid no deal is to do what the motor manufacturers, the Institute of Directors, the Federation of Small Businesses, the British Chambers of Commerce and all the business organisations say we should do, which is vote for the agreement that will come before the House next week.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Lang may yer lum reek, Mr Speaker.

One way the Government are looking to maintain cross-border supply chains is by Government tender to shipping companies, but is the Secretary of State happy about the precedent set for UK businesses? His colleague the Secretary of State for Transport has awarded a £14 million contract to a company with negative assets of nearly £400,000, no ships and terms and conditions copied from a takeaway, while the contract itself seems to have been awarded on questionable legal grounds. Is this the standard he expects for all UK businesses tendering for UK Government contracts?

[Greg Clark]

It is evident that avoiding no deal is an essential task for all of us in the House, and I hope that in the days ahead the hon. Gentleman and other hon. Members will take the opportunity to obviate the need for those contingencies. The Secretary of State for Transport has an opportunity to come to the House later today, but it seems to me prudent and responsible for every Department to prepare, on a contingency basis, for no deal, while also being firmly resolved to avoid it.

[Drew Hendry]

The Secretary of State has not answered the question. Will all UK businesses see such largesse from the Government in respect of procurement contracts? One of Seaborne’s directors ran a business that went into liquidation owing HMRC nearly £600,000, using employee benefit trust tax avoidance schemes. According to the director, the Government did not even consider the money owed to Her Majesty’s Revenue and Customs to be relevant. Is that a sign of a Government who are out of control over Brexit?

[Greg Clark]

I hope the hon. Gentleman will agree that, as I have said, every Department should make preparations against the avoidable contingency of no deal. The Secretary of State will describe the procurement processes for which the Department for Transport opted, but it is fair to observe that not a penny of Government money has been paid to the company, and I understand that it will be paid only on receipt of services provided.