Covid-19: Contracts and Public Inquiry

Gavin Newlands Excerpts

Wednesday 7th July 2021 Commons Chamber

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

I welcome the opportunity to speak in this Opposition day debate on the awarding of covid contracts. It is probably worth starting with where we were 16 or 17 months ago. At the time, we were just hearing about the covid-19 pandemic and what it meant for our lives. With the benefit of hindsight, things may have been done slightly differently, but we should not use our experience over the past 16 or 17 months to prejudge the decisions that we had to make very quickly as a nation back in February and March last year.

I had the honour of sitting on the Public Accounts Committee earlier in my parliamentary term. Under the stewardship of Gareth Davies, the Committee works hand in glove with the National Audit Office. I know that the Committee, ably chaired by the hon. Member for Hackney South and Shoreditch (Meg Hillier), has done various investigations into the response to the pandemic, with a particular focus on procurement and money. Scottish National party Members will be grateful to know that their colleague the hon. Member for Glenrothes (Peter Grant) is a vocal member of the Committee and, I am sure, will give wise counsel in future debates.

When I saw the topic of the debate, I was a bit surprised that the SNP had decided to call for it. I refer to its manifesto earlier this year in the local government elections that we had up in Scotland.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Parliamentary elections.

[Mr Mohindra]

Sorry—the national Holyrood elections. The manifesto, on page 9, committed to a Scotland covid review. Unfortunately, the leadership up there has now done a U-turn and has not committed to that, so on behalf of the Royal College of Nurses and the GMB union, I urge them to have a rethink and hopefully commit to delivering what was promised in the manifesto.

My hon. Friend the Member for South Suffolk (James Cartlidge) referred to the disappointing news that Edinburgh is regarded as the covid capital of Europe. I will not be political on this one; I just think that it is a disappointment and that all colleagues across the House will hope that, with our heated debate and constructive criticism, we will get a better result quickly. With that sentiment in mind, I urge colleagues: where Government Members can help, please do not be shy about asking.

Let me go back 16 or 17 months, with the benefit of hindsight—unfortunately the Leader of the official Opposition is not in his place; he uses hindsight a lot. There was a real fear that, as a country, we were potentially running out of PPE. It was this Conservative Government who gave a call to arms and said, “Actually, the United Kingdom needs a national effort”. We did that to ensure that we had the right PPE and other things in place for those on our frontline. Reference has been made to not using the normal procurement process and I urge colleagues to look at the Public Contracts Regulations 2015, which allow the accelerated procurement that has been used during this global pandemic—an event that fortunately happens only once every 100 years, approximately.

Colleagues on both sides of the House refer to the quantum of PPE and I think we need to put that in context. We have an additional 22,000 ventilators, 11 billion pieces of PPE and 507 million doses of vaccine. Those are phenomenal figures. Did each procurement absolutely hit the spot? No, but the figures quoted earlier in this House, I suggest, were a very small percentage of poor delivery, and I am sure that the National Audit Office, the Public Accounts Committee and various other bodies in this House and in the Palace will look into that further.

There have been various accusations about relationships that Conservative Members of Parliament may have with business owners or others involved in procurement. I gently urge Members to be mindful that there have been multiple independent investigations, including some in this House and from the National Audit Office, that have all shown that there was no conflict of interest with Members of Parliament, and that if there were, they were properly declared at the time.

Reference has been made to the Boardman review, which reported at the back end of last year and the 28 recommendations that the Government have already committed to implementing. I know that Opposition Members were urging a quicker review and investigation on the pandemic, but the deputy chief medical officer has argued that this would be regarded as “an extra burden” and a “distraction” from the successful vaccine roll-out.

Reference has been made to the SNP Scottish Government’s procurement processes and the fact that £539 million of grants and contracts were awarded without a competitive process or proper scrutiny. I urge colleagues to have a look at the Audit Scotland review, which has investigated the three separate pandemic preparedness exercises that were undertaken, with some of the lessons that should and need to be learned from that. I will leave it there; I look forward to other contributions.

--- Later in debate ---

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

It is nearly 50 years ago, long before I was born, incidentally—[Interruption.] It was a good decade before, I say to colleagues shouting to the contrary. It is nearly 50 years since the Poulson scandal began. It was a tawdry affair with politicians, civil servants, local government and industry all enmeshed in a network of bribery and corruption that rocked the establishment through the early ’70s, yet the amounts involved, even allowing for inflation, are miniscule when compared with the moneys that have flowed through the UK Government and been disbursed to the chosen ones.

Poulson went to prison for three years for paying around £500,000 in bribes to secure building contracts. Last November’s National Audit Office reports alone looked into £17.3 billion-worth of covid-related contracts, while the most recent total is over £31 billion. Those reports painted a picture of procurement policies that were simply ignored and skirted, where managing risk went out the window. They also lay bare the golden trough that was laid on for those fortunate enough to enjoy VIP status and the ear of Ministers or Government officials. Those able to use that high-priority lane were 10 times more likely to be successful in securing a contract than those unlucky enough to have to do things by the book.

Giving favoured companies and individuals VIP status and allowing them to jump over procedures put in place for mere mortals was a happy event for one pub landlord, who counted the former Health Secretary, the right hon. Member for West Suffolk (Matt Hancock), as one of his regulars—so regular that he appears to have had the former Minister’s mobile number and sent him a message selflessly offering his firm’s services. A few weeks later, those services were indeed taken up by a medical products distributor involved in supplying the NHS. At least that particular individual appears to have done nicely over recent months, because not everyone these days can afford a £1.3 million country house.

The National Audit Office report on Government procurement in the first months of the pandemic makes for damning reading. The word “inadequate” appears too often for comfort. At various points, the NAO mentioned that there was

“insufficient documentation on key decisions”,

and that

“contracts…have not been published in a timely manner”,

as well as

“diminished public transparency…the lack of adequate documentation”,

and so on, and so on.

No one doubts the exceptional—perhaps unique—situation that the Government found themselves in last year. It is clear that emergency procedures are justified in a public health emergency. Indeed, we support them and have used them in Edinburgh, but that does not give Ministers and the Government the right to excuse themselves from basic norms of transparency and accountability and throw billions of pounds of taxpayers’ money—or rather, future taxpayers’ money, given the levels of borrowing needed—at companies who, in many cases, turned out to make Del Boy or even Arthur Daley look legitimate.

[Sarah Owen (Luton North) (Lab)]

Will the hon. Gentleman give way?

--- Later in debate ---

[Gavin Newlands]

With apologies, I will not, just because of time.

Some £108 million was given to a company with net assets of £18,000, another £108 million was given to a company small enough to be exempt from publishing full accounts, and £252 million was given to a company advised by an individual who was also an adviser to the UK Board of Trade. There is no allegation that those companies have done anything wrong themselves. Many would say that their job is to make money—and that they certainly did. But the Government’s job was not to enrich obscure micro-companies with nine-figure sums, but to equip our public services with the equipment to do their job safely and to ensure value for money in the process.

In each of the cases, the Government have fought tooth and nail to hide behind secrecy and use the pandemic as an excuse for ignoring the norms of transparency and accountability that are there for a very good reason. That abandonment of transparency was then used by the Minister for the Cabinet Office to commission polling into attitudes to the UK Union at a cost of more than half a million pounds.

Like most people dealing with the effects of the pandemic, I struggle to see why polling aimed entirely at promoting the Government’s political agenda can in any way be classed as emergency procurement. It is shabby, disreputable and a complete misuse of what should be a carefully used and monitored short-circuiting of normal procurement rules.

It is also just a little ironic that the Conservative party, which almost hourly accuses the SNP and others of being obsessed with the constitution, demonstrates its own myopic obsession with the Union by using the cover of a national and international health emergency to do so.

No one is suggesting that routes should not be available for the Government in times of real crisis to act swiftly and decisively outside what the norms are during relative periods of calm. Extraordinary times call for extraordinary measures, and we were and are still living in extraordinary times. But the evidence that has emerged—forced, bit by bit, out of the Government, against their will at every step of the way—shows how the measures have been abused by a cabal who appear no longer to care about probity and transparency, but instead to have been caught in the act of shifting millions out of the back door when no one was looking.

The Prime Minister has promised a “full, proper public inquiry” into the covid pandemic, which of course I welcome. But as others have said, there is no need to wait. That inquiry must also include a full and open examination of the Government’s procurement policies, with every one of these deals open to public scrutiny. Those who have attempted throughout the past 16 months to hide their dealings from Parliament and from the public must be called to account for their actions and asked to explain why.

There is a way for Scots to be rid of these spivs, speculators—

[Andrew Bowie]

indicated dissent.

[Gavin Newlands]

If the hon. Gentleman wants to intervene, he is more than welcome—if he is very brief.

[Andrew Bowie]

I might finish the hon. Gentleman’s speech for him because I am quite sure that I know what his next line will be. I will let him continue to finish his speech.

[Gavin Newlands]

I am very grateful for that intervention; that was very useful. But the hon. Gentleman’s groans were indeed correct: I am going to talk about our way out of this, which is through independence. No number of attempts from the hon. Gentleman or the Front Benchers in front of him to muddy the waters by briefing on changing the voting franchise will stop it from coming. At the end of the day, the UK Government’s actions such as those we are debating today, when combined with Brexit, make Scottish independence absolutely inevitable. In their dying days, and as we witness what counts as a Government in this place, the time cannot come quickly enough.