Police Procurement (Motor Vehicles)

Lord Brady of Altrincham Excerpts

Thursday 16th July 2015 Westminster Hall

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I am grateful for the opportunity to speak in this important debate. I am also grateful for the clear and compelling case made by my hon. Friend the Member for City of Chester (Christian Matheson). He explained the circumstances in which this matter has been raised.

The British manufacturing sector includes 11 of the world’s leading global vehicle and engine manufacturers: Aston Martin, BMW, Ford, General Motors, Honda, Jaguar Land Rover, Lotus, MG, Nissan, Toyota and Volkswagen. Several of those manufacturers are in close proximity to my constituency. The Vauxhall Motors plant in my constituency employs several thousand people locally and many more elsewhere in the supply chain. Motor vehicle manufacturing is a key part of the local economy, as it has been for more than half a century.

We recognise that police budgets are under pressure as a result of Government decisions. Central funding to police forces has fallen by £2.3 billion in real terms since 2010—a 25% reduction in five years—so the challenges faced by the police and crime commissioners and chief constables making such decisions are real. The need to ensure value for money for the taxpayer is greater than it has ever been.

As correctly highlighted by my right hon. Friend the Member for Leicester East (Keith Vaz), the concept of a procurement consortium is good, because the combined purchasing power of many police authorities can deliver significant savings. I have seen many examples in local government of how that has worked to the benefit of the taxpayer. That power should be utilised to provide wider benefits. When looking for value for money on an issue such as vehicle procurement, it is important that we take a wider, more holistic approach than simply looking at individual unit cost. We need to look at the value, not just the price. That encompasses a range of issues, including fuel economy, servicing, maintenance cost, resale value, fitness for purpose and, most importantly, social value.

I share the anxiety expressed by my hon. Friend the Member for City of Chester about having a narrow, short-term approach to procurement, which could end up costing us much more by providing poor value for money. That is particularly true when we look at social value, which seems to have been completely disregarded in this case. As my hon. Friend said, a cursory look at police fleets in other countries shows that we stand almost alone in failing to recognise the importance of social value as part of the procurement process.

In France, the police use Citroens, Renaults and Peugeots, produced in French factories. In Germany, they use Mercedes, BMWs and Volkswagens. In Spain, they use SEATs. In Sweden, they use SAABs and Volvos. In Italy, they have Alfa Romeos, Fiats and a few Lamborghinis—I am not quite sure what value those bring. All those countries are governed by the same directive as we are, yet they are all able to procure in a way that supports their own industries. I ask myself why police officers in Cheshire are using vehicles made thousands of miles away rather than those made down the road at the local Vauxhall factory.

We should pay tribute to the success of Vauxhall Motors in Ellesmere Port in recent years. In the face of stiff competition from other General Motor plants across Europe, it has consistently seen off threats to its existence. Management and trade unions have worked together to show that British industry can be competitive and adaptable. Just this week, the plant is looking to recruit more than 50 young people in new roles as it prepares for the launch of the latest model of the Astra.

The continued revival of the UK car industry through initiatives such as the Automotive Council leaves us with the conundrum that one of our most dynamic and successful industries has been leading the way in our bid to increase exports but appears unable to compete with foreign manufacturers on its own patch. We should be proud of the success of Vauxhall and other British manufacturers, but we should not be complacent about the challenges they face. We should take every opportunity to bolster that success.

We seem to be procuring more skilfully in other parts of the public sector. I note, from a response to a written question I tabled recently, that the Government car service has shown improvement in that area. From 2011 to 2014, 80% of all vehicles purchased by the Government car service were manufactured in the United Kingdom. Clearly, I would like that figure to be 100%, but it is a lot better than the 0% for policing.

I join my hon. Friend the Member for City of Chester in urging the Minister to get the police and crime commissioners together to find a way to support British business. Do we really want to make ourselves the laughing stock of Europe on this subject? Do we really want to miss this opportunity to secure more jobs and investment in our car industry? I understand that procurement processes have to be legally robust, but a comparison with other European countries shows we are missing a trick somewhere. I hope a way can be found to procure in a way that delivers value for money for the taxpayer and boosts our economic performance.

[Mr Graham Brady (in the Chair)]

We now come to the first of the Front-Bench winding-up speeches, after which Mr Matheson will have the opportunity to make a short reply.

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[Keith Vaz]

rose—

[Mr Graham Brady (in the Chair)]

Order. The Chairman of the Select Committee did not stand earlier, but given that he clearly would like to speak and that we have time, I call Mr Vaz.