Outsourcing: Government Departments
Graham Leadbitter Excerpts(3 days, 17 hours ago)
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Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
It is a pleasure to serve under your chairship, Sir Jeremy. I congratulate the hon. Member for Middlesbrough and Thornaby East (Andy McDonald) on securing this debate.
I want to take the debate in a slightly different direction, as there has not been much mention of national security so far. I am a Member for a constituency that has a large Ministry of Defence footprint, particularly in the RAF. Outsourcing of catering and mess facility management over many years has had a significant and detrimental impact on the cohesion of our fighting forces, not just on bases in my constituency, but in every base where outsourcing has occurred.
The reason is because we have a two-tier workforce. We have people who have been TUPE-ed across from the civil service, who started their career as MOD civil servants. They are now working alongside people who are on considerably lower pay for doing the same job. That creates division in the workplace. People who are getting paid less, and are valued less, then do not value their employer. This is understandable: why should anyone value an employer that does not particularly value them? We end up in a situation where there is less attention paid and standards fall.
There are situations where a contract is ending—with maybe six months left to run—and, for the sake of argument, let us say that the staffing complement for the team should be about 25 but it is now down to 15. Does the employer have any intention whatsoever of bridging that gap with another 10 people, when it is struggling to make a profit in the last six months of a contract? Absolutely not. It will be sucked up by the 15 people doing the job of 25. That is a totally unacceptable way to work.
If we parliamentarians and the civil service believe that the people who work directly for them are worth a living wage, they should believe that for every single person that is doing a job that facilitates what that organisation does. It is a simple act of fairness. In the military, they talk about the esprit de corps or a single-force approach; if there is that separation, then that is not there. If people are not getting the quality of food or accommodation they want, they will not stay. We can spend a fortune training them, and they can be very good at what they do, but they will not stay in because the facilities are not good enough for them. If we want a coherent military, people who are dedicated to it and good national security, we must treat all the workers, whether they are service personnel, civilians or contractors —and I would rather they were not contractors—with the same degree of respect and with the same degree of rights.
The other problem that I want to highlight is that people who have been TUPE-ed across when contracts have been put out may, broadly speaking, retain their pay and conditions, but what they do not tend to retain is their pension. That is an absolute travesty because it is completely mortgaging their retirement life and their right to a decent retirement. Many of them, particularly in more rural areas where our services are being provided, may not have other opportunities to move into another role within the same organisation to avoid being contracted out.
I want to pick up on a point that was made about radical socialism. There is nothing radical about paying a fair wage for a fair day’s work. It is just a matter of human decency. I will leave it at that.
Mike Wood
I really need to make progress so that the Minister can respond.
It is particularly troubling that Labour has refused to clarify exactly how the new procurement rules will work in practice. The NPPS, which is meant to lay out the Government’s plans, has yet to be published, leaving businesses uncertain about the future landscape of public contracts. The previous version was published nearly six months before the Procurement Act was due to commence. It is now less than four weeks before the date the Minister indicated that the Act will commence. There is no sign of what the new rules will be, and yet businesses will be expected to adapt.
Furthermore, it is essential to recognise that the regulatory burden placed on firms seeking Government contracts will have a chilling effect on investment, innovation and the growth that I understand the Chancellor is speaking of this morning. If businesses perceive that public procurement is more about politics than performance, they will simply withdraw from bidding for contracts. That will leave fewer providers and make us more reliant on a small number of mega-contractors, reducing competitive pressure to drive efficiencies. That would be disastrous for taxpayers, who deserve the best services at the lowest cost.
The previous Government recognised the need for reform and took decisive action to improve procurement. This Government, on the other hand, are undoing that work by creating a system in which trade unions hold the keys to public contracts and require businesses to comply with unnecessary and costly obligations that do nothing to improve service delivery.
Public procurement should be about securing the best services at the best price for the taxpayer, not about enforcing an ideological agenda. Labour’s approach will lead to inefficiency and waste, and will reduce competition —all at the expense of businesses and the public, who rely on well-managed services. If the Government continue down this path, they risk severely damaging the UK’s ability to run a fair and efficient public procurement system.
I have a number of questions that I hope the Minister will address. When will the Government next update their model services contract guidance and the outsourcing playbook? Are Departments still on track to save £550 million this financial year, as the Government promised they would in November? What steps are the Government taking to ensure that microbusinesses and SMEs are not excluded from bidding for, or engaging with, public sector outsourcing opportunities? What contact has the Minister had with the Business Services Association regarding any updates to the Government’s outsourcing policies? What discussions have she and her colleagues had with colleagues at the Crown Commercial Service regarding the operation of the RM6277 framework? Finally, do the Government still expect the Procurement Act to commence on 24 February? If they do, does the Minister think the very short time that businesses have to adapt between the publication of the policy statement and the commencement of the Act is acceptable?
Outsourcing and public procurement are a real test for this Government. Will they fall back on the ideology of the past or represent the interests of the public going forward? Are they working in the interests of those who use and pay for services, or in the interests of union paymasters?
Storm Éowyn
Graham Leadbitter Excerpts(5 days, 17 hours ago)
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Pat McFadden
It is really important for our national solidarity that when the resilience review is published in the spring, it does exactly what my hon. Friend says: it must consider resilience in not only the urban areas, but the isolated areas, which can often be the hardest hit, and are often hit for the longest time, when we have such emergencies.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
I offer my sympathies to everyone who has been severely affected by Storm Éowyn, and in particular those who have lost loved ones. I share the Minister’s acknowledgment of the work that has been and continues to be done in the aftermath of the storm. Huge thanks go to Scottish and Southern Electricity Networks, the ScottishPower emergency network, our local authority, staff at Openreach, our road and rail teams and all the emergency services for the way they have handled and responded to this weather emergency.
I have a couple of specific questions. Will the Minister commit to reviewing the operation of battery back-up phones, which are replacing phones on the copper wire network, including whether they are effective in a power outage, particularly in places where the power is off for long periods of time? Make no mistake: this weather event was caused by climate change and is yet another warning—if one were needed—against rowing back on our net zero commitments. Will the Minister acknowledge that and redouble efforts to tackle carbon emissions in an effort to protect future generations from the most extreme scenarios that we might face?
Pat McFadden
The hon. Member is right to point out that as technology changes and phone technology changes, we must not end up increasing our vulnerability. It is really important that regulators and phone companies consider that as those changes go through. Our commitments to the energy transition remain as they were. It is a big priority for us to increase our energy security as we move through the coming years.
Debate on the Address
Graham Leadbitter Excerpts(6 months, 2 weeks ago)
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Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
It is an honour to have been elected to represent Moray West, Nairn and Strathspey, which is something of an amalgam of a couple of previous constituencies. First, I would like to thank the electorate of the constituency for sending me to this place to represent them and for putting their trust in me for the years to come. On my arrival here, an amazing job has been done by the House staff, the Independent Parliamentary Standards Authority and others, and I cannot thank them enough for the welcome that they have provided us as new MPs.
I have a number of predecessors that I need to thank, not least because it is nearly two constituencies rolled into one. First of all there is Douglas Ross, who represented Moray for the Conservatives for several recent years. We were not very close on the political spectrum, it has to be said, but there were a number of occasions where we did come together across parties for the benefit of the constituency and the wider region, notably in the achievement of the growth deal for Moray and to maximise the spend that we got on that. I am sure the official Opposition would also want to thank him for his service in the Scotland Office.
My predecessor in Inverness, Nairn, Badenoch and Strathspey was Drew Hendry, who was a regular contributor from the Scottish National party Benches. He represented us as an Opposition spokesperson on the economy, trade, foreign affairs, business, enterprise and investment, and transport over several terms as an MP for that area. He was also an assiduous campaigner on energy poverty, which is a particular issue for the highlands and islands and in Moray. I hope that energy regulation is one of the areas that the Government’s commission on poverty will look at very seriously.
My right hon. Friend the Member for Aberdeen South (Stephen Flynn), the leader of the SNP in this place, mentioned the two-child cap. I will not go into too much detail on that because it has already been well covered, but energy poverty is a critical issue for many families throughout the highlands and Moray. Bringing in a social tariff, for example, would certainly make a big difference to families right across the highlands.
Other predecessors have included several well-known parliamentarians. Labour Members will, I am sure, be pleased to know that my constituency is the birthplace of Ramsay MacDonald, and it has also been represented very ably by several notable SNP MPs over the years. One of the most famous was Winnie Ewing, who reconvened the Scottish Parliament in 1999 and also represented the area in the Scottish Parliament, in this place and in Europe. Her daughter-in-law, Margaret Ewing, was an assiduous campaigner on poverty issues and will be well known to older members of the House—or longer-serving Members of the House is perhaps more parliamentary. More recently there was Angus Robertson, who led the party in this place for a good number of years and is now a Cabinet Secretary in the Scottish Government.
We can take a quick stroll through Moray West, Nairn and Strathspey. It goes from the white sands of Lossiemouth, Burghead and Nairn right up to the Cairngorms peaks. It has the city of Elgin in it, which has now been established as a cathedral city for 800 years; it is celebrating the 800th anniversary of the cathedral being established there. The constituency has the Speyside towns of Rothes, Aberlour and Dufftown. Dufftown, of course, is built on seven stills rather than seven hills. In the Badenoch and Strathspey towns we get Grantown, Aviemore, Newtonmore and Kingussie among others. We have surfing, skiing and mountain biking. There is a mountain railway, and we have a national park and a major wildlife park with everything from pine martens to polar bears.
Moving back up to the coast, in Ardersier we have the green freeport. The Scottish Government have worked closely with the UK Government on that, and I am sure they will continue to do so. The green freeport is incredibly important to us in Moray West, Nairn and Strathspey. It is projected to have 3,500 jobs within 10 years, and it will be vital for just transition. That will need careful scrutiny over the coming years.
Tourism, the labour market and affordable housing are major issues, particularly in the Badenoch and Strathspey area. Businesses have difficulty with staffing. They are often open only four or five days instead of seven. There is not really any significant unemployment—it is about 2% to 3%. There may be some room for getting more employment from the local labour market, but fundamentally the biggest impact on the labour market there has been Brexit. Immigration in that part of the world is a really significant issue, in that there is not enough of it. We have difficulty staffing care homes, the NHS and many businesses, which are fighting over the same labour population.
We have iconic food, drink and fashion brands, including Walker’s Shortbread and Baxters, not to mention the 49 distilleries that produce malt whisky and the numerous other distilleries that produce gin and vodka. There are also a number of breweries. We contribute extremely significantly to the Exchequer, and it is really important that we get some of that back.
We also have three military bases. Fort George currently hosts the Black Watch—the 3rd Battalion, Royal Regiment of Scotland. Kinloss barracks is home to 39 Engineer Regiment, and RAF Lossiemouth is home to Typhoon, Poseidon and arriving Wedgetail squadrons. The welfare of service personnel and veterans is absolutely vital, and it is something I will raise frequently in the House.
Civilian aerospace and space are the other major emerging sectors. Orbex in Forres employs well over 100 people, and it will be doing vertical launches from Sutherland and the SaxaVord spaceport. The right hon. Member for Orkney and Shetland (Mr Carmichael) will have to forgive me, but its headquarters are, in fact, in Moray West, Nairn and Strathspey.
Finally there is agriculture. Crofters and hill farmers based in Badenoch and Strathspey in the Cairngorms national park face particular challenges. We also have arable and the pork sector in the laich of Moray, where there are again employment challenges that need to be tackled.
Moray West, Nairn and Strathspey is the fifth largest constituency, and it takes more than two hours to drive end to end, but what a drive it is—I would recommend it to anybody. I look forward to representing the people living and working the length and breadth of my constituency.