Local Government Procurement

John McDonnell Excerpts

Thursday 13th March 2014 Commons Chamber

[Mr Betts]

Some of the councils that we studied took a robust and considered approach to benefits for their local economies, while others did not do quite so well in that regard. Again, it is necessary to learn from good practice. We asked the Government to carry out a post-legislative review of the Public Services (Social Value) Act 2012, which gives councils certain responsibilities, to consider its impact on local economies, and to extend its social value requirements to smaller contracts, which it does not currently cover.

[John McDonnell (Hayes and Harlington) (Lab)]

I welcome the report, but I urge my hon. Friend and the Committee to go further. I asked a succession of ex-council officers, serving officers and members of residents’ associations in the London borough of Hillingdon to consider some of the issues raised in the report. Let me give some examples. The first is the use of part 2 of the “Cabinet Meetings” document to maintain secrecy on matters relating to contracts that should be open and transparent, including poor performance and, in particular, decision making by councillors. The second is the use of compromise agreements involving a gagging clause preventing staff from exposing what has gone on after they have left.

As for my third example, let me introduce my hon. Friend to a term that is currently being used in the London borough of Hillingdon: the term “be restructured”. It means that the department of a whistleblower, or anyone who questions or criticises any decision made by the council, particularly decisions made by the leader of the council, will suddenly “be restructured”, and the whistleblower will be without a job. That is unacceptable. I think that I was the first Member to refer to the Transparency International report in the Chamber, and I am glad that my hon. Friend has drawn on it, because it revealed the openness of local government to abuse and, indeed, corruption. I think that we must be eternally vigilant.

I urge the Committee to move on to the agenda that has been set out in my constituency, and look into the concerns that have been expressed about local government performance in our area.

[Mr Betts]

My hon. Friend has raised a number of points. Let me deal first with his point about transparency. We support open-book accounting, but I accept that that means opening the books to the councils themselves rather than a wider agenda. Freedom of information is often not applied to every aspect of a contractor’s dealings. We urged councils to consider making that so, but did not direct them to do so because ultimately this is a local matter and they should be free to make that decision. As for whistleblowing, we concluded that a clear system that contractors would be required to adopt should be written into the contracts. There should be no effect on a whistleblower. They should be protected as part of the contract. If any whistleblower raises concerns with a contractor, the information must be passed on to the council. We also considered ways of enabling whistleblowers to draw attention to problems anonymously, which would probably involve a role for the National Audit Office.