Randox Covid Contracts

Karl Turner Excerpts

Wednesday 17th November 2021 Commons Chamber

[Gillian Keegan]

I will give way to hon. Members, but if they want to hear some of the facts, of which I have lots, I am happy to get on with my speech. I will give way to the hon. Member for Kingston upon Hull East (Karl Turner) on this occasion.

[Karl Turner (Kingston upon Hull East) (Lab)]

I am grateful to the Minister for giving way. She has been given a terribly tough gig, but she does not seem to be answering the point made a little earlier. Arco in Hull had existed for 135 years and had supplied the NHS with top-quality products since its very inception. It was blocked from the VIP lane—why?

[Gillian Keegan]

As I said, I would like to get on to answering some of these questions, so if Members will bear with me and let me get my speech out, I will have time to answer further interventions.

The context in which we were operating was the fear that we would run out of vital testing equipment, that we would not have the capacity to test people for covid and that, as a result, this deadly virus would continue to pass from person to person, overwhelm our national health service and cause untold devastation. It is the duty of any responsible Government to do all they can to prevent such a grim outcome, to save lives, to protect our key workers and to partner with as many people as are available with the experience and expertise to get things done. So we engaged with many thousands of businesses, large and small, from all over the country and all around the world, to set out what we needed and find out what they could do.

Randox has been globally recognised in the in vitro diagnostics industry for nearly 40 years. It is a British business with roots in Northern Ireland and a history of developing diagnostics solutions for hospitals, clinical settings and research labs. Even as early as March 2020, Randox had lab-based polymerase chain reaction testing capacity for covid-19. Against the fears that we would not have enough testing capacity, we worked with companies with existing diagnostic capability—that is just plain common sense.

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[Anneliese Dodds]

The Minister is obviously doing her very best, but yet again, I am afraid that this is not an edifying spectacle. In the overwhelming majority of cases, the recommendation led to companies receiving enormously expensive contracts. It is risible to suggest anything less. It is also risible to suggest that in those cases the Government followed their own emergency procurement guidance:

“Contracting authorities should maintain documentation on how they have considered and managed potential conflicts of interest in the procurement process…Particular attention should be taken to ensure…decisions are being made on the basis of relevant considerations and”—

wait for it—

“not personal recommendations.”

There was nothing inevitable about this. I know how things ran in Labour-run Wales, and they did not run like this.

We have seen that companies with links to the Conservative party were 10 times more likely to secure a contract than others. Public money was doled out based not on a company’s abilities but on its contacts book. When it comes to spending taxpayers’ money on testing and PPE equipment that can save lives, one would hope that the Government would take things more seriously, but as my hon. Friend the Member for Wallasey (Dame Angela Eagle) said, the switch into an emergency process provides no justification for the ransacking of public money we have seen. As the hon. Member for Amber Valley said, an emergency situation was not a reason for having no process at all. In practice, there should have been more sensitivity around the process, not less.

Because of the Government’s approach, British businesses that did not have Tory MPs on speed dial missed out.

[Karl Turner]

I know that the Minister has not managed to answer the question that I posed earlier, but Arco, in the city of Hull, had existed for 135 years, had provided top-quality products to the NHS since its very inception, and could not get on the VIP lane. Why was it blocked?

[Anneliese Dodds]

My hon. Friend is absolutely right. Earlier in the debate, he detailed that sorry tale in devastating manner, as did my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy). Arco had existed for 135 years, providing essential material. It was completely ignored, yet Ayanda Capital, for example—an investment firm with no PPE experience —ended up being used by the Government to purchase 50 million masks that were not even usable.

There were other companies that missed out. Multibrands International, based in Bradford, had been providing PPE to the Chinese Government since the end of 2019. It spent months trying to offer those services to the UK Government, but got absolutely nowhere. What did the Government do instead? They bought 400,000 protective gowns from Turkey that were unusable.

That is the way it always seems to be with the Conservative party: one rule for the Conservatives and their friends, another rule for everyone else—and it is the British people who pay the price. This Conservative Government are doing their best to suggest that every politician was engaged in graft. They are trying to drag everyone else down to their level and feed a growing disillusionment with our politics that damages us all. But Labour Members know that that is not true; I suspect that a fair few Conservative Members know it, too.

The people of Britain know when they are being taken for fools. When a party found guilty of breaking the rules tries to remake them to protect one of its own, there is a word for that: corruption. That is what this Prime Minister has brought into the heart of our politics, and the British people will not tolerate it. That is why the Prime Minister panicked last week and U-turned: because he knew that he had been rumbled.

We all have to play by the same rules, whatever the Prime Minister thinks. Labour has been clear that if we were in power, things would change. We would ban dodgy second jobs like those of the former Member for North Shropshire—and I mean a proper ban, not the watered-down cop-out that the Prime Minister is trying to lay down this afternoon. We would close the revolving door and ban Ministers from lobbying for at least five years after they leave office. We would stop Conservative plans to allow foreign money to flow into our politics, and ban the use of shell companies to hide the source of donations. We would create a new office for value for money and reform procurement rules to put an end to the industrial-scale wasting of public money, and we would create a new, genuinely independent integrity and ethics commission to restore the standards in public life that have been trashed by this Government.

This scandal has presented a clear choice about the kind of politics we want for our country. Do we want Boris Johnson’s politics of the gutter, or Keir Starmer’s politics of decency and integrity? Conservative Members have a choice today as well. They can abstain, under orders from the Prime Minister, their Chief Whip and the Leader of the House; or they can decide to make a stand. They can decide that they want to have a vote on this because they want to take a better path. Let us be very clear about the message that abstention is going to send. We have heard weasel words during this debate, and it seems clear that the scope of what the Government are proposing today, in terms of what they are willing to release, is far less than what Labour’s motion requires.

I see the Minister shaking her head. I sincerely hope that she has got that correct, because, having listened to what she said and compared it with what is written in the Labour motion, I think that there is far less that this Government are prepared to reveal.

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[The Parliamentary Under-Secretary of State for Health and Social Care (Maggie Throup)]

I am pleased to be able to close this debate on behalf of the Government. As my hon. Friend the Minister for Care and Mental Health said earlier, the Government are not intending to vote against the Humble Address. We will review what information we hold in scope, come back to Parliament and deposit it in the Library of the House, which is in line with the Government’s established stance on responding to Humble Addresses.

I am, however, grateful for the opportunity that we have had to address the important issues raised today: questions of how, as a country, we can rise and meet the challenges that we face, how we can ensure we have a system that is not only fast but fair, and how we can learn lessons from this most challenging period in our history. One of the most important lessons I take from it is that when we work together, we can do incredible things. We can build a testing capacity almost from scratch, we can reach millions of people in a single day, and we can save lives on a massive scale. Imagine what would have happened had we not worked with so many incredible partners to deliver these efforts—because no one can do it on their own, especially in such unprecedented circumstances, so it is the duty of a responsible Government to work with anyone who can deliver. The NHS has been phenomenal, our hospitals have been phenomenal and local government has have been phenomenal, but so have those in the private sector. We could not have come this far without them.

When we look at the situation today, it is easy to forget just how far we have come.

Back in March 2020, we could process just a few thousands of tests in a day; now we can process millions. That we have achieved this is no accident. In respect of developments from testing kits to processing, logistics to lateral flow devices, those partnerships between the NHS, industry, academia, local government and so many others have made the difference—and contracts with companies such as Randox have been some of the essential building blocks without which we would never have built what is now one of the largest testing networks in the world.

Randox laboratories have carried out over 15 million tests for covid-19. More than 730,000 positive cases have been identified under Randox contracts, which meant that those people could self-isolate, protect others, and help to bring the pandemic under control. An independent assessment gave a positive assessment of Randox’s performance. It exceeded their contract targets, hitting 120,000 tests in a single day in March 2021.

[Karl Turner]

Would the Minister like to comment on the fact that 750,000 testing kits that were put into care homes were no good at all? What has she to say about that?

[Maggie Throup]

In a statement on 18 July 2020, the Secretary of State informed the House that a batch of swab test kits were not up to the usual high standard. As a precautionary measure, they were withdrawn, and replacement kits were supplied as soon as possible.

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[Maggie Throup]

Obviously those details were in the contracts, but I am sure that they conformed with the key performance indicators.

All the contract award notices can be seen on Contracts Finder. We have nothing to hide, Madam Deputy Speaker —nothing at all. The House, and the public, can see what taxpayers’ money has been spent on. We have applied exactly the same criteria, standards and processes in the case of Randox as we have in all other cases. Randox has never been an exception, and we utterly reject the idea that it has received any kind of special treatment. Our partnership with Randox is simply a reflection of the situation in which we found ourselves in March 2020, facing a global pandemic of unknown and unprecedented proportions and acting as a responsible Government should. We worked against genuine fears that we would run out of vital testing equipment, that we would not have the capacity to test people and that the deadly virus might continue to spread from person to person, silent and undetected.

We engaged with Randox and many others. Not only was Randox a UK-based business, but its early laboratory-based PCR testing capacity for covid-19 was capacity that we have been able to use for the whole of the UK. We have fought this pandemic as one United Kingdom. Working with Randox was the right thing to do, it was the responsible thing to do and, quite simply, it was a decision that has saved many thousands of lives.

I will address one issue brought up by a couple of Opposition Members, and reassure them that Arco was awarded contracts for PPE. I thank Arco for its contribution in providing life-saving PPE that we needed at that time.

[Karl Turner]

The reality is that Arco went directly to various NHS branches to offer its services to supply. It was blocked from any formal route. It was not on the VIP list. That is the reality.

[Maggie Throup]

I reiterate that Arco was awarded contracts for PPE.

Of course, that does not mean there are no lessons to be learned, and I can reassure the hon. Member for Blackburn (Kate Hollern) that the public inquiry will be an important learning moment for us all. We are already making changes: we published our procurement Green Paper last December, we updated our commercial guidance on the management of actual and perceived conflicts of interest in May, and we are implementing the recommendations from the first and second Boardman reviews into improving procurement.

The real lessons, however, are just what we can achieve when we all get behind a shared mission, to protect the British people and to protect the NHS. That is a mission-driven way of working that has seen us work beyond the traditional boundaries and achieve remarkable results. We have tested millions of people for covid-19 and kept millions more safe. I am very proud of that, and so too, I believe, are the British people.

Question put and agreed to.

Resolved,

That an Humble Address be presented to Her Majesty, that she will be graciously pleased to give directions that there be laid before this House the minutes from or any notes of the meeting of 9 April 2020 between Lord Bethell, Owen Paterson and Randox representatives, and all correspondence, including submissions and electronic communications, addressed or copied to, or written by or on behalf of, any or all of the following:

(a) a Minister or former Minister of the Crown,

(b) a Special Adviser of such a Minister or former Minister, or

(c) a Member or former Member of this House

relating to the Government contracts for services provided by medical laboratories, awarded to Randox Laboratories Ltd. by the Department for Health and Social Care, reference tender_237869/856165 and CF-0053400D0O000000rwimUAA1, valued at £133,000,000 and £334,300,000-£346,500,000 respectively.

Royal Assent