Covid-19: PPE Procurement

Lindsay Hoyle Excerpts

Thursday 24th November 2022 Commons Chamber

[Mr Speaker]

I remind all Members that “Erskine May” states that the conduct of Members of the House of Lords can only be criticised on a substantive motion, and therefore not during these exchanges. Also, as there is the prospect of further legal proceedings concerning some of the contracts entered into, I remind Members of the sub judice resolution and the requirement not to refer to live cases.

--- Later in debate ---

[Angela Rayner]

Thank you for granting this urgent question, Mr Speaker. I welcome the Minister to his place—I think this is the first time we have met at the Dispatch Box—but to be honest, to his defence of due diligence I would say, “What due diligence?” Last night, documents seen by The Guardian revealed yet another case of taxpayers’ money being wasted, with a total failure of due diligence and a conflict of interest at the heart of Government procurement.

In May 2020, PPE Medpro was set up and given £203 million in Government contracts after a referral from a Tory peer. It now appears that tens of millions of pounds of that money ended up in offshore accounts connected to the individuals involved—profits made possible through the company’s personal connections to Ministers and the Tories’ VIP lane, which was declared illegal by the High Court. Yet Ministers are still refusing to publish correspondence relating to the award of the Medpro contract, because they say that the Department is engaged in a mediation process. Can the Minister tell us today whether that mediation process has reached any outcome, and what public funds have been recovered, if any? Will he commit to releasing all the records, both to the covid-19 public inquiry and to this House, once the process is completed?

Rightly, there are separate investigations into Baroness Mone’s conduct, but the questions that this case raises are far wider. It took a motion from the Opposition to force the Government to release records over the Randox scandal. Will they agree today to do the same in this case without being forced to do so by the House? Can the Minister say now what due diligence was performed when awarding the Medpro contract?

Today’s reports concern just one single case, but this Government have written off £10 billion just on PPE that was deemed unfit for use, unusable, overpriced or undelivered. Worse, Ministers appear to have learned no lessons and to have no shame. As families struggle to make ends meet, taxpayers spend £700,000 a day on the storage of inadequate PPE. Can the Minister confirm whether the Government’s new Procurement Bill will still give Ministers free rein to hand out billions of pounds of taxpayers’ cash all over again?

[Mr Speaker]

Order. Can we please stick to the rules of the House on time limits? I do not make the rules; the rules are meant for us all. This is happening too often.

[Neil O’Brien]

The right hon. Lady asks two main questions, the first of which is what we are doing on PPE Medpro. It has been widely reported that it had an underperforming contract. Let me set out what we do in such cases. The first step is to send a letter before action, which outlines a claim for damages. That is followed by litigation in the event that a satisfactory agreement has not been reached. To answer the right hon. Lady’s question directly, we have not got to the point where a satisfactory agreement has been reached at this stage.

On the high-priority group, let us be clear about what it was and what it was not. Approximately 9,000 people came forward. All Ministers will have had the experience of endless people ringing them up directly to try to help with the huge need that there was at the time. Many of us, as Back Benchers, will have been approached by constituents who were keen to help and needed to be referred somewhere. All that the route did was handle the huge number of contacts coming in to Ministers from people offering to help. Let me be clear that it did not give any kind of successful guarantee of a contract; indeed, 90% of the bids that went through it were not successful. Every single bid that went through the route went through exactly the same eight-stage process as all the other contracts—it looked at the quality, the price and the bona fides of the people offering to produce.

On the point about PPE that has not been useful, I set out in my answer the extraordinary context in which we were operating. There was a global scramble for PPE. People were being gazumped: goods would be taken out of the warehouse if people could turn up with the cash quicker than them. It was an extraordinary situation in which we had to act in a different way. Loads of us will remember standing up in this House and saying to Ministers, “What are you doing to get more? More, quickly!” That was the context in which we were operating.

[Neil O'Brien]

That was the underperforming contract that I referred to in my previous answer, and I set out the process that we go through when we take action on underperforming contracts. There is the initial letter before action, and then a process in which we look to see if a satisfactory agreement can be reached. If not, that leads on to litigation. Of course, there was wasted PPE—my hon. Friend is absolutely correct about that—but I have already set out the context of the global scramble and the huge amount of PPE that was successfully delivered, saving lives and protecting workers in our NHS.

[Mr Speaker]

I call the SNP spokesperson.

[Brendan O'Hara (Argyll and Bute) (SNP)]

From the moment we learned about the existence of this VIP lane for the politically connected, it was almost inevitable that it would come to this. This get-rich-quick scheme to fast-track cronies, politically connected pals and colleagues was never going to end well. I suspect that today’s revelations, however shocking, are simply the tip of a very large iceberg—an iceberg that could yet sink this ship of fools.

Transparency International UK has flagged as a corruption risk 20% of the £15 billion given out by the Tories in PPE contracts at the height of the pandemic. As we have already heard, they are spending £770,000 every single day to store much of that useless equipment in China. One Tory politician who had absolutely no background in PPE procurement personally made millions from those contracts, so do the Government plan to investigate proactively how many others like that are in their ranks, or are they content to sit there and watch this dripping roast of sleaze, corruption and scandal unfold on its own?

[Mr Peter Bone (Wellingborough) (Con)]

I think there is a little rewriting of history here. At one stage in the pandemic, getting PPE was the most important thing, and I remember Members on both sides demanding quicker action from the Government. The Minister has explained the situation fully, and I regret that the Opposition are making political points from what was actually a great success in protecting our NHS staff. Does the Minister agree with me or with that lot?

[Mr Speaker]

I suspect he might agree with the hon. Gentleman.

[Neil O'Brien]

My hon. Friend is completely correct. Some have short memories. Many of us stood up in this House to chivvy Ministers, asking, “Why aren’t you going faster? Why don’t you do more? Take the risks, get the stuff—we need it.” That was the priority. Many Members want it both ways: they criticised us at the time for not going fast enough or taking enough risks, and now they do not accept that we are going through all the contracts that did not perform.

--- Later in debate ---

[Neil O'Brien]

My hon. Friend is completely correct. When Mrs Justice O’Farrell went through these cases, she noted in her summing up that given the time-sensitive nature of the work, it was not irrational for the Department to decide that it was prepared to take more risk than usually would be acceptable, because of that extraordinary context that is so quickly forgotten in the questions we are hearing in the House today.

[Mr Speaker]

On her birthday, I call Christine Jardine.

[Christine Jardine (Edinburgh West) (LD)]

The Minister has made much of the context of the time and the speed and the calls for PPE, but what my and, I am sure, everybody else’s constituents wanted was PPE quickly and appropriately. Earlier this year the High Court ruled that the Government’s VIP lanes were not only inappropriate, but unlawful, and in breach of the obligation of equal treatment. Does the Minister appreciate that constituents across the country are calling for an explanation? Will he back the Liberal Democrat amendment to ban VIP lanes for all future Government contracts?

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

The Minister says that lessons will be learned about Government procurement from this PPE scandal. Will he look at the contracts that the Home Office has for accommodating and feeding asylum seekers, which are ripping off the hotels and the food suppliers, causing asylum seekers to live in malnutrition and squalor? These contracts have many of the same characteristics—vast profits and executive salaries, and an opaque network of subcontractors run by people who may not pass fit-and-proper tests—

[Mr Speaker]

Order. I think the hon. Lady is stretching things a bit too far. [Interruption.] I know it is lessons learned, but it is too clever and not clever enough. We will leave it at that.

[Sam Tarry (Ilford South) (Lab)]

Today’s revelations show further evidence that the Government’s VIP lane was possibly criminal and was exploited by Members of the Government party. Will the Minister today commit to publishing in full the names of the Ministers, MPs or officials who referred firms on to that fast-track lane? Stop being evasive. We need to know what corruption happened.