Emergency Covid Contracts

Lindsay Hoyle Excerpts

Tuesday 29th June 2021 Commons Chamber

[The Parliamentary Secretary, Cabinet Office (Julia Lopez)]

Urgent questions are appearing like buses for me this week.

I am grateful for the chance to address the House about the Government’s use of emergency covid contracts. I have previously responded to debates on this issue with as much detail and candour as I have been able to provide as someone who came to this brief last June and who has tried subsequently to understand what happened in the early months of the pandemic.

The right hon. Member for Ross, Skye and Lochaber (Ian Blackford) will know that all corners of our country have worked together to tackle covid. The public have all too often seen division between different regional authorities but, in truth, close collaboration with the devolved Administrations has been at the heart of our pandemic response, enabling swift policy action such as the roll-out of the vaccine programme UK-wide, the furlough scheme and a rapid increase in testing capacity.

At the beginning of the pandemic, over 13 million items of personal protective equipment were distributed to the devolved Administrations. Throughout the pandemic, the UK Government and the devolved Administrations have worked side by side on sourcing and supply of PPE such as FFP3 masks, and they continue to work together on meeting future demands on frontline staff. The existing procurement rules rightly allow the Government to procure at speed at times of emergency under the Public Contracts Regulations 2015. The rules predate covid-19, and there was no need for suspension or relaxation in order for them to be used. None the less, I understand and welcome questions that right hon. and hon. Members have about covid contracts, because how we spend taxpayers’ money matters very deeply to public trust.

It is true to say that the Government faced a number of challenges at the height of the pandemic, and we should be open about those. It is incumbent on all of us to understand not only the kinds of pressures that were on the system, but some of the shortcomings that desperately need to be addressed. That being the case, the Government are already adapting their commercial guidance and work. Following the first, independent Boardman review of procurement processes, looking at a small number of contracts in the Government Communication Service, 24 out of 28 recommendations have already been implemented, and the remainder will be met by the end of the calendar year. Following the second, wider Boardman review, which looked at PPE, ventilators, test and trace, vaccines and food parcels across Government, 28 further recommended improvements were identified, and progress on those is under way. Our Green Paper on transforming public procurement also sets out proposals to update the rules on procuring in times of extreme emergency or crisis.

Let me also briefly address the issue of Government polling during the pandemic. The Government regularly undertake research to support policy development, which includes work related to the impact of covid in areas across the UK. It is the sign of a responsible Government to understand the public’s views on how best to keep people safe to recover from the pandemic and to ensure that we will continue to deliver for all parts of the United Kingdom.

[Mr Speaker]

I call Ian Blackford, who has got two minutes.

[Ian Blackford]

Thank you, Mr Speaker, for granting this urgent question. I welcome the Minister to her place; it is the first time I have appeared opposite her.

After the revelations and resignations at the weekend, this urgent question concerns yet another scandal at the very heart of this Tory Government. It seems that not even a health pandemic can do away with classic Tory cronyism, and the scale of this particular scandal makes it one of the biggest yet.

The Secretary of State ordered the use of a £560,000 emergency covid contract to conduct constitutional campaigning on the Union. Instead of using an emergency covid contract to order PPE for the NHS, the Minister chose to order political polling. This is not media speculation, and it is not even a political accusation. It is, Mr Speaker, a plain fact. It comes directly from official evidence that has been published in the High Court. It comes in evidence from the Cabinet Office, in a witness statement dated 24 December 2020, which states:

“I...received an urgent request for Union-related research from the office of the Rt Hon Michael Gove...In response, I asked Public First to conduct some testing of people’s attitudes”

on this issue.

Did the Prime Minister know or approve of that polling and constitutional campaigning? Who were the polling results shared with, and will they be published in full? How many other pieces of political research were ordered during the pandemic, and exactly how much public money has been spent? These are just some of the questions that the Secretary of State needs to answer. There are many, many more.

The Secretary of State was in Scotland yesterday. He held a press conference. He told Greg Russell of The National newspaper:

“We don’t use taxpayer funds for party political polling”.

He went on to claim that the contract was assigned by others. We know from the witness statement that these things are not true. The truth and this Government are distant strangers, and that should come as no surprise when we remember the Prime Minister has been sacked not once but twice for lying.

[Ian Blackford]

Last Wednesday at Prime Minister’s questions, the Prime Minister said he was unaware of these contracts, and ever since he has ignored demands for a full—

[Mr Speaker]

Order. A serious allegation about somebody lying will have to be withdrawn—as we know, hon. Members would never lie. I am sure we would like to think about the language being used, because I am not convinced about the proof of that. I think we should withdraw the word “lie”.

[Ian Blackford]

I have been very careful with my language, Mr Speaker, and I am pointing out the contradiction between the witness—

[Mr Speaker]

Order. [Interruption.] Order. Mr Blackford, please. You cannot criticise another Member such as the Prime Minister without a substantive motion. That is not what has been granted. The language we use is important for me to keep good order, and I am sure you could reflect on the words about another Member, who I presume has also been given notice of any criticism.

[Ian Blackford]

Indeed, I am relying on matters of fact, Mr Speaker. Just as the Prime Minister failed to act and sack his Health Secretary, he has failed to act on this scandal, too. But no matter how hard they might try to sweep this under the carpet, this scandal is not going away. This morning I have written to the Cabinet Secretary, urging him to launch—

[Mr Speaker]

Order. We are now one minute over the time that I granted. I hope the right hon. Gentleman is now going to end in the next seconds.

[Ian Blackford]

This morning I have written to the Cabinet Secretary urging him to launch an independent investigation into this blatant misuse of public money for political purposes. So finally, if this UK Government have nothing to hide, will the Minister join me in supporting that investigation by the Cabinet Secretary, and will she co-operate with it?

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[Mr Speaker]

Order. I am trying to listen. Minister, carry on.

[Julia Lopez]

The Government regularly conduct research in every part of the UK to support policy development. In this case, we were testing public attitudes relating to the covid-19 pandemic. This became particularly relevant as different regions of the UK began to diverge in their approach to tackling covid, and that created understandable confusion.

Focus groups, which were conducted by Public First but commissioned by the national resilience communications hub, looked at attitudes towards the virus, upcoming recovery and the wider context in which to interpret the results, and the results were shared with relevant policy and communications teams. They were involved in developing and delivering covid policy and communications across the devolved Administrations, enabling them to differentiate their content and messages as appropriate. We do not plan to publish the full results of the polling and focus groups that have been used to inform ongoing policy formulation. However, we regularly review all the data we collect, and we intend to publish the elements that are not sensitive in due course.

Separately, the Cabinet Office carries out polling on attitudes towards the Union on a regular basis, but this work was paused during the coronavirus crisis. We are aware that the Scottish Government also conducted polling on attitudes in relation to covid. We did not see this research, nor would we expect to. The Secretary of State for Scotland has already addressed some of the questions that the right hon. Gentleman has raised online on his Twitter account.

Finally, to return to the judgment on Public First at the recent court hearing, that judgment found in favour of the Government on two grounds, which were emergency award and contract terms, including length. It was recognised that

“everyone involved was acting under immense pressure and the urgency of the…crisis did not allow time for reflection. The time constraints justified…derogation from the usual procedures required under PCR 2015. But they did not exonerate the Defendant from conducting the procurement so as to demonstrate a fair and impartial process of selection.”

We have already recognised that there was an issue of process, where we could do much better. That is why we investigated what had happened to prepare for the court case. We launched an internal independent review—the subsequent Boardman review—which is published in full online. We have taken forward its recommendations in full, and have nearly delivered all of them. A steering group, chaired by our chief financial officer, has been tracking implementation.

I hope that the right hon. Gentleman feels reassured by my answers. I look forward to continued collaboration with the Scottish Government to the benefit of citizens across our Union.

[Mr Richard Holden (North West Durham) (Con)]

Against unprecedented global demand for vital equipment, the UK Government secured over 32 billion items of PPE, including for our devolved Administrations. Also against the odds, and against the desire of some on the Opposition Benches who wished to remain in the EU vaccine programme, the UK again successfully secured a world-leading programme. The marketing budget for the vaccine programme was just 0.07% of the budget. Sensibly, it included work to ensure that messaging had the maximum impact in all parts of the United Kingdom to save as many lives as possible. This was rightly done at pace, and should this not be celebrated, rather than be used as a party political point-scoring urgent question by the Opposition SNP?

[Mr Speaker]

I think there is a question there!

[Julia Lopez]

I thank my hon. Friend for pointing out just how fantastic the co-operation has been between all parts of our United Kingdom. The UK Government have provided huge support to the Scottish Government and other devolved Administrations—that comes in testing capacity; we have helped with PPE; we have obviously helped with the furlough scheme—and, as he says, that should be celebrated, not denigrated.

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[Fay Jones (Brecon and Radnorshire) (Con)]

With nothing better to do, the Opposition continue to sensationalise the details surrounding a handful of high-value contracts that were subject to the emergency procurement procedures at the outset of the pandemic. Can my hon. Friend confirm that the Government are committed to transparency surrounding the use of taxpayers’ money and that all new contracts over £10,000 are published online for anybody who wishes to see them?

[Mr Speaker]

Order. Can I just say that it is my decision to grant a UQ? You are now questioning my judgment, and I am not going to have my judgment questioned.

The other thing to say is that I do feel sorry for the Minister being set up. I am sorry that Minister Gove was not here to take some of the questions, because most of them are named for him, but this House will not be taken for granted. When statements continue to be made outside the House, I will continue to grant UQs, so let’s get used to it. If the Government do not want to come here, I will ensure that they are heard here.

[Julia Lopez]

Thank you, Mr Speaker; I appreciate your zeal and I think you are right.

I thank my hon. Friend for her question. We have tried throughout to be transparent, but I have set out some of the very good reasons why it has been difficult sometimes to publish the contracts in a timely way. This has been a very complex process where we have had to surge teams at very short notice and go back through all the paperwork, looking across different IT systems across different Departments. That has been a challenge that I have tried to address, as has the Department of Health and Social Care. My understanding is that all PPE contracts are now transparently published. We are working through them all in relation to comms and have a programme of work under way to make sure that we have transparent publication. I completely agree that it is important that we offer reassurances to the public on how taxpayers’ funds are used.

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[Julia Lopez]

My hon. Friend is right that the devolved Administrations also use regulation 32 to procure in an emergency. It is important to note that the Government are dissatisfied with the procedures at our disposal. That is why, in our procurement Green Paper, we are looking at what measures we can take to procure with greater transparency and success in times of crisis to give us a better option between a full-fat procurement, which takes too long, or a direct award, which raises concerns about transparency.

[Mr Speaker]

Let us go to Liz Saville Roberts.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC) [V]]

Diolch yn fawr, Llefarydd. Let us call this out for what it is: a gross misuse of public money. The shady deal to award a half-a-million-pound covid contract to Ministers’ friends at Public First is yet another example of Tories putting Tory interests first. Given that focus groups were held in Wales, did the Secretary of State for Wales consent to the decision to use the Public First contract for political research purposes?

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[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba) [V]]

Last week at the Dispatch Box, the Under-Secretary of State for International Trade, the hon. Member for North East Hampshire (Mr Jayawardena), bragged that the Government were

“unleashing the potential of our whole country”—

countries—

“by backing British industry”—[Official Report, 21 June 2021; Vol. 697, c. 672-673.]

He derided China for “trade-distorting practices” and dismissed trade deals with China. That all sounds good, except it is just not true. Today in a covid briefing, the Government’s position on the US Food and Drug Agency judgment that the Innova tests were deadly was that it is down to an overreliance on the manufacturer’s data, and that the tests are being tested at Porton Down to disprove the Chinese manufacturer’s own data that they are unsafe. All the while, the UK diagnostic industry across the countries of the UK have been utterly betrayed. Can the Minister tell me: why are this Government using trade-distorting practices to prop up discredited Innova lateral flow devices made on the cheap in China but at massive expense to the UK? Why are UK diagnostic contracts and the hundreds of jobs that Lord Bethell—

[Mr Speaker]

I think the Minister has got the question; come on, Minister.

[Neale Hanvey]

indicated dissent.

[Mr Speaker]

The hon. Gentleman may shake his head or his hands, but he ought to realise that Members have the right to be heard, and not just him for the length of time that he thinks is appropriate; I will make the decision on that.

[Julia Lopez]

I am enjoying your zest today, Mr Speaker.

The hon. Gentleman raised with me the importance of onshore manufacturing capacity in Westminster Hall last week. I have asked for a briefing on the issue and shall get back to him, because he raised an important issue about the extent to which we have key manufacturing capacity in this country. Project Defend in the Department for International Trade aims to ensure that we have the capacity that we need.

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[Angela Rayner]

On a point of order, Mr Speaker. In the last 24 hours, we have had two urgent questions; the Minister for the Cabinet Office has not appeared, although the Parliamentary Secretary, Cabinet Office, the hon. Member for Hornchurch and Upminster (Julia Lopez), has done her best. In the last hour, we have heard media reports that No. 10 has confirmed that Lord Bethell used his private email address in regard to procurement. I seek your advice as to how we get clarity on this matter, because there have been misleading reports over the last 24 hours. How can we get an independent inquiry so that we actually get to the facts of the case?

[Mr Speaker]

Obviously, I am not aware of what has just been announced. If we are going to criticise, there needs to be a substantive motion, but the right hon. Lady is asking about the internal arrangements. Her point is now on the record; I hope that people have been listening to her request. We will take it from there. I am sure that this will not be the end of the matter being raised. I know that she will use her best endeavours and offices to ensure that the issue continues to be addressed.

We are going to suspend the House for two minutes so that the necessary arrangements can be made before the next business.