Medical Devices and Equipment

Lord Hunt of Kings Heath Excerpts

Monday 20th March 2023 Lords Chamber

[Lord Evans of Rainow (Con)]

The noble Baroness raises an important point. As it is outside the Question and the remit I have here, I cannot give her a robust enough answer, I fear, so I will write to her.

[Lord Hunt of Kings Heath (Lab)]

My Lords, surely at the heart of this Question—and it relates to China—is that what we learned during the pandemic is that we were overreliant on supplies from China. The Government say that they wish to encourage alternative sources of supply, including from UK companies. However, we hear from those companies that the cost pressure on them means that they cannot invest sufficiently to produce alternative sources of supply. What is the Government’s approach to ensuring that we are not dependent on China in the way that left us so exposed during the pandemic?

[Lord Evans of Rainow (Con)]

The noble Lord raises an important point. Unfortunately, we were far more reliant on China, not just in the NHS but elsewhere in our economy. However, contracts and framework agreements fixed prices to provide budgetary certainty for the NHS and to avoid the need for frequent price reviews or constant retendering, which are inefficient for the NHS and for suppliers. When I reflect on my business career, I know from that context that the NHS is a very good customer, providing security on payment for goods and services, working under equitable terms and conditions of contract, and being prepared to encourage the concerns of suppliers facing exceptional pressures. It is a very good customer.