Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 6th February 2019 Commons Chamber

[Chris Green (Bolton West) (Con)]

1. What steps he is taking to encourage the use of innovative technologies to improve the delivery of public services.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

Last month I announced five new public sector challenges, to be funded from the £20 million GovTech innovation fund. In the spring we will publish a strategy for the use of innovation in public services.

[Chris Green]

Can my hon. Friend confirm that the GovTech fund is being used to identify technologies with the potential to improve medical care and deliver better services at a lower cost?

[Oliver Dowden]

I am delighted to confirm that to my hon. Friend. There is huge potential here for improvement in public services. So far the GovTech Catalyst has funded two health-related challenges: the first seeks to improve the medication pathway for people entering custody, and the second will assess how machine learning could improve prediction and provision in relation to adult social care.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

At the weekend, 70 Labour MPs and Members of the European Parliament signed my letter to the Government asking them to review the operation of the EU settled status app for EU citizens, which is currently available only on Android phones and not on iPhones. What advice does the Cabinet Office gives other Departments to ensure that no digital discrimination is embedded in the new technologies that the Government are rolling out?

[Oliver Dowden]

The hon. Gentleman is right to raise the question of the digital verification system. It is perfectly possible to subscribe to it with any phone. The issue relates to the document verification, which can be carried out in respect of Android phones but not, currently, in respect of Apple phones. However, the Home Office is working on that as we speak.

[Scott Mann (North Cornwall) (Con)]

I know the Minister will be aware that delivering public services in rural areas is particularly challenging. Will he consider how he could use tech and innovation to facilitate better public services in areas such as those that I represent?

[Oliver Dowden]

My hon. Friend is absolutely right. One of the great aspects of the GovTech challenge fund is that it is often used in rural areas. In rural Scotland, for example, we are looking into how it could be used to help to ensure that the environment is properly managed, and we are working on other similar schemes.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Time and again, Mr Speaker, you have heard me raise the issue of deeply unsatisfactory broadband coverage in my constituency, which greatly impairs the delivery of vital public services. Responding to a question that I asked not long ago, the Prime Minister mentioned the shared prosperity fund. Might that fund be used to tackle the problem of very poor broadband coverage? If the Minister cannot give me an answer now, will he agree to meet me to discuss the issue?

[Oliver Dowden]

I am always happy to meet all Members, and I have heard the hon. Gentleman’s representation in respect of the shared prosperity fund. Our industrial strategy has already committed us to spending more than £1 billion on digital infrastructure, including £176 million on 5G and £200 million on broadband for local areas. There is, I know, an issue with the Scottish National party Government getting the money to the frontline, which is why my right hon. Friend the Culture Secretary has announced that in future, money will go directly to councils.

[Jo Platt (Leigh) (Lab/Co-op)]

When it comes to the delivery of technology with the use of public money, we know whose side the Government are on: their mates in the megafirms. Their spending on Cloud provision with just one company, Amazon Web Services, has increased by 8,000% since 2015. The next time the Minister signs off another multimillion-pound tech contract, will he perhaps spare a thought for one of the UK’s incredible small and medium-sized enterprises?

[Oliver Dowden]

The Government are committed to ensuring that SMEs win their fair share of Government contracts. Unlike the Labour Government, this Government have set the target of devoting a third of all spending to SMEs. However, the hon. Lady rightly raised the issue of Amazon Web Services. Let us look at the figures. AWS is a G-Cloud supplier. A total of £3.2 billion has been spent on G-Cloud. How much has been spent on AWS? Just £70 million, which amounts to less than 2.2% of total spending.

[Mohammad Yasin (Bedford) (Lab)]

2. What recent progress his Department has made on its proposed changes to public sector procurement.

[Oliver Dowden]

We are determined to deliver value for money for taxpayers through better procurement, and to support a healthy and diverse supply market. We recently announced measures including simplifying procurement processes, taking account of social value when awarding contracts, and excluding large suppliers from Government contracts if they cannot demonstrate prompt payment.

[Mohammad Yasin]

I thank the Minister for his answer. The number of businesses receiving late payments from the Cabinet Office has nearly tripled in the past two years. Does the Minister agree that this makes a mockery of the Government’s plans to crack down on public sector suppliers who pay late?

[Oliver Dowden]

Prompt payment is important to all businesses, particularly small businesses. That is why we have set a target for 90% of undisputed invoices from small and medium-sized enterprises to be paid within five days. We are making good progress, and six Departments are already exceeding that target. I know that there has been an issue in respect of the Cabinet Office, but I can give the hon. Gentleman the latest figures, from December, which show that 95% of invoices are now meeting the 30-day target and that 82% are meeting the five-day target.

[Greg Hands (Chelsea and Fulham) (Con)]

Will the Minister join me in welcoming moves to roll over the WTO Agreement on Government Procurement—the GPA—and in welcoming the access that that would give to UK companies competing abroad and the opening up of our own markets to foreign competitors?

[Oliver Dowden]

I know that my right hon. Friend has a great deal of experience in this area, and he is absolutely right to highlight the importance of the GPA. I am pleased that we have made progress and reached agreement in principle for the United Kingdom to join the GPA, and I am confident that we will have that in place shortly.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Is not the Minister guilty of a bit of jiggery-pokery? [Hon. Members: “Oh!”] The fact of the matter is that if the Government looked at good examples such as Huddersfield University and Kirklees Council, they would see the way in which they emphasise local and regional procurement, which brings in jobs and wealth and retains them in our communities. Why do this Government not do the same?

[Oliver Dowden]

We are absolutely committed to ensuring that we get the very best suppliers, which is why we have introduced a balanced scorecard approach. That allows suppliers to take into account a wide range of factors, including environmental factors and factors relating to the quality of produce. Those are the sort of reforms that this Government are committed to introducing.

[James Gray (North Wiltshire) (Con)]

The Government give a very welcome emphasis to the employing of small and medium-sized enterprises in Government contracts, and that is very good stuff, but does the Minister not agree that in reality, Government procurement processes are so complex, so difficult, so massive and so expensive that it is actually companies such as the defence primes that get the contracts and then hammer down the prices they pay to their subcontractors? How can we find better ways to ensure that SMEs win some of those valuable contracts?

[Oliver Dowden]

My hon. Friend is absolutely right to highlight the issue of SMEs winning contracts. This is why we have abolished complex pre-qualification questionnaires on small-value contracts, for example, and in November I announced that if major strategic suppliers were not paying their small providers on time, they could face being excluded from Government contracts.

[Tommy Sheppard (Edinburgh East) (SNP)]

I am aware that current statute means that wage rates cannot be mandated, but it is possible to use the procurement process to encourage employers to consider paying the real living wage in the context of fair work policies. Indeed, that is the process undertaken by the Scottish Government. Will the Minister consider following Scotland’s lead and using procurement to ensure that employers pay the real living wage?

[Oliver Dowden]

I thank the hon. Gentleman for his question. I hope that he will acknowledge the progress that this Government have made in introducing a national living wage for the first time. The effect of that national living wage, which will rise by almost 5% this April, is that an average person working full time on the national living wage will be almost £3,000 a year better off—and that is not counting the massive increase in the personal allowance that also cuts their taxes.

[Christian Matheson (City of Chester) (Lab)]

Of course, it is not a living wage; it is just a minimum wage re-badged.

The Government have repeatedly insisted that Interserve’s

“current intentions are a matter for the company itself.”

However, it emerged last night that Cabinet Office officials were playing an active role in talks to negotiate a rescue package. It seems that the Government cannot make up their mind whether they have a responsibility to intervene and protect public services and jobs or whether to let the market decide, so which is it?

[Oliver Dowden]

The Government are absolutely clear that their principal task is to ensure the continued delivery of public services, and that is what we have ensured in respect of our strategic suppliers. The hon. Gentleman raises the case of Interserve. I welcome this morning’s announcement, which I am sure he has seen, which demonstrates that it is making good progress towards refinancing, but we are clear that that is a matter between the lenders to that company and the company itself. The Government are not a party to those negotiations.

[Daniel Zeichner (Cambridge) (Lab)]

3. What assessment he has made of the implications for his Department's policies of the Information Commissioner’s January 2019 report, “Outsourcing oversight? The case for reforming access to information law”.