Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 27th June 2018 Commons Chamber

[Bim Afolami (Hitchin and Harpenden) (Con)]

11. What steps his Department is taking to encourage the use of small businesses in Government procurement.

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

Small businesses are the backbone of our economy, and we are determined to continue to level the playing field so that they can compete for Government contracts. That is why in April I announced a number of measures to help achieve that and have recently met the Government’s strategic suppliers and Ministers in several Departments to ensure that those measures are delivered.

[James Duddridge]

I thank the Minister for that reply. Specifically, how will coastal towns such as Southend-on-Sea benefit from the changes in this procurement procedure?

[Oliver Dowden]

As my hon. Friend will know, small businesses generate more than 16 million jobs and we are determined to level the playing field so that those in coastal towns such as Southend get their fair share of prosperity and win Government contracts. I encourage businesses in Southend to look on Contracts Finder, on which more than 17,000 small businesses are already registered, for procurement opportunities.

[Chris Davies]

Does my hon. Friend agree that it is vital that we have a vibrant and mixed group of suppliers and small businesses from all corners of the UK, including Wales, Scotland and Northern Ireland, and that they should all be considered equally in the procurement process?

[Oliver Dowden]

My hon. Friend is absolutely correct. It is crucial to ensure that we have a diverse supplier base. We have made a number of changes to the Government procurement processes to assist small businesses, including requiring prime contractors to advertise subcontracting opportunities on the Government Contracts Finder. We also divide contracts into separate lots, including by region, when that makes commercial sense.

[Bim Afolami]

I thank the Minister for his responses. As seen from my recent work on the Public Accounts Committee, there sometimes appears to be a conflict between large strategic suppliers who see themselves as aggregators of several procurement contracts for small business and other instances in which small businesses would like to get certain contracts directly from Government. Will he explain the Government’s thinking on how to balance those two approaches?

[Oliver Dowden]

We already require buying authorities to disaggregate contracts so that small and medium-sized enterprises can compete. However, there will, of course, be contracts in which disaggregation would affect value for money. That is why we recently announced that when large contractors are successful, they will be required to advertise those subcontracting opportunities on Contracts Finder, so that small businesses can bid.

[Julie Cooper (Burnley) (Lab)]

What assessment has the Minister made of the cost implications where outsourced contracts have been overturned by the High Court because of incompetent procurement processes? I refer specifically to the expensive mess created by Conservative-controlled Lancashire County Council in connection with a Virgin contract for children’s services.

[Oliver Dowden]

As the hon. Lady will know, the Cabinet Office has extensive processes to ensure successful procuring. If she is questioning the overall purpose of procuring, I refer her to the comments made earlier by my right hon. Friend the Minister for the Cabinet Office. In addition, research shows that public authorities save at least 11% by contracting out services. That means more money for health and education.

[Mr Gregory Campbell (East Londonderry) (DUP)]

The Minister referred to small businesses as the backbone of our economy. What plans does he have over this Parliament to strengthen that backbone and increase targets in terms of accessibility of procurement for small businesses?

[Oliver Dowden]

The hon. Gentleman raises an important point. In the previous Parliament, we set and met a target of 25% of all Government procurement going to small businesses. We set a challenging target in this Parliament of a third of all procurement going to small businesses. I am taking a number of steps to help us to try to achieve that.

[Bill Esterson (Sefton Central) (Lab)]

6. Thirty thousand Carillion suppliers are owed £2 billion in unpaid invoices. When will Ministers enforce the prompt payment rules for Government contracts and stand up for small businesses, or is the reality that under this Prime Minister the Conservatives really are the anti-business party?

[Oliver Dowden]

We are absolutely committed to prompt payment. That is why the Government pay over 96% of their suppliers within 30 days. In respect of application to contracting, I have just announced a consultation to ensure we can exclude contractors if they fail to pay small businesses on time.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

4. When the Government plan to respond to the report of the Lord Speaker’s Committee on the size of the House of Lords.

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[Chris Elmore (Ogmore) (Lab)]

13. What steps he is taking to widen access to senior public appointments.

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

We want to ensure that public boards represent the people they serve. That is why in December we launched our diversity action plan, which committed to 50% women and 14% ethnic minority representation by 2020. Just last month, I appointed Lord Christopher Holmes to undertake a review of removing barriers that disabled people might face when applying for public appointments.

[Vicky Foxcroft]

What proportion of appointments made to public bodies are people from working-class backgrounds and what proportion went to private school?

[Oliver Dowden]

The hon. Lady raises a very important point about our making sure that public appointments reflect the country as a whole. That is why we have taken a number of measures to increase diversity based on the Bridge report recommendations.

[Chris Elmore]

I am sure that the Minister agrees that we have a huge amount of talent for public appointments, including in Wales, Scotland and Northern Ireland, so will he set out what he is doing to ensure that regional voices are heard around senior public appointments?

[Oliver Dowden]

The hon. Gentleman is absolutely right. Diversity means not just ethnic diversity or gender diversity, but regional diversity. That is why, for example, we recently held an event in Glasgow to encourage people in Scotland to apply for public appointments.

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

One way in which we could widen public appointments is to limit the amount of them to just two per person, instead of the gravy train that seems to appear as far as public appointments are concerned.

[Oliver Dowden]

As ever, my right hon. Friend is absolutely correct, and I take on board his recommendation. Diversity also means ensuring that we do not have the same old faces constantly applying for and succeeding in winning public appointments. That is why, as part of our diversity measures, we are encouraging a wider array of people to apply for public appointments.

[Tom Pursglove (Corby) (Con)]

Does my hon. Friend think that online abuse acts as a deterrent to people putting themselves forward not just for elected office, but for public appointments? Does he also agree that such abuse should be dealt with robustly and that we all have a responsibility to call it out?

[Oliver Dowden]

Yes, my hon. Friend is absolutely right, and we will be launching a consultation shortly to deal with exactly that point.

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

Edward Timpson was appointed chair of the Children and Family Court Advisory and Support Service and of the new Child Safeguarding Practice Review Panel. Andrew Tyrie has been appointed chair of the Competition and Markets Authority. Baroness Stowell was appointed chair of the Charity Commission. They are all probably worthy appointments individually, but a clear pattern is emerging, so will the Minister confirm that the main criteria now for senior public appointments is that someone has to be a former Tory MP or Cabinet Minister?

[Oliver Dowden]

As ever, the hon. Gentleman makes a rhetorical flourish. Sadly, the facts just do not bear it out. The Government’s code for public appointments is clear that political activity is neither a judgment of merit nor a bar to becoming a political appointee. If he looks at the statistics, he will see that of 1,000 candidates in the past year—2016-17—4.9% were Conservative and 4.8% were Labour.

[Luke Graham (Ochil and South Perthshire) (Con)]

8. What plans he has to mark National Democracy Week.

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[Faisal Rashid (Warrington South) (Lab)]

T7. Will the Minister please explain how the Government justify wasting time and taxpayers’ money on the “testing and scrutiny” of contractual arrangements, only to ignore their own highest possible risk rating for Capita and award it the fire and rescue contract?

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

As the hon. Gentleman will know, the Cabinet Office has extensive functions to ensure that we award contracts only to companies that offer the very best value, and that was exactly the case in that instance.

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

rose—

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[Andrew Bridgen (North West Leicestershire) (Con)]

T5. What recent discussions has my hon. Friend had with Cabinet colleagues about the cost to the taxpayer of public sector workers’ taking trade union facility time?

[Oliver Dowden]

My hon. Friend is absolutely right. For too long, unions in the public sector have received taxpayer funding for an activity that is inadequately controlled and poor value for money, which is why we are introducing transparency in respect of facility time. We believe that proper management could save our taxpayers up to £100 million.

[Diana Johnson (Kingston upon Hull North) (Lab)]

The anniversary of the Prime Minister’s announcement of a public inquiry into contaminated blood is fast approaching. Can we expect a statement in the House to say that the terms of reference have finally been agreed and the public inquiry can get on with its work?

[Richard Drax (South Dorset) (Con)]

T8. What reassurance can my hon. Friend give that Departments will work together to deliver our ambitious plans to create more jobs and prosperity in Weymouth and on the Isle of Portland in the years ahead?

[Oliver Dowden]

Departments across the Government are committed to working with local partners in Weymouth and Portland to build jobs and prosperity. In July, representatives of a range of Departments will visit local partners to see for themselves the enormous opportunities that exist in the area, and to identify how Government policies and programmes could help to support their ambitions.

The Prime Minister was asked—