Oral Answers to Questions

Debate between Oliver Letwin and Michael Ellis

Wednesday 24th November 2010 Commons Chamber

[Mr Letwin]

The right hon. Gentleman is well aware that more than three quarters of charities receive no Government money, and therefore will not be affected. He ignores the opportunities presented by the new public service reforms. The Work programme, for example, is creating huge opportunities for the voluntary and community sector, and there will be increased funds from that source. There will be more funds for drug prevention, rehabilitation and recovery, and for the rehabilitation of prisoners. Payment-by-results contracts will be available for a huge range of new voluntary and community sector operators. I expect the right hon. Gentleman to see an expansion, not a reduction, in the sector and its activities.

[Michael Ellis (Northampton North) (Con)]

5. What plans he has to encourage opportunities for small and medium-sized enterprises to apply for Government contracts.

--- Later in debate ---

[The Minister of State, Cabinet Office (Mr Oliver Letwin)]

On 1 November, my right hon. Friend the Minister for the Cabinet Office announced a package of measures to help small and medium-sized enterprises to obtain public sector contracts. They include halving the length and breadth of the pre-qualification process for small firms, and creating a single website called Contracts Finder, where small businesses can locate all the contracts that are available from Government.

[Michael Ellis]

Given that 95% of people in my constituency are employed by small and medium-sized enterprises and that some companies would relish the opportunity of a fair playing field in bidding for Government contracts, will my right hon. Friend make suitable changes to the bureaucratic burden that they currently bear, thanks to the previous Government, as soon as possible?

[Mr Letwin]

The short answer is yes—and abundantly so. The measures I just described are intended to do that. In addition, we are looking at the causes of delay in the procurement process because, as was mentioned earlier, that is often part of the problem. We are also requiring suppliers to pay their subcontractors within 30 days, and encouraging them to pass those payments right down the line to the smallest businesses.