Covid-19: Government’s Publication of Contracts

Debate between Rachel Reeves and Edward Argar

Tuesday 9th March 2021 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

(Urgent Question): To ask the Chancellor of the Duchy of Lancaster, if he will make a statement on the recent court order regarding the Government’s publication of contracts during the covid-19 pandemic.

[The Minister for Health (Edward Argar)]

Although I am not the Chancellor of the Duchy of Lancaster, I hope the hon. Lady will none the less allow me to respond to her urgent question.

The first duty of any Government in a crisis is protecting their citizens, so our work to provide personal protective equipment was a critical part of our response. It was a herculean effort that involved setting up a new logistics network from scratch and expanding our PPE supply chain from 226 NHS trusts in England to more than 58,000 different settings. Our team has been working night and day on this vital national effort, and I can update the House that we have now delivered more than 8.8 billion items of PPE to those who need it. That work was taking place at a time when global demand was greater than ever before and rapid action was required, so we had to work at an unprecedented pace to get supplies to our frontline and the public.

Two weeks ago, in response to an urgent question from the hon. Lady, I updated the House on the initial High Court ruling. I will not set out that judgment at length once again, save to say that the case looked not at the awarding of the contracts, but rather at the delays in publishing the details of them as we responded to one of the greatest threats to public health that this country has ever seen. The hon. Lady’s question refers to a short declaratory judgment handed down subsequent to the original judgment in this matter, which makes a formal order as to the Government’s compliance with the relevant regulatory rules.

As before, I reiterate that we of course take the judgment of the Court very seriously and respect it. We have always been clear that transparency is vital, and the Court itself has found that there was no deliberate policy to delay publication. The fight against covid-19 is ongoing. As would be expected, we are agreeing new contracts as part of that fight all the time, and we will keep publishing details of them as we move forward.

I care passionately about transparency, and so does everyone in my Department. We will of course continue to look at how we can improve our response while we tackle one of the greatest threats to our public health that this nation has ever seen.

[Rachel Reeves]

This question and the answers to it really matter because our frontline workers were not adequately protected with the high-quality PPE that they needed during the pandemic. They matter because it is essential that taxpayers’ money is spent effectively and fairly, not handed out to those who happen to have close links with the party of government.

The Government ran down the PPE stockpile ahead of the pandemic, and that came back to haunt us when we needed it most. Contracts were handed out—many to friends of and donors linked to the Conservative party —without any transparency. The Good Law Project took the Government to court, and on 19 February the High Court ruled that the Government had acted unlawfully, saying:

“The public were entitled to see who this money was going to, what it was being spent on and how the…contracts were awarded.”

Three days later, in this House, the Prime Minister said that

“the contracts are there on the record for everybody to see”—[Official Report, 22 February 2021; Vol. 689, c. 638.]

But they are not. A judge confirmed through a court order last Friday that 100 contracts are still to be published. Will the Minister now take this opportunity to apologise for that statement and to put the record straight? Will the Government now finally agree to publish all 100 outstanding contracts by the end of this week?

For contracts that have failed, will the Minister tell us how much money has been and will be clawed back for taxpayers? Can he tell us which businesses were in the VIP fast lane for getting Government contracts and how they got there? Finally, can he honestly tell our brilliant NHS nurses, now facing a pay cut, that the Government have not wasted a single penny of their money on this curious incident of the missing contracts?

[Edward Argar]

It is a pleasure to be opposite the hon. Lady once again at the Dispatch Box—two weeks after we were last here. I will do my best to answer the questions she raised, not just for my own Department, but more broadly across Government.

The hon. Lady raised a number of points. She is absolutely right to say that transparency matters, because transparency of procurement and transparency in Government is one of the foundations of the trust that is so vital to our democracy. That is why we are working flat out to ensure that, as new contracts are awarded, the contract award notices and other relevant pieces of information are published in line with the requirements of regulations.

What is most important, though, is to recognise the situation that we faced last year, with rising infection rates, rising hospitalisation rates and the need to do everything we could—to “strain every sinew”, to quote one of the hon. Lady’s letters to the Chancellor of the Duchy of Lancaster at the time—to make sure we got those working flat out on the frontline what they needed to keep them safe. I pay tribute to the officials in my Department, who did exactly that: they focused on getting what was needed in bulk in an incredibly challenging global market, to make sure that PPE did not run out.

The hon. Lady quite rightly quoted the judgment, and I will quote paragraph 149 of the judgment—the original judgment, not the supplementary judgment. The judge, Mr Justice Chamberlain, stated that

“the overall picture shows the Secretary of State moving close to complete compliance. The evidence as a whole suggests that the backlog arose largely in the first few months of the pandemic and that officials began to bear down on it during the autumn of 2020.”

I think that recognises the efforts that have been put in place to ensure that we meet our transparency requirements. One hundred per cent. of the Department’s CANs—contract aware notices—have been published.

The hon. Member asked a particular question in referring to my right hon. Friend the Prime Minister’s comments on 22 February—I hope I am correct in surmising that. My right hon. Friend was responding to a question around the failure to publish the details of specific contracts that are subject to judicial reviews. I am advised that, at the time of his statement, the details for all the contracts under scrutiny were published.

Covid Contracts: Judicial Review

Debate between Rachel Reeves and Edward Argar

Wednesday 24th February 2021 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

(Urgent Question): To ask the Minister for the Cabinet Office if he will make a statement on the recent judicial review ruling, which found the Government had acted unlawfully in respect of covid contracts.

[The Minister for Health (Edward Argar)]

Protecting those who protect us has been one of the Government’s most important goals in our fight against covid-19. To do that, we have had to expand our personal protective equipment supply chain—it has gone from supplying 226 NHS trusts in England to supplying more than 58,000 different settings—and we have had to create a whole new logistics network from scratch. Thanks to the hard work and dedication of so many people, we have delivered more than 8.6 billion items of PPE to the frontline so far, with billions more ordered and being supplied.

Our team worked night and day to procure PPE within very short timescales and against the background of unparalleled global demand. That often meant working at incredible speed, especially in the early months of the pandemic, to secure the vital supplies required to protect NHS workers and the public, which we did.

Let me turn specifically to the High Court judgment. There has been a lot of confusion about what the ruling said and did not say, and I welcome the opportunity to clarify that to the House today. The High Court case did not look at the awarding of the contracts; rather, it looked at the timing of the publication of the details of contracts awarded. The court ruled that at this time of unprecedented pressure, contract award notices were not all published in the timescales required by the regulations. However, it also found that there was no deprioritisation policy in that respect in the Department. As we set out to the court, the delays were caused by the workload involved in responding to one of the greatest threats to public health that this country has ever seen.

We take our transparency requirements very seriously, and it is important that I put on the record that we of course take the judgment of the court very seriously and respect it. We are working with colleagues across Government to implement the recommendations set out in the report published earlier this month by the Public Accounts Committee, chaired by the hon. Member for Hackney South and Shoreditch (Meg Hillier), but as we do that, we will keep acting quickly and decisively to respond to this deadly threat, and we continue to do all we can to help save lives.

[Rachel Reeves]

A stain has emerged on this Government’s response to the crisis. There has been an unedifying goldrush of chums and chancers; £2 billion-worth of contracts have been handed to those with close links to the Conservative party, from the Health Secretary’s pub landlord, to the donors, manifesto writers and the old boys’ club—they have all had a return on their investment at our expense.

The Government have been taken to court, and they lost, which cost taxpayers even more money. The Home Secretary once said that she wanted people

“to literally feel the terror at the thought of committing offences.”

She does not have to look to the streets to find law-breakers; she only has to look across the Cabinet table. This Government are not terrified of breaking the law, because they think they are above the law.

Now that the Government have lost in court, I ask the Minister: what was the cost to taxpayers of fighting this case? Will the Government agree today to publish the names of all businesses in their VIP fast lane and say how they got on that list? Will all overdue contracts be published by the end of this week? When will the management consultants hired locate the billions of pounds of PPE that the Government seem to have misplaced? When will clawback be used to get back taxpayers’ money for contracts that have failed to deliver? Will the Minister take this opportunity to apologise to the doctors, nurses, care workers and other frontline workers who did not have the PPE that they needed, and who had to make makeshift PPE—because, contrary to what the Health Secretary said, there was a shortage of PPE and those working on the frontline were not protected?

While he is here, will the Minister, Serco’s former head of public affairs, reveal the mystery of why the Government created Serco Test and Trace, rather than a true NHS test and trace embedded in our communities? NHS workers, care workers and taxpayers deserve better. We deserve the end of crony contracts from this Government.

[Edward Argar]

Notwithstanding the circumstances and the approach adopted by the hon. Lady, it is a pleasure to appear opposite her at the Dispatch Box for the first time. She raised a number of specific points, but before I turn to them, I have to reiterate what the judgment did and did not do. The judgment focused on timely publication of contract notices; it did not make any judgment on, or consider in any way, the appropriateness of the contracting process or any of the individual processes.

The hon. Lady alleges impropriety and inappropriate behaviour—wrong. The National Audit Office report was absolutely clear that there was no evidence of any inappropriate behaviour, and indeed no court has found this. I highlight to her that the judgment was a declaratory judgment, and it stated that there had been a breach of the regulation 50 requirements. The judge subsequently highlighted, in paragraph 149:

“But the overall picture shows the Secretary of State moving close to complete compliance. The evidence as a whole suggests that the backlog arose largely in the first few months of the pandemic and that officials began to bear down on it during the autumn of 2020.”

I remind the House, and indeed the hon. Lady, of the situation we faced back in April. There were 3,301 people in mechanical ventilation beds, 21,307 people in hospital with covid, and at the beginning of April, according to our best understanding of positive cases at the time, the average number of positive cases and patients in hospital was doubling every seven days. In those circumstances, I make no apologies for the Government doing everything in our power to ensure that the NHS and frontline workers did not run out of PPE. As the National Audit Office has acknowledged, there was no national shortage of PPE at the time and throughout the pandemic.

The hon. Lady asked a number of questions. She talked about the current situation regarding publication, compliance and costs. As I have mentioned to her briefly before, there is an element of this case that is yet to be concluded, as some information is due to be provided to the judge on Friday. We will do exactly that, and the information will be made public when it goes to the court. We respect the court’s role in the process, but I expect the judge to have that published in a couple of days’ time.

On the priority route, if I recall correctly, many Members on both sides of the House requested expeditious consideration of offers of help, and I am grateful to all who made those offers. Every one of those went through an eight-stage process, run by civil servants, entirely appropriately. They checked the appropriateness of the PPE and the organisation supplying it, and conducted due diligence. Indeed, as I recall, the hon. Lady herself, on 22 April, published a letter that she had sent to the Chancellor of the Duchy of Lancaster—it was helpfully analysed at the time by the Guido Fawkes website—sharing some of her suggestions of companies or individuals that should be put through rapid assessment. I acknowledge that she said that there should be assessment and due diligence, but she asked that they be assessed rapidly. I believe that many Members of the House took the same approach. In that letter, she concluded:

“We need Government to strain every sinew and utilise untapped resources in UK manufacturing, to deliver essential equipment to frontline workers. This must be a national effort which leaves no stone unturned.”

She was right. I agreed with her sentiment then, and I still do, but she no longer appears to agree with herself.