(9 years, 2 months ago)
Commons ChamberT3. The Public Services (Social Value) Act has been in place since 2012. Many organisations and communities have benefited from its principles. Will the Minister outline the further steps that the Cabinet Office is taking to encourage a greater number of local authorities and Government Departments to adopt the Act?
I thank my hon. Friend for being a vocal champion of the Act. The Public Services (Social Value) Act has helped achieve greater impact from public spending, resulting in better outcomes for individuals and communities. In line with Lord Young’s recommendations, I shall shortly announce a package of measures to support more public sector bodies to better utilise the Act.
T7. How is the Cabinet Office implementing the family test and monitoring its implementation across Government?
(9 years, 3 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I congratulate the hon. Member for Glenrothes (Peter Grant) on securing the debate. I am aware that the Scotland Office received a number of freedom of information requests about the leak of a memorandum produced within the Department, and also about the investigation into the leak conducted by the Cabinet Office. I am also aware of the hon. Gentleman’s efforts in Parliament to obtain information about the matter. I hope it will help him, and others here today, if I respond to the points made by first saying—as he did—something about the Government’s general approach to freedom of information and the Freedom of Information Act and, secondly, about the operation of leak inquiries, and of this case in particular.
It is important to state clearly that the Government are committed to openness, and recognise the contribution that the Freedom of Information Act has made to greater transparency. But for any freedom of information regime to operate effectively, it is also important that it provides appropriate safeguards against the disclosure of sensitive information. The Freedom of Information Act contains a range of exemptions designed to protect sensitive material from inappropriate disclosure. Some, such as those relating to personal data and court records, are absolute, but others, such as those relating to investigation and health and safety, are qualified. Before such qualified exemptions can be applied, it is necessary to consider the public interest for and against disclosure, and only when the balance of the public interest favours withholding information can an exemption be applied.
The Scotland Office has a strong record on answering freedom of information requests. In 2014, the Department received 154 requests, 92% of which were answered within 20 working days—the equivalent figure for the Scottish Government was 77%. Of those 154 requests, 69 were granted in full and nine were declined in their entirety. In other words, the Department granted 85% of the requests received in 2014 and entirely declined just 11%. Figures for 2015 have so far been published for only the first quarter, but they are broadly consistent with those for 2014. From January to March this year, 90% of Scotland Office requests were answered within 20 working days and 82% resulted in full disclosure. That record demonstrates the seriousness with which the Scotland Office, like the rest of the Government, takes its obligations under the Freedom of Information Act, and clearly shows that when it is in the public interest to release information, that material is provided.
The hon. Member for Glenrothes raised concerns about the handling of specific cases. He is doubtless aware of the appeals route that exists under the Freedom of Information Act but it might, none-the-less, help if I said something about it now. An applicant who is dissatisfied with the response he or she receives to a freedom of information request has the right of appeal, and I understand that a number of applicants have chosen to exercise that right in relation to requests about this particular matter. An applicant may first ask the public authority to conduct an internal review of its original decision to decline a request. Should the applicant remain dissatisfied, he or she may submit a complaint to the Information Commissioner under section 50 of the Freedom of Information Act. The Information Commissioner's Office, which is independent of Government, has the power to issue a binding decision notice ordering disclosure if it concludes that information has been wrongly withheld. It is then possible for applicants and public authorities to appeal further to the first tier tribunal and, on a point of law, beyond that to the upper tribunal or courts. Freedom of information requests received about the leak and resultant investigation were answered based on an assessment of the requested information’s sensitivity. I recommend those dissatisfied with the responses they have received to appeal those decisions through the channels I have described.
I conclude my comments on freedom of information by re-emphasising that for the Freedom of Information Act to function effectively, it is important that it strikes an appropriate balance between transparency and the protection of sensitive information.
Given that the Minister has indicated that he is coming to the end of his comments, does he intend to answer any of the questions that I asked? Are the Government prepared to answer them at any time? If not, perhaps the Minister can just say that they are not going to answer them.
I intend to answer all the questions that the hon. Gentleman raised. We have 10 minutes more to debate this matter, and if he gives me the time and has some patience, I will be perfectly happy to deal with the questions he asked.
The Freedom of Information Act has now been in operation for more than 10 years, and it is therefore right that we review its operation. That is why we have recently established an independent commission on freedom of information, which is looking at the protection the Act provides for sensitive information and its costs to public authorities. The commission will report by the end of November.
Against the backdrop I have described, I will address the particular concerns expressed by the hon. Member for Glenrothes on the leak of the Scotland Office memorandum. It is important to underline that the Cabinet Office completed a full and detailed inquiry into the leak, and we have been transparent about the purpose and findings of the inquiry at every stage. In response to concerns expressed by the First Minister, on 4 April 2015 the Cabinet Secretary instigated a Cabinet Office-led leak inquiry to establish how extracts from the document may have got into the public domain. The leak inquiry followed thorough and well-established procedures for dealing with such matters. In investigating the source of the leak, the investigation team searched all relevant official phone records, emails and print logs. Those who had access to the memo were asked to complete a questionnaire on what they did with the memo when they received it. They were then interviewed about that.
The Cabinet Office issued a statement on 22 May 2015 confirming the conclusions of the investigation. That statement is available on Gov.uk. It is a well-established convention that the Government do not comment on the process or conclusions of leak inquiries. However, in recognition of the particular sensitivities of this matter, the Cabinet Secretary felt it was necessary and appropriate to set out details of the approach taken during the investigation and the conclusions reached. In that respect, we have gone further than ever before in providing information on the investigation.
Members will recognise that an important balance has to be struck in handling such inquiries. It is essential that we ensure that the public have full confidence and trust in the operation of leak inquiries and are assured that appropriate action is taken where conclusions are reached. Alongside that, however, is a wider public interest in ensuring that leak inquiries take place in an environment where individuals feel able to contribute fully and frankly and have complete confidence that any evidence provided will be handled with confidentiality. Maintaining the confidentiality of the detailed operation of such inquiries is critical in ensuring that future inquiries and broader whistleblowing processes are trusted and effective, receiving the full co-operation of all.
Alongside that, the Government do not release investigation reports, which may reveal techniques used by Departments and insight into how to avoid detection. The Cabinet Office and the Scotland Office received a number of FOI requests relating to this matter. They were handled in the usual way, with full consideration given to the weight of public interest in each case. Any decisions to withhold information reflected the important need to maintain a safe space around the operation of leak inquiries and were balanced against the unprecedented amount of information already in the public domain. As I have already set out, clear routes of redress are open to any individual who feels their particular request has not been handled fairly or appropriately, either through an internal review or referral to the Information Commissioner’s Office. We will continue to handle any such cases on their individual merits.
The hon. Member for Glenrothes asked specific questions about why the Government have not released the memo in question. As the Leader of the House made clear in response to the hon. Gentleman’s questions, it is important that the Government can operate in the interests of the country, and by that I mean the UK. In considering the hon. Gentleman’s specific request for sight of the memo, the Scotland Office concluded that releasing the memo would be detrimental to international relations. Anything that would hinder the United Kingdom’s ability to work with its international partners would damage the United Kingdom’s ability to protect and promote its interests abroad, which would not be in the public interest.
As the Cabinet Office statement of 22 May made clear, the investigation team interviewed the civil servant in the Scotland Office who produced the memorandum. He confirmed under questioning that he believed that the memo was an accurate record of the conversation that took place between him and the French consul general. He highlighted that the memo had stated that part of the conversation between the French ambassador and the First Minister might well have been “lost in translation”. Senior officials who have worked with the individual say that he is reliable and has no history of inaccurate reporting, impropriety or security lapses. The Cabinet Secretary concluded that there is no reason to doubt that he recorded accurately what he thought he had heard and that there was no evidence of any political motivation or dirty tricks.
I want to see whether I can deal specifically with some of the hon. Gentleman’s questions. He asked who saw the memorandum. The Cabinet Office statement on the leak inquiry made it clear that the former special adviser, Mr Roddin, and the right hon. Member for Orkney and Shetland (Mr Carmichael), who gave his assent, were responsible for the leak, and that no one else had any involvement in leaking the memo. The Scotland Office operates within the civil service code, and the inquiry did not find any issues of propriety with Scotland Office officials. We would not normally comment on internal communications.
The hon. Gentleman asked about the common practice for civil servants to go “behind the back” of Ministers—I think that was his phrase—and speak to foreign diplomats. It is common practice for UK Government Departments to engage with diplomatic and consular corps across the United Kingdom and to share factual information about our respective activities on a wide range of issues, including Scotland. The UK Government and the Scottish Government regularly share information on engagement in international activities in a manner that is consistent with a memorandum of understanding and supplementary agreements between the UK Government, Scottish Ministers, Welsh Ministers and the Northern Ireland Executive. Officials at the Scotland Office work within the guidelines set out in the civil service code and the inquiry did not find any issues of propriety with Scotland Office officials.
The hon. Gentleman asked why the Cabinet Office has taken FOI policy from the Ministry of Justice. That is presumably because it is logical for FOI policy to sit within the Cabinet Office, given that it is the lead in transparency policy in general across Government. He also asked why the Scotland Office used an exemption relating to physical and mental health. The Scotland Office applies freedom of information exemptions to requests on a case-by-case basis. If an individual is unhappy with the handling of a case, they can go to the Information Commission or tribunal.
I think that directly handles the questions that the hon. Gentleman asked me. As I have previously set out, it was a thorough investigation and I am clear that the statement issued by the Cabinet Office in May deals robustly with the concerns that he and others have expressed.
Question put and agreed to.
(9 years, 5 months ago)
Commons Chamber5. What progress he is making on increasing the number of places on the National Citizen Service.
With your indulgence, Mr Speaker, may I first congratulate the hon. Member for Wigan (Lisa Nandy) on the birth of her son in May? I am sure that it is the reason for her absence today, as she normally shadows me.
More than 135,000 young people have benefited from the National Citizen Service in recent years. In 2015, more young people than ever will have the opportunity to take part. I have written to all Northern Irish and English MPs encouraging them to visit an NCS programme near them this summer.
I have seen at first hand how the NCS programme can give young people greater confidence, help them work in their community and build long-lasting relationships. Will my hon. Friend confirm that the Government will continue to back the NCS into the future, so that we can give increasing numbers of young people the skills they need to get on in life?
My hon. Friend is absolutely right in his assessment, which is why I am delighted that more than 1,100 people took part in his constituency and the surrounding area last year and why I am committed to continuing the rapid expansion of the programme. He will be pleased to hear that 92% of participants say that the NCS helped them to develop useful skills for the future and 76% feel more confident about getting a job in the future.
I welcome the Minister’s answer. I am a tremendous supporter of the NCS programme, having seen the work done in north-east Lincolnshire, where the programme is delivered by Grimsby Town Sports and Education Trust. Does he agree that encouraging football clubs and similar organisations in this area encourages our young people to get even more involved in the programme?
I join my hon. Friend in thanking Grimsby Town for the part it played in supporting nearly 200 young people taking part in the NCS in his constituency and the surrounding area in 2014. In particular, I pay tribute to Graham Rodger and Lee Stephens for leading an excellent team. I understand from my hon. Friend that it contains a former Grimsby Town goalkeeper, so it could be said that the NCS is in safe hands.
I absolutely agree with my hon. Friend on that. That view is supported by consecutive independent evaluations, which have demonstrated the effectiveness of the programme for people from a range of backgrounds. For instance, in 2013, 16% of NCS participants were in receipt of free school meals, which compares with a figure of about 8% of 16 to 17-year-olds in the general population. Despite this great success, I still want to go further in reaching out to more young people who face big challenges in life.
One of the Minister’s predecessors, the hon. Member for Ruislip, Northwood and Pinner (Mr Hurd), said that he was “obsessively” monitoring the backgrounds of people taking part in the NCS. Can this Minister reassure the House that he is monitoring with equal enthusiasm? Are people from deprived backgrounds taking part in the programme to the same degree as others?
I think I just answered that question, as the hon. Gentleman would know if he had listened to my previous answer. As he is aware, we have a manifesto commitment on guaranteeing a place on the NCS for all young people. That requires commitment from across government. I am working with Ministers across government to ensure that the NCS benefits as many young people as possible, no matter where they live, what school they went to or what their circumstances in life have been.
The Minister will be pleased to hear that I will be visiting an NCS scheme in my constituency over the summer recess. Given that youth services in England have experienced cuts almost three times greater than overall cuts to local authorities, what is he doing to make sure that young people have valuable activities all year round, not just through the NCS?
The NCS is complementary to, not a replacement for, local government services. The NCS consistently demonstrates its positive impact on participants and value for money. I find it very disappointing that local councils are making the choice to cut youth services, but we in the Cabinet Office are supporting local authorities through programmes such as the Centre for Youth Impact and Delivering Differently for Young People.
(9 years, 8 months ago)
Commons Chamber7. What steps he is taking to improve access to Government procurement by small and medium-sized enterprises.
Over the past five years, we have implemented a wide range of measures to open up the way we do business to make sure that small companies are in the best possible position to compete for contracts. These measures include increasing transparency, making opportunities more accessible, removing unnecessary bureaucracy, improving payment terms and clamping down on poor practice.
I thank the Minister for that answer. He will be aware of the report of the Public Administration Committee that showed that at the time not enough was being done. Does he accept that there still needs to be a real culture change in the civil service to open up Government procurement to small and medium-sized enterprises?
We have obviously made a lot of progress and there is more to do, but we intend to extend and embed the reforms that we have made over the past five years. I would just remind my hon. Friend that at the last general election, only 6.5% of direct central Government procurement spend was with smaller businesses, and we had no idea how much was spent in the supply chain, so we have made huge progress.
The Minister omitted to say in his answer that nine out of 17 Departments spent less with SMEs in 2013-14 than they did in 2012-13. With just 10% of Government contracts going to small businesses, why have this Government been so poor when it comes to procurement from our SME sector?
In 2010, the Government set an aspiration that by 2015 25% of Government procurement spend by value should go to SMEs directly and into the supply chain. In fact, we have exceeded our target, and a record 26.1% is now being spent with SMEs. That is a record to be proud of, and a tribute to my right hon. Friend the Minister for the Cabinet Office and Paymaster General.
May I congratulate my hon. Friend on all the measures that he and his colleagues have taken on this subject? I know that four businesses in my constituency are currently benefiting from their measures.
I know my hon. Friend is a great champion of small businesses in his constituency. One of the wider benefits of this programme of commercial reform is that it enabled the Government to make the huge saving of £15 billion in the years 2010 to 2014. As I say, that is a lasting tribute to my right hon. Friend.
The Minister might confess that it would help if he bought enough desks for civil servants. In answer to 11 parliamentary questions, Whitehall Departments have told me that they have more civil servants than desks. In the Department for Transport, there are 6,600 officials and 1,500 desks. This sounds more like musical chairs than hot desking. Is it the cause of all the chaos and confusion in this Government?
2. If he will expedite the review of papers held on people convicted in 1973 in relation to alleged incidents during the national building workers’ strike at building sites in the Shrewsbury area so that the review is completed as soon as possible.
5. What progress he has made on promoting digital inclusion.
This is a devolved matter but in England and Wales more than 70 public, private and voluntary sector organisations now support activity under the digital inclusion charter, working together to help individuals, small businesses and charities to realise the benefits of being online. Later today the Government will launch the Digital Friends initiative that will call on civil servants to go out into their communities and teach digital skills to friends, family, neighbours, or colleagues who are offline.
The Minister will be aware that, unfortunately, Glasgow has one of the highest levels of population who are offline. The Government have recently run a series of adverts on Glasgow radio stations about encouraging people to switch their electricity and gas suppliers, but they are asking people only to use the online route. What assessment has he made about how we can encourage digital inclusion and the appropriate way to target Government adverts?
T5. What assistance is the Minister for Civil Society giving to the National Citizen Service to maximise the number of students from disadvantaged backgrounds who participate in it so that they can play their full part in a programme that would benefit them more than those from more affluent areas?
The hon. Gentleman’s interest in the NCS is welcome and I know is reflected in his constituency, where demand for the programme is high among pupils at Bulwell academy and Bluecoat Beechdale academy. I am delighted that the latest independent evaluation found that in 2013 16% of NCS participants were in receipt of free school meals, compared with about 7% of 16 and 17-year-olds in the general population.
T6. The Cabinet Office has been relentless in reducing waste from public services. However, does my right hon. Friend share my concern that the hidden cost to the taxpayer, as well as the lack of local accountability, from doing away with the shire fire and rescue services and trying to create a national fire service as Labour proposes would be considerable?
(9 years, 9 months ago)
Commons ChamberWe have had exactly that problem with senior police officers. As soon as they are brought to book or accused of anything, they run for cover. They retire or resign, and are then able to keep their pensions. When we deal with the next group of amendments, we shall discuss the question of whether the Bill should apply to both expulsion and suspension. I think that there should be a distinction between them, but I will not anticipate that later discussion.
As is already clear from the short debate that we have had so far, this is an extremely complex matter, and the idea that it could become law without being properly thought out fills me with horror. The fact that most members of the general public will not be writing letters saying how outraged they are by the potential consequences of the Bill does not mean that we should not pay great attention to its implications, not least because it impinges on our constitution. At one stage during the current Parliament, the Government were taking the line that they did not want any more piecemeal reform of the other place, but they seem to have shifted their position a bit. Perhaps the Minister will explain a little more about the Government’s policy in a moment, but I think that, unless it is amended, what we have before us could be very dangerous to our democracy.
My hon. Friend is making an important speech, but may I return him to his earlier comments about Lord Rennard, and to the point made by my hon. Friend the Member for Shipley (Philip Davies) about tax evasion? Is my hon. Friend suggesting that under those circumstances, if the legislation were enacted, it could lead to the expulsion of a peer? Surely the powers to suspend a peer already exist. This Bill focuses on expulsion, not suspension.
Actually, having discussed the Bill with my right hon. Friend the Member for North West Hampshire (Sir George Young), my understanding is that the most important part is the part that deals with suspension, which enables the House of Lords to suspend a Member for a longer period than until the end of the Parliament. There are all sorts of anomalies. If a Member of the Lords chooses to misbehave at a late stage in a Parliament, they can be suspended for only a few weeks, whereas if they misbehave at the beginning of the Parliament, they can be suspended for up to five years. That is the part of the Bill with which I have sympathy. I am much less sympathetic when it comes to the issue of expulsion.
At present, there are very circumscribed rules relating to the ability of the other place to expel. They are the rules that we have in the House of Commons, applying to Members who have been convicted of an offence and sentenced to more than a year in prison. However, whether we are talking about expulsion or suspension, it needs to be dependent on bad conduct, and that is where there is a big gap in the Bill. It obviously enables people such as Lord Wallace to hope that in due course they can bring within the ambit of the Bill all sorts of egregious behaviour, some examples of which we have been discussing this morning.
I hope that my right hon. Friend the Member for North West Hampshire will respond to the concerns that I have addressed. In our earlier debate, we discussed the balance between delay and getting things right. I think it is important for us to get this Bill absolutely right, even if that means it is delayed for a few hours or days.
It is a pleasure to be here on a Friday. This is not something that I have often been able to do in the past. It is also a pleasure to be able to listen to some of the older generation sallying forth, as my right hon. Friend the Member for Banbury (Sir Tony Baldry) might have put it.
For the older generation, sitting on Fridays is a regular occurrence. We are often here, Friday after Friday, as well as doing our constituency work. Indeed, I made my maiden speech on a Friday. As for the idea that being here on a Friday is somehow exceptional, for us it is part of our natural life, as were all-night sittings.
I meant that being here on a Friday was exceptional for me, not for my right hon. Friend. Perhaps I did not make my point clearly. It has been a pleasure to listen to him and to the others who have been making contributions today. It has been great to see some of the hon. Members who come here on a Friday in action. It has been a particular pleasure to hear my hon. Friends the Members for Christchurch (Mr Chope), for Shipley (Philip Davies) and for Bury North (Mr Nuttall), as I have heard much about these Friday sittings.
As my hon. Friend knows, this Bill is expressly limited to matters of conduct. That has been made clear in the Bill and throughout the debates in this House and the other place. The power of expulsion that the Bill confers on the other place is similar to the power that we already have in this House. This House has an inherent power to expel Members if it needs to, but the other place cannot do so because, without primary legislation, it cannot override the right of peers to receive a writ of summons. I hope that that deals with my hon. Friend’s point.
The Bill is also already explicitly limited to matters of conduct by subsection (4) of clause 1. It is certainly envisaged that a resolution to suspend or expel would only follow from a report from the Committee for Privileges and Conduct. Proceedings on the Bill in the Lords made it clear that any relevant breach would be linked to the existing code of conduct. The Government therefore do not support the new clauses or amendment 18.
I should like to begin by thanking all my hon. and right hon. Friends who have taken part in the debate for their interest in the Bill. I am grateful to my right hon. Friend the Member for Banbury (Sir Tony Baldry) for making it clear at the beginning of his remarks that he supported the principle behind the Bill, and I am grateful to the Minister for confirming that the Bill conforms to the requirements of the European convention on human rights. I am also grateful to my hon. Friend the Member for Christchurch (Mr Chope), who, as always, has raised important issues that will need addressing as we go through the legislation.
I should like to put the new clauses and amendments, and indeed the Bill, into perspective. As my right hon. Friend the Member for Banbury said, the Bill basically does two things. It enables a suspension to go beyond the lifetime of the current Parliament, and it enables the House of Lords to expel a Member. It does not change anything else. It does not change the code of conduct or the environment in which the code is administered, and it does not change the interface between the House of Lords and the courts in regard to issues such as exclusive cognisance. So, to some extent, the broader issues that he has raised have already been dealt with in the context of the original introduction of the code of conduct and of how the system works.
The Bill has no direct impact on this House. My hon. Friend the Member for Christchurch said that clauses had been dropped because they were controversial, but there has been no sign so far—certainly in the upper House—of any controversy. Indeed, there was an absence of controversy as the Bill went through. The upper House sees it as an important building block in restoring the reputation of that House, by giving it clear powers to expel a Member whose behaviour is unacceptable. There will be an indirect benefit for this House, in that anything that restores confidence in Parliament is good for both Houses.
I turn now to the new clauses and the amendment. I understand exactly why my right hon. Friend the Member for Banbury tabled new clause 1. I understand that in the House of Lords, technically, it is not the Lord Speaker who lays such documents. That is in fact done by the Committee for Privileges and Conduct, which lays on the Table the reports of any investigation into the conduct of a Member of the House of Lords. The Committee is already required to do that by Standing Order No. 68 of the House of Lords, which states:
“Reports from Select Committees shall be laid on the Table and ordered to be printed. Notice shall be given on the Order Paper of the day on which the report is to be considered .”
I therefore hope that my right hon. Friend will agree that we do not need any changes to the legislation or to Standing Orders to enable such reports to be laid.
My right hon. Friend made an important point about natural justice. If he looks at the House of Lords code of conduct, he will see that paragraph 19 states:
“In investigating and adjudicating allegations of non-compliance with this Code, the Commissioner, the Sub-Committee on Lords’ Conduct and the Committee for Privileges and Conduct shall act in accordance with the principles of natural justice and fairness.”
Also, if he looks at those who sit on the Committee, he will see that it is required, by Standing Order No. 77, to include two former holders of high judicial office. I therefore think that we can be confident that the fate that befell poor Lord Lovat will not befall any errant peer; no one will be subjected to a kangaroo court. We can be confident that the principles of natural justice will be upheld. The Standing Order also states:
“A Committee for Privileges and Conduct shall be appointed at the beginning of every session; sixteen Lords shall be named of the Committee, of whom two shall be former holders of high judicial office.”
My right hon. Friend went on to deal with the issues of privilege, and he referred to the Parliamentary Standards Act 2009 and an amendment inserted in the Bill that became that Act by the House of Lords. That Bill was a very different animal from this one. The Bill then being considered contained provisions that seriously risked breaching privilege. He may well remember the decisive intervention of the then Clerk of the House, Malcolm Jack, who produced a report during the passage of the Bill expressing the concerns in this House. That Bill explicitly required the production of a code of conduct relating to financial instruments and it set out that it must be laid before the House of Commons. The Bill detailed at some length the procedure of any investigation into a breach of that code and established a new offence of providing false or misleading information about allowance claims.
The short Bill before us is a very different animal and does none of those things. Unlike with the 2009 Act, the Bill has raised no concerns from the Clerks of the Parliaments, nor has anyone raised any concern about its current drafting risking parliamentary privilege. As the Minister has just said, matters of parliamentary privilege do not need to be expressly stated in legislation in order not to be justiciable.
Let me now address the measures proposed by my hon. Friend the Member for Christchurch on the code of conduct. A code of conduct is already produced, and it is published by the Committee for Privileges and Conduct. That already takes place under Standing Order No. 77. All reports from that Committee that have recommended that a sanction should be applied have included a very clear reference to the relevant provision of the code that was breached in each instance—that is also what happens in this House. The most recent investigation gives us an example of how this is done. The Committee’s report summarises and includes the findings of the House of Lords Commissioner for Standards and the Sub-Committee on Lords’ Conduct, all of which include specific reference to which paragraphs of the code of conduct the Member was alleged to have broken. The most recent report states:
“The complaint alleged that Lord Redesdale breached the Code of Conduct by not registering certain interests in the Register of Lords’ Interests (in breach of paragraph 10(a) of the Code) and by registering certain other interests more than one month after those interests came about (in breach of paragraph 13).”
Other reports on the conduct of noble peers, such as the one on the conduct of Lord Hanningfield, contain explicit reference to which particular breach of the code has taken place. My understanding is that the case of Lord Rennard was not referred because the code specifically says:
“Matters not falling within the Commissioner’s remit include…Members’ non-parliamentary activities.”
That is not wholly dissimilar to the rules that apply to us in this House and it explains why that case did not go before the relevant Committees.
As ever you are right, Mr Deputy Speaker, and I am sorry that I was led astray by the hon. Gentleman. It will not happen again.
The amendments deliver what we all want the Bill to do—that is how I view them—and I think they are useful in ensuring that we stick to what we think the Bill delivers, rather than go beyond that. I therefore hope that my right hon. Friend the Member for North West Hampshire will agree to them. The amendments are good, and should the opportunity arise I hope that my hon. Friend the Member for Christchurch will consider dividing the House on amendment 1. I would support him in that.
I thank my hon. Friend the Member for Shipley (Philip Davies) for being so brief.
The Government oppose the amendments, but I will speak briefly because I want to give my right hon. Friend the Member for North West Hampshire (Sir George Young) the opportunity to push the Bill through today. Amendments 1 to 5 and 16 remove all references to expulsion in the Bill, thereby removing from the entire Bill the power to expel a peer. The Government do not support removing the power to expel. That power would allow peers to deal with particularly serious misconduct and would bring the disciplinary powers of the House of Lords more in line with those of the House of Commons.
We expect the House of Lords to need to use such powers rarely, as has been the case in the House of Commons, which has not exercised its powers to expel since 1954. Nevertheless, we think it appropriate for both Houses to have such a power in order to deal effectively with those who bring the House into disrepute.
I have listened carefully to the points made by my hon. Friends in this debate, and particularly to my hon. Friend the Member for Christchurch (Mr Chope), who in Committee made it clear that he had reservations about expulsion. I have gone back to the sponsors of the Bill and had discussions with the upper House. If anything, the power to expel is almost more important to them than the power to carry on suspension beyond a Parliament, and it would strike at the very heart of the Bill if that provision were removed.
We already have powers to expel if someone is sentenced to more than a year’s imprisonment, but during debates in the upper House it was made clear that many breaches of the code of conduct would not be a criminal offence but are of sufficient severity to justify a Member of the House being expelled. The House of Lords wants the powers that we have to expel a Member if their conduct is unacceptable. Expulsion is different to suspension, and it is important that the upper House should have the power to expel because its Members cannot be expelled by constituents in the way that we can be. We should therefore think hard before we deny the House of Lords a power that it wants and sees as essential in restoring confidence in the institution—a power that the House of Commons already has.
(9 years, 9 months ago)
Written StatementsThe Cabinet Office wishes to report that a cash advance from the Contingencies Fund has been sought for the UK Statistics Authority (referred to as the Statistics Board in the Statistics and Registration Service Act 2007). The advance is required in order to meet an urgent cash requirement on services.
Parliamentary approval for additional resources of £15,000,000 from the Reserve will be sought in a Supplementary Estimate for the Statistics Board. Pending that approval, urgent expenditure estimated at £15,000,000 will be met by repayable cash advances from the Contingencies Fund.
[HCWS319]
(9 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I am very grateful to my hon. Friend the Member for South West Devon (Mr Streeter) for initiating the debate. He is a great champion of his constituents and of Devon, but also of the wider south-west region. This debate is evidence of that fact. I will start with general comments and then move on to the specific issues that he raised.
Changing and improving the way in which the public sector spends money on goods and services has been a Government priority since 2010. We have brought about unprecedented and comprehensive reform across all areas of procurement and will continue to do so, making Whitehall leaner and more efficient, so that Britain can compete in a global sense. Through our rigorous commercial reform programme, stripping out waste and buying more goods and services centrally, we have made the way in which we do business in central Government quicker, more competitive, more transparent, better value and far simpler than ever before. Those commercial reforms, combined with a baseline of spend in 2009-10, have created savings of £2.9 billion in 2010-11, £3 billion in 2011-12, £3.8 billion in 2012-13, and £5.4 billion in 2013-14.
To be regarded as a global competitor, Britain must ensure that the right investment is made in national infrastructure, with a focused investment in skills, technology and efficiency initiatives that help businesses to operate and expand in a global economy. The construction industry underpins the growth of this sector and facilitates future prosperity. We are reforming public construction enterprises to make them more efficient, collaborative, innovative and competitive, both at home and abroad, ensuring that the money that we spend boosts Britain’s competitiveness and delivers greater social mobility.
We are rebalancing the economy to achieve strong, lasting growth and widely shared prosperity. The Government construction strategy is about cutting waste and reforming our procurement processes, and reinvesting the savings that we make in more progressive ventures that stimulate the economy, ensuring liquidity of all businesses, big and small. It gives us a competitive advantage, underpins economic growth and generates higher-quality jobs.
We are backing the industries of the future and making Britain a great place to do business. The construction pipeline will provide more than £127 billion of strategic investment opportunities for businesses from this year onwards—a significant boost to economic growth in the sector. Government and industry are working together to create strong communities and to support local and national economies, investing in world-class, functional public buildings and spaces and inspiring businesses to grow.
Let me turn to the south-west. I can assure my hon. Friend that the Government are fully committed to a flourishing and prosperous south-west. Last month, my right hon. Friend the Chancellor of the Exchequer set out the Government’s long-term economic plan for the region. In delivering it, we will increase regional productivity, create more jobs and improve road, rail and digital communications infrastructure. My hon. Friend gave a couple of examples of where we are doing that, including the tunnel under Stonehenge and some of the rail improvements that will ensure a better rail service to the south-west in due course. The Government are therefore actively reforming procurement, encouraging construction and promoting regional growth, all of which is good news for companies in the south-west. Nevertheless, we recognise there is still a lot more we can do.
I am grateful to my hon. Friend for his three comments about the procurement activity undertaken by the EFA as part of its regional framework in the south-west, and I would like to deal briefly with each in turn. The first was about tenderers being selected on the basis of not the cheapest tender, but being closest to the average of the tenders. I understand from EFA officials that tenderers were selected on more complex price grounds than those mentioned by my hon. Friend, and I would be happy to share with him separately details of the methodologies used. I can assure him, however, that the approach adopted was meant to ensure a level playing field for suppliers by preventing larger companies from artificially deflating prices in their initial bid and then squeezing subcontractors in the supply chain. Contracts awarded under the framework follow a mini-competition to ensure that best value for money is achieved.
My hon. Friend asked about the procurement process, so let me briefly outline it for him. Public procurement rules apply to public purchases above defined thresholds and require those purchase opportunities to be advertised across Europe. In October 2013, the EFA advertised a prior information notice in the Official Journal of the European Union. Bidder days were then held to explain the tendering process to interested applicants. Interested firms were required to provide submissions by completing a pre-qualification questionnaire consistent with the Government’s publicly available specification 91 format. Following their submission, the PQQs were evaluated according to the published selection criteria. Shortlisted bidders were then invited to tender. I hope that gives my hon. Friend confidence that the proper process was followed in this case.
The Minister’s last comments were about as clear as mud, but I understand that that is what was on the paper he was given. I do not doubt for one minute the Government’s sincere objectives in this procurement process, but what is happening on the ground is totally different from what he has just said about procedures preventing subcontractors from being squeezed. Subcontractors are being squeezed, and that is why we need to look at what is happening down at the coal face.
I thank the hon. Gentleman for raising that issue. If what he says is the case, we will certainly look at it. The second point my hon. Friend the Member for South West Devon raised was that there are no local companies in the framework, despite there being substantial companies in the south-west.
Before my hon. Friend moves on, will he deal with the issue of tenders being judged on whether they are closest to the average price, rather than the lowest price, once they have got over the quality threshold? He said that I may have misunderstood the methodology, which is very complex, and that he is prepared to share it with me. However, for the purposes of the debate, will he tell me whether I am wrong about how the tenders are judged, or whether that is part of the process?
If my hon. Friend will allow me, I will come to that. To return to the previous intervention, however, where there is poor practice in the system and companies are being squeezed, we have a mystery shopper system, which will investigate cases thoroughly. [Interruption.] It is indeed called a mystery shopper system, which is probably mystifying everybody. By and large, it has yielded significant results for those who have made complaints.
As a contracting authority for the purposes of the applicable legislation—the Public Contracts Regulations 2006, which were introduced by the previous Labour Government—the EFA is bound by requirements of objectivity and non-discrimination. Those extend to a duty not to extend preferential treatment purely on the grounds of a bidder’s geographic location at the time of submitting a tender. EFA officials have assured me that robust and effective selection criteria were applied in the exercise we are discussing. They have also assured me that, in line with legal requirements, the evaluation criteria to be applied were shared openly with all the bidders.
It is important to remember that the largest part of procurement spend in the construction industry is with subcontractors, the majority of whom will be local suppliers. My hon. Friend tried to block that avenue off for me, but the evidence is that subcontractors are local in most cases. If he is telling me that local subcontractors are not being used in the south-west, I will ask my officials to look at what is happening there, but this does not seem to be the case in other areas. The French company that is one of the seven companies on the EFA’s list bought out Leadbitter, a UK company active in the south-west, although I am not sure of the full details of the purchase.
If the Minister has any figures about subcontractors, it would be helpful to all of us to see them—perhaps at a later date, if he does not have them to hand. However, I would be grateful if he addressed my point about the power imbalance between subcontractors and contractors. Does the Cabinet Office have plans to make sure that, even where local or regional companies are not granted the primary contract, local subcontractors can still take part in the process without detriment?
As I said, where there is an imbalance, and subcontractors providing a service to the main contractor are being, for want of a better word, abused, we have the mystery shopper system, which will thoroughly investigate any abuses. Where it has investigated complaints on behalf of individual organisations and it has found problems, it has taken actions that those organisations have found very useful. Most of these concerns can, therefore, be sorted out on the ground while contracts are being supplied.
The third point made by my hon. Friend the Member for South West Devon was that the seven firms include three foreign firms, including the French one I have just mentioned. Public sector procurers are required to seek value for money through fair and open competition. Through our membership of the European Union, and because we are a signatory to international agreements, our contracting authorities are required to place suppliers from Europe and various other countries on an equal footing with UK suppliers. That is a two-way street, as it gives our suppliers access to public procurement markets overseas, maximising value for money for the UK taxpayer, while ensuring that UK companies are able to compete abroad.
The Government want UK companies to be successful in public procurement. The best way to bring that about is for those companies to offer the goods and services we need at quality levels and for whole-life costs representing value for money. To that end, the Government are seeking to ensure that their large-scale purchasing power supports the task of boosting growth and enables us actively to shape the UK market for the long term. To place a value on a bid based on the geographical origin of the bidder would be contrary to the single market.
All the same, the Government understand the importance of a long-term approach to supporting UK business and aligning activity to deliver that. As part of the work, several areas where Government action can have an early impact have been identified. They are sectors, technologies, access to finance, skills and procurement. Strategies for 11 key sectors, including construction, are being developed in partnership with business. I should also point out that use of the Education Funding Agency regional framework is not mandatory. I am aware of two other construction frameworks for the south-west. Construction Framework South West, managed by Devon county council, has 11 suppliers, nine of which are British, including Midas. South West Consultancy Framework, managed by Torbay council, has seven suppliers, of which six are British.
The Government are committed to increasing opportunities for suppliers of all sizes to bid for work successfully through the procurement reforms, which also secure value for money for the British taxpayer.
Have the Minister’s officials been able to provide him with a list of British companies that have won contracts in France when the funding has come from the French Government?
Before the debate, I had not been given any such list, but during it I have been given some information; I think it has been provided from memory, and we should do some research and send that to my hon. Friend. I understand that a company based in west Cumbria just won a £1 million contract in France. We are not quite clear about whether that was Government-funded. I think the best thing would be for me to write to my hon. Friend.
(9 years, 10 months ago)
Commons Chamber1. What recent representations he has received on religious organisations and charitable status.
I have not received any representations recently from religious organisations on charitable status. More than 25,000 registered charities involve the promotion of religion. They play a hugely important role in our communities and support those in need. I pay tribute to their excellent work. They are often first in and last out of some of our toughest communities.
The Minister may recall the campaign that some of us waged on behalf of the Plymouth Brethren to retain its charitable status. It must have been for love, because they refused to vote on principle. We eventually won that campaign, but there is a worry on the part of many religious groups that increasingly so-called British values will trump faith values. Can the Minister assure faith groups that in the context of toleration for others they will be allowed to have space to teach their own faith?
My hon. Friend will know that the Charity Commission is independent of the Government and the Cabinet Office. It already respects the diversity of religious views, registering hundreds of new religious charities from a range of faiths every year, but it is fair to say that the Charity Commission did need to improve, as the National Audit Office said. It is now well on its way to doing that, but he can be assured that the Charity Commission has learned its lessons from the case he raises.
This is not about the Plymouth Brethren, but about a tiny sect of the Plymouth Brethren known as the Hales Exclusive Brethren. It is practising cruelty, I believe, in many ways against its own people. This is a dangerous sect. Rightly, the Charity Commission withdrew its status. The sect then had a campaign, which spent £2 million, to convince the Charity Commission that it had changed, and it changed its deeds. It is quite clear that this is what it calls “spoiling the Egyptians”, a process to deceive the Charity Commission. It is not abiding by its new status.
I thank the hon. Gentleman for that question, but the Charity Commission looked at this matter in detail and that religious group retained its status. Public benefit has always been a defining element of charitable status. That is what is unique about charities and what distinguishes them from private enterprises. We have no plans to change that.
Does my hon. Friend accept that British values have been forged in large measure by this nation’s Christian heritage? It is very important that our Christian heritage should be put at the forefront of our concerns. Will he make sure that the Charity Commission understands that there is widespread concern that Christian values are being treated on a par with other faiths, and that Christian values must be pre-eminent? There is a particular threat in our schools, where Ofsted is not taking the right view.
I completely understand what my hon. Friend says, but I have been assured that the Charity Commission has learned the lessons of the Brethren case. The commission is currently undergoing a major change programme to address the recommendations of the National Audit Office and become a more focused, robust and proactive regulator.
The case exhibited a deal of interest among the media, but the Brethren people went out of their way to ensure they provide a public good, in particular in schooling in my part of Northern Ireland and across the United Kingdom. Will the Minister maintain the stance that that public good far outweighs any perceived evil on the other side?
2. What progress he has made on implementing his Department's transparency agenda.
T5. Will the Minister join me in praising the vibrant charity and social enterprise sector in west Norfolk for all its superb work, especially the two charities chosen by this year’s mayor, Barry Ayres, namely the Prince’s Trust of King’s Lynn and the west Norfolk Kandoo club?
Social enterprises and charities make an invaluable contribution to our economy and society, and I am delighted to join my hon. Friend in thanking those charities in Norfolk and others across the country for their work. We are investing about £470 million over the spending review period directly to support charities and voluntary groups.
T7. At Prime Minister’s questions in November last year, the Prime Minister said that “there are 1,000 more GPs across the country than there were in 2010.”—[Official Report, 5 November 2014; Vol. 587, c. 822.]According to the UK Statistics Authority, however, there were actually 356 fewer. That is just one error. The UKSA recently revealed that, since May 2010, it had had to investigate the Government more than 200 times for the use of dirty statistics. When will this Government stop their fiddling?
(9 years, 10 months ago)
Commons ChamberI congratulate the right hon. and hon. Members who secured this debate on the Iraq inquiry. I thank all colleagues who have contributed to a very thoughtful and, at times, stirring debate. At times, with passions running high, it felt as though we were back debating the decision to go to war in the first place, all those years ago.
I am sure that I speak for all in the House in saying that when this inquiry was started in July 2009, none of us thought it would still not be completed by January 2015. It is frustrating and very disappointing that we still do not know when it will be published. It is clear that once it is published, the Government will need to look very carefully at what lessons could be learned for future inquiries. I am sure that everyone here will agree that the inquiry is unprecedented in its scope and scale. I agree with my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) that Sir John Chilcot is trying to leave no stone unturned. Never before has a UK public inquiry examined in such depth and detail a decision to go to war and its consequences over a nine-year period.
At the risk of junking the rest of my speech, I will try to deal with as many of the points that right hon. and hon. Members have raised as possible. May I first pay tribute to my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), who made an excellent speech? He raised important questions about potential conflicts of interests, particularly regarding the Cabinet Secretary. The Cabinet Secretary was identified as a final arbiter in discussions about the declassification of documents because he is the most senior civil servant, is bound by the civil service code on impartiality and, crucially, can see the papers of a previous Administration. I am not aware of any opposition to his appointment to that role at the time.
I understand my right hon. Friend’s concerns about the process, but I have seen no evidence to date of Sir John Chilcot being prevented from going wherever his inquiry wished. The inquiry panel has had access to every paper, memo, e-mail or minute of a meeting—classified or otherwise—that it wished to see. As my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) rightly said, there is a difference between what is declassified and what is published.
The right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) raised the involvement of the secretary to the Iraq inquiry in the foreign and defence policy secretariat. The appointment was agreed by Sir John in the full knowledge of that involvement, and he saw no conflict of interest, but the Foreign Affairs Committee may want to take that up and ask further questions.
The hon. Member for Islington North (Jeremy Corbyn) and others asked about the involvement of the US. The US Government have not at any stage made any attempt to delay the publication of the report. They have not sought to block the disclosure of evidence, including the exchanges between the Prime Minister and the President of the USA, despite the fact that those exchanges are a privileged channel of communication. Because that decision was a very difficult one for the Cabinet Secretary, he consulted a number of parties, including US officials.
The hon. Gentleman asked about the declassification process. As Sir John has confirmed, the process of declassifying the most difficult and sensitive documents has been completed. In respect of other documents, Departments continue to meet every request made.
If the British side is not blocking any correspondence or communications records between Blair and Bush, are the US or Bush blocking them? We need to be assured that all of that will come out if the inquiry is to have any credibility.
As I have said, there has been no attempt by the US to block any element of the inquiry. There have been discussions about the scope of what in the communications should be released. The gist of some conversations will be published, although they were previously confidential.
My right hon. and learned Friend the Member for Beaconsfield asked why the Maxwellisation process has been held up. In a letter to the Prime Minister on 4 November 2013, Sir John Chilcot explained that the delay in Maxwellisation was due to the fact that the inquiry and the Government had not reached an agreement on the disclosure of the material that the inquiry wished to include in its report. Sir John acknowledged that disclosure of the material raised difficult issues, which had taken time to resolve but had been worked through in good faith by both the Government and the inquiry. The inquiry did not want to issue its provisional criticisms without a clear understanding of what supporting evidence would be agreed for publication. I think that the further delays in progress might be raised in the Foreign Affairs Committee on 4 February.
The hon. Member for Newport West (Paul Flynn), who is no longer in his place, asked why we could not subpoena the evidence. The inquiry has identified the evidence it needs to reach its conclusions. The publication of that evidence without the context provided by the final report would lead to the issues being only partially understood.
My hon. Friend the Member for Wycombe (Steve Baker), who is not in his place, asked about Maxwellisation and Salmon letters. Salmon letters are sent before a witness gives evidence, while Maxwellisation happens before an inquiry publishes its report.
The hon. Member for Westmorland and Lonsdale (Tim Farron) asked about additional resources for the inquiry. That offer has always been on the table, not only from the Deputy Prime Minister but from the Government. The inquiry has, on occasion, asked for additional assistance and the Government have always provided it. I am not sure that Maxwellisation, which only recently started, as Sir John Chilcot has confirmed, could be speeded up by additional resources.
As many have recognised, it is a question of fairness that those who are provisionally subject to criticism are given the opportunity to make representations, and that the inquiry considers those representations properly. That process will take some time. It does not mean that the report will be watered down, as I understand the hon. Member for Westmorland and Lonsdale suggested recently. It will be up to Sir John and his colleagues to decide whether they accept the representations that are made.
The hon. Member for Ayr, Carrick and Cumnock (Sandra Osborne) asked why the report should not be published before the general election. The inquiry is completely independent of Government, and the timetable and processes for completing its work are matters for the inquiry. I can imagine the outcry there would be if the Government interfered in an independent process, and rightly so. If she listened to my highly respected colleague my right hon. and learned Friend the Member for Beaconsfield, she would have heard that there is still a real possibility that this will be a very good report indeed.
I am not sure whether the Minister has quite understood me. I was never under any illusion that the report would be published before the general election. My point was that we are now in the run-up to the general election. Does he not think that it is reasonable that Members of this House question the delay and ask for an indication of when we will get the report?
I hope that I will have time to come to that point in a moment.
Members asked why it was not a judicial inquiry. The terms of reference for the inquiry were established by the previous Labour Government. As Lord Wallace of Saltaire said yesterday in the other place,
“the Government are committed to learning lessons from the conduct of all public inquiries”.—[Official Report, House of Lords, 28 January 2015; Vol. 759, c. 200.]
That might be one such lesson that we need to consider.
Why did the inquiry stop publishing declassified documents? It published documents to accompany the evidence sessions that took place up to February 2011. Since then, Chilcot has said that he does not want to publish further documents, as it would be unwise to have a running commentary on events.
Like my hon. Friend the Member for Broadland (Mr Simpson), I well remember the debate in Westminster Hall. If memory serves me correctly, we were the only two Members present. I congratulate him on getting up a head of steam behind this issue. I note his suggestion regarding a parliamentary inquiry. That should probably form part of the lessons that we learn. We have had a number of suggestions on that subject. He made an interesting one about publishing correspondence between the secretariat of the inquiry and the Cabinet Secretary. Again, it is for the independent inquiry to decide whether to do so. That, too, might be one of the lessons to be learned after the report is published.
The hon. Member for Perth and North Perthshire (Pete Wishart) asked about compelling the publication of the report before the election. The inquiry is completely independent of Government, and the timetable and processes for completing its work are matters for the inquiry. It would not be appropriate for the Government to dictate to an independent inquiry how it should conduct itself. We know of no mechanism by which members of the inquiry panel could be required to put their signatures to a report that they did not consider to be complete and suitable for publication. I hope that that answers his point.
As I have said, the Government cannot say when the report will be delivered to the Prime Minister. That is a matter for the inquiry because it is fully independent of Government. However, Sir John will appear before the Foreign Affairs Committee on 4 February. Although he has said that he will be constrained in what he can say, it would be very helpful if he was able to provide some indication on the likely completion of the report. However, as he said in his letter to the Prime Minister, until the completion of Maxwellisation, he
“cannot give an accurate estimate for how long it will then take to complete”
the inquiry’s work.
All I can do is to echo the recent words of the Prime Minister. He hopes that the report will be delivered to him as soon as possible. Once the report has been presented to the Prime Minister and published, there will be an opportunity—this was asked about by one hon. Member—to debate its findings in both Houses. In relation to our accepting any recommendations that the report might make, it would be wrong to pre-empt the inquiry’s findings. The important thing now is to get the report published.
The Iraq conflict was a seismic political event, and it evokes strong feelings on all sides of the political debate. The Government recognise that it is of paramount importance that the inquiry is able to complete its work to provide a balanced, evidence-based report that shows why decisions were made and the lessons that must be learned. In October 2006, members of the current Government voted for an inquiry into the Iraq conflict and its aftermath. If the inquiry had been established then, it would have reported long ago.
(9 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I am grateful to the hon. Member for South Antrim (Dr McCrea) for securing this debate on such an important subject. I know that much of his concern is born from the experience of a constituency case, and it is absolutely right that he should speak up for small businesses in his constituency. I join him in congratulating all those wealth creators who take the risk of running their own businesses and, ultimately, pay for the public services that we all enjoy.
From the outset, this Government have fully recognised the vital role that small and medium-sized businesses have to play in helping us to achieve the best possible value for money when we buy goods and services. That was why we included in our initial programme for government an aspiration that by the end of this Parliament 25% of direct and indirect Government procurement of goods and services by value should go to SMEs.
That was a bold step considering that, under the previous Government, Departments had no idea how much they were spending on SMEs. After a lot of hard work, we found that it amounted to 6.5% of Government procurement of goods and services in 2009-10, or £3.1 billion. That was a shamefully low figure, given that 95.5% of private sector businesses in the UK are micro-firms—companies with fewer than 10 employees. However, those micro-businesses together accounted for 32% of private sector employment and 20% of private sector turnover.
We recognised that something had to be done to remove the barriers facing SMEs bidding for Government contracts, and we have gone a long way to removing those barriers. During the past four years, we have increased accessibility and transparency, identified and tackled poor procurement practice and provided practical assistance to help SMEs. We are now taking steps to extend those reforms further across the public sector.
In 2011, to increase accessibility, the Government established the Contracts Finder for central Government. That is a one-stop shop to enable suppliers to find procurement and subcontracting opportunities, tender documents and contracts online and free of charge. The Government have also committed, for the first time, to the publication of future contract opportunities to provide greater transparency about future public sector business, and to help suppliers to plan for and win more business.
Contract pipelines also enable the Government to secure deals that offer better value for the taxpayer by allowing for early negotiation with suppliers. The contract pipelines have developed from £40 billion of future spend in 2011 to more than £191 billion on 19 pipelines by December 2014. This information provides a view of major contracting opportunities through to 2020 and beyond, and it includes projected spend on High Speed 2 and the Thames tunnel, to give just two examples.
We have also appointed Stephen Allott as Crown representative for SMEs to be a
“strong voice at the top table”
for SMEs. He works across Government, and with SMEs and their trade associations, to get full value from SMEs and to increase the number of SMEs bidding for and winning Government contracts. We also set up the Cabinet Office SME panel to provide a regular forum for SMEs to raise the issues that concern them most and to hold our feet, as a Government, to the fire.
I will continue for a little bit longer, if I may, because I have to get through a lot of questions to which I know the hon. Gentleman and others want answers.
To identify poor procurement practice, we have introduced a mystery shopper service. If a supplier encounters poor practice, such as an over-bureaucratic pre-qualification requirement or unreasonable selection criteria, they can blow the whistle and refer that to our mystery shopper service, which will raise it on their behalf with the contracting authority. We regularly publish the outcomes of mystery shopper investigations on the gov.uk website. We have now received nearly 800 mystery shopper cases, with four out of five investigations resulting in a positive outcome.
In addition, the mystery shopper service has started proactively spot checking procurements by examining procurement documents online. We have instigated nearly 500 spot checks to look at a range of aspects of procurement, and have found issues in around 20% of the checks that we have conducted, including burdensome pre-qualification questionnaires.
Some 45 of those spot checks tested compliance with the Public Services (Social Value) Act 2012 and involved asking contracting authorities to set out how they considered the requirements of the Act in the pre-procurement stage of service contracts. The sort of evidence that we look for includes whether any consultation took place with the market, and with current and potential service users, and how the conclusions drawn from such consultation were used to shape the requirement. In total, 20% of the authorities examined were unable to provide sufficient evidence of compliance, so we have advised them to ensure they consider the Act in future.
We are particularly conscious of the burden of pre-qualification questionnaires, which are used to select suppliers to be invited to tender, and the pressure that they can place on SMEs. To address that situation, we have eliminated the use of PQQs in 15 out of 17 Departments for all central Government procurement under the EU threshold of approximately £100,000. The two Departments still using PQQs—the Foreign and Commonwealth Office and the Ministry of Defence—are doing so only for security reasons. For those procurements that still require a PQQ, we have introduced a much simpler standard set of questions, which reduces the burden on suppliers and levels the playing field in terms of financial risk and evidence of experience.
We recognise that being paid promptly is vital to enable SMEs to manage their cash flows and to reduce the amount of time wasted on chasing invoices. We are determined to help businesses to manage their cash flows and to transform the culture of late payment. In 2010, to respond to the point made by the hon. Member for Wigan (Lisa Nandy), the Government reiterated our policy of paying 80% of undisputed invoices within five days and ensuring that the prime contractors pay tier 2 suppliers within 30 days as a condition of contracting with Departments. We expect our suppliers to follow our example on prompt payment and to pay their subcontractors within the 30-day limit. When this does not happen, we encourage suppliers to report late payment to the mystery shopper service.
We know that we need to do more to improve performance across the public sector, however. We have made much progress in the past four years, but following recommendations by Lord Young of Graffham, we now intend to extend these reforms across the public sector to non-devolved bodies such as the NHS and local councils in England.
We intend to introduce measures in the next few weeks to ensure that 30-day payment terms flow down the public sector supply chains into all new contracts, which will ensure that smaller suppliers benefit from prompt payment. Contracts Finder will be extended to become a one-stop shop for public sector contract opportunities. We have fully redeveloped the original site to make it more user-friendly, including by creating a powerful search facility to make it easier to find and bid for work, and providing the ability to look up contracts by location and postcode. The site will function on multiple devices.
I am conscious of the time, but I want to cover as many of the questions that were asked as possible. We heard about EU procurement rules being unwieldy, and we have negotiated a new procurement directive that will improve the chances of SMEs winning public contracts. Regulations to transpose that directive will be introduced very soon.
As for the EU procurement requirement, as part of this year’s new public contract legislation, there will be more open approaches for supplier procurement and a reaching out to more suppliers, including SMEs. The documentation required from SMEs is being reduced to make it easier for them to access opportunities. The UK engaged proactively in negotiations on a new directive on SMEs and EU markets.
I was asked about aggregating demand with regard to helping SMEs. Breaking large contracts into more manageable lots is key to ensuring that SMEs can compete for aggregated deals, and the new procurement regulations will require contracting authorities actively to consider that. The new public contracts regulations will apply across the whole public sector, apart from devolved bodies, and will include Lord Young’s recommendation to abolish PQQs. Under Lord Young’s reforms, we are requiring the public sector generally to advertise contracts on Contracts Finder. This includes an option to highlight any opportunity as applying to an SME.
The hon. Member for South Antrim talked about an individual company. The Highways Agency fully supports the use of Conemaster on its road networks. It has funded its use in road trials, as well as an analysis of its economic performance, which showed that Conemaster demonstrated a positive benefit-cost ratio of 2:1.
I think that is about as far as I will get on answering hon. Members’ questions, but I would like to say finally that we—