Covid-19: Government’s Publication of Contracts

Debate between Stewart Hosie and Edward Argar

Tuesday 9th March 2021 Commons Chamber

[Edward Argar]

My hon. Friend highlights the situation we faced at the time. He also, quite rightly, highlights the importance of transparency and complying with all transparency processes. The Government invoked regulation 32, which recognised the exceptional circumstances that allowed for procurement without the usual tendering process. I believe that the usual tendering process could take, at a minimum, 25 days. My hon. Friend recalls the situation at the time. The Government did what we felt was right to ensure that we got the PPE that our frontline needed. The court case also found that there was no policy to deprioritise compliance with transparency regulations. I give him the assurance he seeks: the Government are doing everything possible to ensure that we fully comply with those regulations going forward.

[Stewart Hosie (Dundee East) (SNP) [V]]

Some 94% of contracts awarded before 7 October were, unlawfully, not published in time and, as of late last week, 100 are still not published. Some 58% were awarded without a competitive tendering process. There are conflicts of interest, inadequate documentation, a high-priority crony lane and then the Prime Minister announcing that all of the contracts were,

“on the record for everybody to see”—[Official Report, 22 February 2021; Vol. 689, c. 631.]

When he said that, it was simply not correct. Is the Minister not concerned that this failure in transparency, the potential conflicts of interest and a Prime Minister who does not even appear to know what is going on, simply feeds a perception of a Government doing profitable deals with friends and cronies, rather than delivering meaningful transparency that will drive value for money for the taxpayer?

[Edward Argar]

The right hon. Gentleman highlights quite accurately the 94%, which was cited in the subsequent judgment and the order that flowed from it, of the contracts that were late in publication. We accept that that is a statement of fact. The Department has published 100% of the CANs that it is obliged to publish that are related to this matter. He talked about a percentage that were procured without following a normal competitive tendering process—I think he referred to 58% as the percentage that were procured. That is entirely appropriate under regulation 32, recognising the situation we faced at the time and the priority of this Government to make sure that, at pace, we got the PPE that our frontline needed to keep it safe.

On his final two points, I do not see in the judgments in this case or in any of the other scrutiny of this issue by Committees of this House or other organisations anything that asserts or finds that inappropriate conflicts of interest influenced how these contracts were awarded. I am proud to serve in a Government led by a Prime Minister who leads from the front and has done whatever is necessary to make sure this country gets through this pandemic.

Covid Contracts: Judicial Review

Debate between Stewart Hosie and Edward Argar

Wednesday 24th February 2021 Commons Chamber

[Edward Argar]

I am grateful to my hon. Friend. In answer to his first question, at the start of the pandemic, roughly 1% of the PPE used in these settings was produced in this country. Due to the incredible efforts of businesses and individuals across the country—and, I must say, of civil servants and officials in Government, who are often the unsung heroes of the pandemic—up to 70% is now being supplied by this country. He is absolutely right that transparency is important. It is hugely important, and we respect it and take it very seriously, but I make no apologies for what I and the Secretary of State consider to be the most important thing, which is doing whatever is necessary to save lives in the course of this pandemic.

[Stewart Hosie (Dundee East) (SNP) [V]]

I am glad the Minister mentioned transparency, because of the £15 billion PPE contracts awarded up until last October, barely £3 billion were properly published, and we had £252 million given to a finance company, £108 million to a confectionery supplier and £345 million to a pest control company—a catalogue of cronyism, described variously as a “wholesale failure”, a “dismal failure” and a “historic failure”. It was a process that deprioritised compliance and has ended up with the taxpayer, in some cases, buying expensive and unusable PPE. Ultimately, the Cabinet Office is responsible for the co-ordination of the cross-Government response to covid-19. So let me ask the Minister when the Minister for the Cabinet Office and, indeed, the Prime Minister were first made aware that failure to properly publish details of PPE contracts might be unlawful?

[Edward Argar]

I am grateful to the right hon. Gentleman. He will appreciate that some of the contracts which some colleagues have alluded to remain subject to separate litigation before the courts, including some by the Good Law Project, which I will refer to as the GLP as I suspect it may come up a number of times and it might save a few minutes in my answers. I hope he will understand that I will avoid straying into something that may still be before the courts, because I do not want to show any disrespect for the legal process. He talked about the number published and where we have got to now. That will be some of the information put before the judge on Friday as per his request, but for the latest figures that are in the public domain, which were covered in the judgment and indeed more broadly, I think 100% of the contract award notices have been published, and we are up to 99% under regulation 108 on the latest figures I have. As the judge said, the overall picture does show the Secretary of State

“moving close to complete compliance.”

In respect of the right hon. Gentleman’s broader point, I would expect that Ministers in my Department—which is why I am here—as well as Ministers in the Cabinet Office, will have followed the process very closely.