Public Procurement Processes

Tim Farron Excerpts

Wednesday 25th January 2023 Westminster Hall

[Mick Whitley]

Yes, I do agree with the right hon. Gentleman.

In December 2020, the Cabinet Office published a social value model that said there should be a requirement on Government Departments to evaluate social value when awarding contracts, and not, as previously, just to consider it. Yet when it came to publishing the Procurement Bill, there were no explicit references to social value, so Labour MPs and peers have raised it as something that should be integral to the Bill and the public procurement process.

Another problem with the Procurement Bill as it stands is that it contains no provisions to ensure that bad employers are prevented from winning contracts. Far too many bad employers exist and far too many of them profit from public procurement contracts. A decent Procurement Bill can address that with construction projects nationally and by legislating to tie local government contracts to a clear and fair employment charter of the kind that already exists in the Liverpool city region.

Contracting authorities should be obliged to build into every contract that involves even a penny of public money a cast-iron guarantee that fair employment practices and the right to trade union recognition will be respected. There are other aspects of public procurement, such as strict conditions regarding the need to meet our climate targets and helping to regenerate our country through a green industrial revolution, but I wish to finish on a very important principle that must be embedded into the reform of public procurement: a watertight mechanism to put an end to cronyism.

The Bill hands more powers to Ministers without any meaningful safeguards to ensure that decisions will not be determined by favouritism at best and cronyism at worst. This is not an abstract issue: it is, sadly, a real problem that has led to major scandals. While the country was rocked by the curse of covid, a VIP lane was opened to enrich friends of Conservative Ministers and donors to their party coffers. Taxpayers’ money was doled out without any proper scrutiny. As a result, orders of personal protective equipment were handed out to companies that had no track record of producing or providing medical equipment. More than half the £1.7 billion paid by the Government to politically connected VIP companies to supply PPE in the pandemic was spent on equipment that has not been used, according to new figures.

[Tim Farron (Westmorland and Lonsdale) (LD)]

The hon. Member is making a really important speech. He talked about NHS procurement, and social value must surely include saving lives. I chair the all-party parliamentary group for radiotherapy and last week we met oncologists, radiotherapists and cancer-centre managers. They say that one reason why we are not saving as many cancer patients’ lives as equivalent countries around the world is that we do not have a centralised procurement system for linear accelerators. As a result, we are 120 machines down on where we should be, and hundreds of machines are more than 10 years old. Does he agree that the Minister ought to consider central procurement, so that every part of the country has the up-to-date machinery to save lives through radiotherapy?

[Mick Whitley]

The hon. Gentleman makes a good point. The Government must be aware that the supply chains are too long. Instead of offshoring, they need to inshore.

Public money has been wasted on an industrial scale, and the ability of Ministers to throw taxpayers’ money away is now being codified in the Procurement Bill. Conservative peers voted down an amendment to ban the use of VIP lanes in the awarding of contracts. Together, my Labour colleagues and I will do our level best to change that and get the VIP lanes closed for good. The High Court has agreed with us and ruled the VIP lanes illegal.