PARLIAMENTARY DEBATE
Eurotunnel: Payment - 4 March 2019 (Commons/Commons Chamber)
Debate Detail
The best way to ensure a smooth and orderly exit from the EU, both for the NHS and for the wider economy, is to support the deal that the Attorney General is currently finalising. Anyone in this House who cares about the unhindered supply of medicines should vote for that deal, but leaving the EU without a deal remains the default position under the law, and it is incumbent on us to keep people safe. It is therefore vital that adequate contingency measures are in place for any Brexit scenario.
Preparing for a no-deal exit has required significant effort from the NHS, the pharmaceutical industry and the whole medical supply chain, and I pay tribute to their work and thank them for their efforts on these contingency measures. The settlement struck between the Government and Eurotunnel last week is an important part of these measures. Because of the legal action taken by Eurotunnel and the legal risks of the court case, it became clear that, without this settlement, we could no longer be confident of the unhindered supply of medicines. Without this settlement, the ferry capacity needed to be confident of supply was at risk. As a Government, we could not take that risk, and I doubt anyone in this House would have accepted that risk, either. With this settlement we can be confident, as long as everyone does what they need to do, that supply will continue unhindered. Under the settlement, Eurotunnel has to spend the money on improving resilience, security and traffic flow at the border, benefiting both passengers and business.
The Department for Transport, on behalf of the whole Government, entered into these contracts in good faith. Our duty is to keep people safe, whatever complications are thrown up. Although we continue to plan for all eventualities, it is clear that the best way to reduce all these risks is to vote for the deal in the days to come.
The Transport Secretary’s decision to bypass procurement processes in awarding a contract to Seaborne Freight, a ferry company without any ships, breached public procurement rules, and Eurotunnel had the Government over a barrel. Will the Minister now detail the total cost to taxpayers of this decision, including legal costs? How much money will be paid up front?
Eurotunnel will seemingly make Brexit-related improvements at Folkestone. Can the Minister say exactly what sort of agreement the Government have with Eurotunnel? What makes him think that this contract with Eurotunnel will not be challenged on anti-competition grounds? A former Department for Transport adviser said:
“there is a risk it could be construed as another piece of public procurement without open and transparent competition.”
That would risk further legal action and yet more public money being squandered.
Even in this golden age of ministerial incompetence, the Transport Secretary stands out from the crowd. He leaves a trail of destruction in his wake, causing chaos and wasting billions of pounds, yet he shows no contrition, no acknowledgment of his mistakes and no resolve to learn and improve. He is now ridiculed in The New York Times. The mayor of Calais has banned him from his town. The Transport Secretary has become an international embarrassment. The Prime Minister is the only person in the country who retains confidence in this failing Transport Secretary, and she does so only because of her own political weakness. The public deserve to know: how many more calamities is the Prime Minister prepared to tolerate? How many more billions of pounds will she allow him to waste before saying, “Enough is enough”? This country cannot afford this Transport Secretary. He should be sacked without delay.
Apparently, we hear that this is not compensation for Eurotunnel but a contract for vital services. If they were so vital, why did it take Eurotunnel going to court to get a contract? Why was Eurotunnel overlooked in the first place? The secrecy on this is a real concern. How much documentation is still hidden away from public view? If the no-deal contract is not invoked, how much money will still be paid to Eurotunnel? Why on earth would the Health Secretary entrust the transportation of life-saving medicines to the Transport Secretary?
Bechtel is set to sue the Government over the HS2 tender process. What other departmental procurement risks still exist? After his efforts at the Ministry of Justice cost us £600 million, the Transport Secretary has allowed Virgin Trains East Coast to walk away owing £2 billion; he has blamed Network Rail for mishaps when he is in charge of the organisation; and he has culpability for Southern rail, for the £38 million Northern rail timetable fiasco and for the £800,000 ferry due diligence contract, where due diligence was not carried out on the company with no ships. He has tried to argue that the Seaborne fiasco has not cost the taxpayer any money. Only for this Transport Secretary can this £33 million be just the tip of a financial iceberg. What does it take for him to be sacked—or to do the decent thing and walk away?
“I am confident that our process was lawful, and obviously the Department and I acted on legal advice in determining how to take that process forward”.
If we were so confident in that legal advice, why was this settlement reached at all? Actually, is this not an admission of a catastrophic failure in stakeholder management?
Since the Secretary of State insists that this is about the supply of medicines, I am going to ask him, for the second time in a fortnight, about radioisotopes. Last time he said that there was no problem because we could fly them in. Can he now tell us how we can get radioisotopes supplied to us if we are not a member of Euratom?
I am going to be more charitable to the Government, because I think they blatantly realise that having no Secretary of State for Transport is infinitely better than having the one they have got. We have listened to the Secretary of State for Health and Social Care’s fairy tale about medicines today, but will he at least have the decency to admit that £33 million is a lot of money, especially to people facing hardship on universal credit, the disabled and the low-waged?
While we are at it, will the Secretary of State for Health and Social Care come to the Dispatch Box and explain that he has inadvertently misled the House by saying that this has nothing to do with Seaborne Freight? It has everything to do with that contract. That was the reason Eurotunnel took the Government to court in the first place. He must put the record straight.
As to what the Secretary of State said about the question not being about Seaborne Freight, I think I will say that he has placed his own interpretation on the matter, and colleagues will form their own assessment. I thought that most of the inquiries were about legal action flowing from the cancellation of the contract, but the Secretary of State does have a legitimate public policy interest in the matter, both as a member of the Government and because of his regard for the safe delivery of medicines. Some people will think that he was absolutely right, and others will think that his interpretation of matters was a tad quirky, but nevertheless he has offered us his own assessment and colleagues can now assess it at leisure, possibly over their tea.
“I do not know whether she thinks it would have been worth bearing the risk of a court case, which may well have struck down the capacity to make sure that people who have serious and life-threatening conditions can get the medicines that they want. She implied that she was against such assurances”.
I did no such thing, and you were here to hear it, Mr Speaker. I asked very specifically why we no longer have confidence in the legal advice that the permanent secretary herself told the Public Accounts Committee she did have confidence in. I do not take particularly kindly to men putting words in my mouth, so I wonder what recourse I have to get a retraction.
I understand that the hon. Gentleman—I mean this very sincerely and, not least, for the benefit of those who are listening to our proceedings—is disquieted, not to say irritated. However, I suppose I am making the point that I have often made to Members on both sides of the House, including, some months ago, to the hon. Member for South Leicestershire (Alberto Costa), who very sagely took my advice last week: persist, persist, persist. That is the essence of success in parliamentary endeavour—not to make a point once but to pursue one’s goal on a continued, indefatigable, and, if necessary, remorseless basis. I think that the hon. Member for Kilmarnock and Loudoun (Alan Brown) has become accustomed to such an approach over the past four years in which he has served as a Member of the House.
I thank the Members who have raised points of order and the Secretary of State for proffering his replies. We will have to leave it there for today.
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