PARLIAMENTARY DEBATE
Covid-19: Purchasing Effort - 3 February 2022 (Commons/Commons Chamber)
Debate Detail
A little over two years ago, we and the whole world found ourselves in unprecedented circumstances. We were faced with a virus about which we knew very little, but we knew from day one that our absolute priority was to save lives and protect our most vulnerable. Throughout the pandemic we have worked night and day to make sure those performing heroics on the frontline have the protection they need. This includes making the tough but necessary decisions needed to keep the country safe.
With the pandemic pushing health systems across the world to breaking point, we acted quickly and decisively to protect the NHS and to help it continue providing world-class care to the public. In a highly competitive global market, and with many countries imposing export bans, we were none the less able to secure the personal protective equipment needed. We secured billions of items of PPE, we obtained 30,000 ventilators by the end of June 2020 and we delivered more than 17.5 billion items to protect our frontline workers.
The supply of these vital items helped to keep the NHS open throughout the pandemic, but the scale of the challenge we faced in sourcing them should not be underestimated. The unique and unprecedented situation during the early days of the pandemic led to huge inflation in prices and intense global competition to secure scarce supplies. For instance, the average cost of nitrile gloves increased over sixfold at the height of the pandemic, compared with pre-pandemic levels.
At that time of national emergency, when lives were on the line, we simply had to change our approach to procurement and our appetite for risk. We had to balance the risk of contracts not performing and supplies being priced at a premium against the risk to the health of frontline workers, the NHS and the public if we failed to get the PPE we so desperately needed.
We make no apology for procuring PPE at the pace and volume we did, based on the information we had at the time. The action we took protected thousands of frontline healthcare workers in the NHS and social care. However, now that the world market for PPE has stabilised, the value of some categories of goods is inevitably much lower than the price at which they were originally purchased.
I reinforce to the House that 97% of the PPE we ordered was suitable and fit for use, with only a small proportion deemed unsuitable, and we are actively seeking to recover costs from suppliers wherever possible in those cases. Throughout the pandemic, the Department’s anti-fraud unit acted quickly to investigate all allegations of fraud, and we will be looking to recover any money for damaged or inadequate stock.
We are now in a position where we are confident that we have sufficient stock to cover all future covid-19-related demands, even in the face of the omicron variant. The PPE stocks we secured allowed us to meet demand through 2020-21 and 2021-22, and our existing PPE stocks will continue to support us throughout 2022-23.
We will keep working to maximise value from our stockpile, as the high standards of protection we have set for NHS workers mean that some of it may be able to be used in alternative settings. The Department has set up a redistribution team to identify alternative uses for stock that we do not intend or expect to use. For example, we are donating masks to both the Department for Transport and the Department for Education to aid compliance with face covering requirements on public transport and to support schools following their reopening in March 2021.
Medical professionals in my Department have also been working closely with colleagues in medical surveillance authorities to review stock that has exceeded its manufacturers’ use-by date but is not necessarily unusable. We have also begun a tender for a third-party medical laboratory to provide official testing of PPE products, with a view to extending their shelf life.
During the pandemic, we have taken steps to strengthen this country’s PPE supply chain, including manufacturing more PPE here in the UK. We have now signed contacts with more than 30 UK-based companies, reducing our reliance on manufacturers overseas, and we now have high confidence that we have sufficient stock to cover all future covid-19-related demands.
Getting PPE to those who need it has been one of the toughest logistical tasks of the pandemic. We make no apologies for taking the steps that were necessary so that we could save lives and protect this country in its time of need.
I commend this statement to the House.
The Department of Health and Social Care snuck out its annual accounts on the final day on which they were legally required, 10 months after the end of the financial year, and, I am sure by total coincidence, at 5.30 pm on the day Sue Gray published her update. Buried on page 199 was the revelation that the Department lost a staggering £8.7 billion on PPE. That is more than two thirds of the Department’s total spend on PPE written off as losses, double the amount it is spending on the hospital building programme, and almost as much as we spend on the salaries of every nurse in England for an entire year. Why? Because the PPE was unusable, going out of date, and bought in at eye-watering prices because the Government were in a state of desperation having run down our supplies before the pandemic arrived.
We know that many Conservative Members privately—sometimes even publicly—agree with Labour that the national insurance rise is an unfair hit on working families facing a cost of living crisis. How will they explain to their voters that, taken together with the £4.3 billion they handed out to fraudsters, this Government have thrown away more than a year’s receipts of the national insurance rise that they are now imposing on working families?
It is not just that the Conservatives are the party of high taxes because they are the party of low growth; they are the party of high taxes because they are the party of waste and incompetence. Think of what the NHS could have done with those funds. It could have reduced waiting lists and waiting times, improved access to GPs and rebuilt hospitals for the 21st century.
Of course covid came as a shock, but that does not explain why the Conservative Government ran down Britain’s supply of PPE before the pandemic, leaving us exposed to price hikes and profiteering. Perhaps the Minister can explain why a global pandemic necessarily leads to Conservative party donors and the former Secretary of State’s pub landlord receiving special treatment and hundreds of millions of pounds of taxpayers’ money.
It is not just PPE. Why did the Department fail to collect shipments from ports on time, costing taxpayers £111 million in additional fees? Why did the Department fail to pay its bills on time and incur late fees of £1.6 million as a result? Why did the Department spend £250 million on testing materials, ventilators and medical equipment, none of which can be used?
Is not it the case that when this Conservative Government thought no one was watching, they abandoned any pretence of being careful stewards of public finances, bunged millions to their mates and donors, and now working families are footing the bill? What would Mrs Thatcher, the grocer’s daughter, whose father instilled in her the value of thrift, make of this lot?
Is not the truth that the Conservative party has changed? You cannot trust this Conservative party to show respect to the people or to Parliament. You cannot trust this Conservative Party to keep taxes low. You cannot trust this Conservative Party to spend taxpayers’ money wisely. Indeed, the only thing that has not changed about the Conservatives is the age-old truth that you cannot trust the Tories with the NHS.
The hon. Gentleman raised a number of important points. He cited Mrs Thatcher, and suggested that the Government had changed their position. If we are talking about sudden changes in position, I feel that I should quote the present shadow Chancellor, the hon. Member for Leeds West (Rachel Reeves)—formerly shadow Chancellor of the Duchy of Lancaster—who, in April 2020, wrote to my right hon. Friend the Chancellor of the Duchy of Lancaster:
“We need Government to strain every sinew and utilise untapped resources in UK manufacturing, to deliver essential equipment to frontline workers. This must be a national effort which leaves no stone unturned.”
She was right. I agreed with her sentiment then, and I still do—and we did do that—but it appears that the Opposition do not agree with it any more.
Let me turn to the hon. Gentleman’s other points. He kept suggesting—it makes a good headline for him, I am sure, but sadly I fear it is simply inaccurate—that this is money lost or wasted. It is not. As the hon. Gentleman knows from his days as a shadow Treasury Minister, this is a reflection of buying PPE at the height of the market, at the height of a global pandemic—
The hon. Gentleman should also be aware that the vast bulk of that £8.7 billion is down to exactly the same reason: PPE purchased at the height of the market. Now that we have a stable market, we have a sustainable supply. I make no apologies, and I know that my right hon. and hon. Friends will make no apologies, for doing exactly what the shadow Chancellor said we should do, which was to strain every sinew to make sure that the NHS had the PPE that it needed. We achieved that.
The hon. Gentleman was also wrong to say that the money was thrown away. He knows that that is not what has happened here. He knows that this is about stock that has been written down in value, not written off. He knows that the vast bulk of that remaining is fit for use. We set very high standards in the NHS, but it is fit for use in other settings, and we are ensuring that we explore those other avenues, so that it can be used.
The hon. Gentleman talked about pub landlords. He will have heard my right hon. Friend the Member for West Suffolk (Matt Hancock) make this point in the Chamber. No contract was awarded to that individual, so I would caution him to be a little bit careful about the allegations he makes, and to check his facts before he does so.
Let me now turn to one of the broader themes raised by the hon. Gentleman. He talked about running down PPE stocks. Can he name any country in Europe that did not also have to buy vast amounts of PPE at the height of the pandemic, at the height of the market? This pandemic was unprecedented. We learned more about it with every day that passed. When we first started purchasing PPE, we were confronted with horrific pictures from hospitals in Bergamo in Italy. We saw the challenges that were faced, and we moved fast to ensure that our frontline had what it needed. We strained every sinew, and we got the PPE that our country needed.
Does the Minister believe that wasting all that money spent on PPE is a sign of good governance, when £2 of every £3 spent on VIP lane contracts was wasted due to so-called errors in supply? Now hard-working people will be taxed £12 billion by this Government to pay for their mismanagement, when the Bank of England has just told us that UK households must be warned to “brace themselves” for the biggest annual fall in living standards in 30 years, since records began, and inflation is set to soar to 7%. Why is his Government not vigorously pursuing companies that provided £9 billion-worth of useless PPE equipment to ensure that they pay it back? Will he assure the House that his Government will pursue that with complete vigour?
Kleptocracy is defined as a situation where politicians enrich themselves or their associates through the funnelling of public money and assets to their connections outside the rule of law—a statement we know all too well in this House. Given that the UK Government’s VIP, Tory crony fast lanes for Tory party associates have been declared unlawful in the Court of Session and seen billions of pounds wastefully funnelled to politically connected friends of this Tory Government, does the Minister agree that his Government are fast becoming a kleptocracy?
I will pick up one point I missed with the shadow Secretary of State, who I hope will forgive me. He mentioned ventilators, and I apologise for not answering that point. In the case of ventilators, we followed the scientific advice at the time, which was that ventilators were the most effective way of treating those who were severely ill. Thankfully, due to amazing advances by our clinicians and scientists and to the action taken by this Government, we did not need them and the treatments available improved significantly. Again, I make no apologies for our being prepared for all eventualities.
To conclude on the contribution of the hon. Member for Coatbridge, Chryston and Bellshill (Steven Bonnar), I reiterate the same thing: we make no apologies for having strained every sinew—in a global pandemic, at the height of the market, when some countries were imposing export bans—to purchase the PPE to protect our frontline workers. I also pay tribute to the officials who worked flat out, often through the night, sourcing the PPE. They were the ones assessing it, and they were rigorous in their assessments. I put on record my tribute and my gratitude—
“Those who look after the sick and the vulnerable deserve our protection, and getting PPE to them is the priority of all of us.”—[Official Report, 4 May 2020; Vol. 675, c. 412.]
She was absolutely right and remains right, and that is why this Government did exactly that. Protecting the taxpayers’ pound is hugely important. Equally, so too is procuring the kit that protects lives. In the unique circumstances that we faced at the time in 2020, I believe that this Government made the right choices.
The hon. Lady rightly talked about the sum of money and highlighted the impact. She is right that £8.7 billion is a very significant sum of public money, but she also must acknowledge that that £8.7 billion was not wasted, because the PPE exists. This is an accounting point about what the purchase price was compared with the value now, with a stable marketplace for that. Only a very small fraction of that stockpile has been deemed not fit for use and, in those cases, we continue to investigate, through contractual mechanisms and elsewhere, what we can do to recover that money.
To the hon. Lady’s point, first, it is not wasted. As I made clear, it purchased PPE. There is a small amount in these accounts which has been made clear. The shadow Secretary of State said that it was snuck out. If I recall, I tabled a written ministerial statement to draw attention to these issues to be open and transparent with the House, as I always endeavour to be. We did whatever was needed at the time, in the context of the highly inflated pricing in the midst of a global pandemic.
More broadly, the hon. Lady touched on NHS funding and pressures. I appreciate that she was not a Member of this House at the time, but this Government have put in record funding for our NHS. One of the first Acts after the 2019 election enshrined in law a £33.9 billion increase by 2023-24, and we are also putting in place the health and care levy to both assist our NHS and provide that sustainable footing for social care in the future. I acknowledge entirely that she was not a Member of this House, so it would be wrong to draw any inference as to how she may have voted, but I want to put that record investment on the record.
I also gently say that the Liberals’ stance on this issue shows, even by their standards, a degree of political contortion and a stretching of credibility. I think I am the only Member who has been a Health Minister throughout this pandemic, and I recall them desperately calling in 2020 for whatever it took to get and buy more PPE to protect the frontline. I agreed with that stance, but now they are suggesting that the Government got it wrong by prioritising whatever it took to get the PPE that the frontline needed.
The Minister said in his statement that 97% of the PPE ordered was suitable for use. Obviously, that means that 3% was not. He also said that the Government are actively seeking to recover costs from suppliers where possible in those cases. Does he not realise that that is a very weak way of responding to that challenge? What safeguards were put in place in those contracts, and will he publish for the House updated data on suppliers that are not refunding the taxpayer—suppliers that took public funds and did not deliver the goods?
I understand the pressure that the Department of Health and Social Care was under at the outset of the pandemic to ensure that staff were not taking their lives in their own hands when they entered hospital. But Minister, reports of £8.7 billion losses are astounding. Will there be a full investigation into the scale of loss and the reasons for the loss? I understand the problems at that time—I really do—but think of the good that that money could have done to address waiting lists and new cancer drugs. Minister, what has happened grieves me in my heart, and I suspect it grieves you in your heart—
On the amount that is, for want of a better way of putting it, lost through goods not being fit for use, that is £673 million, but that is what we are investigating through those contract dispute resolution mechanisms and through anti-fraud work. The other amounts of money in here did purchase PPE, which was delivered and which we have. Different settings require different standards of PPE, so some that was purchased may not be of the standard for the NHS but can be used elsewhere. We are exploring all options to make sure that the PPE we have, where it can be, is used.
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