PARLIAMENTARY DEBATE
Covid Contracts: Judicial Review - 24 February 2021 (Commons/Commons Chamber)
Debate Detail
Our team worked night and day to procure PPE within very short timescales and against the background of unparalleled global demand. That often meant working at incredible speed, especially in the early months of the pandemic, to secure the vital supplies required to protect NHS workers and the public, which we did.
Let me turn specifically to the High Court judgment. There has been a lot of confusion about what the ruling said and did not say, and I welcome the opportunity to clarify that to the House today. The High Court case did not look at the awarding of the contracts; rather, it looked at the timing of the publication of the details of contracts awarded. The court ruled that at this time of unprecedented pressure, contract award notices were not all published in the timescales required by the regulations. However, it also found that there was no deprioritisation policy in that respect in the Department. As we set out to the court, the delays were caused by the workload involved in responding to one of the greatest threats to public health that this country has ever seen.
We take our transparency requirements very seriously, and it is important that I put on the record that we of course take the judgment of the court very seriously and respect it. We are working with colleagues across Government to implement the recommendations set out in the report published earlier this month by the Public Accounts Committee, chaired by the hon. Member for Hackney South and Shoreditch (Meg Hillier), but as we do that, we will keep acting quickly and decisively to respond to this deadly threat, and we continue to do all we can to help save lives.
The Government have been taken to court, and they lost, which cost taxpayers even more money. The Home Secretary once said that she wanted people
“to literally feel the terror at the thought of committing offences.”
She does not have to look to the streets to find law-breakers; she only has to look across the Cabinet table. This Government are not terrified of breaking the law, because they think they are above the law.
Now that the Government have lost in court, I ask the Minister: what was the cost to taxpayers of fighting this case? Will the Government agree today to publish the names of all businesses in their VIP fast lane and say how they got on that list? Will all overdue contracts be published by the end of this week? When will the management consultants hired locate the billions of pounds of PPE that the Government seem to have misplaced? When will clawback be used to get back taxpayers’ money for contracts that have failed to deliver? Will the Minister take this opportunity to apologise to the doctors, nurses, care workers and other frontline workers who did not have the PPE that they needed, and who had to make makeshift PPE—because, contrary to what the Health Secretary said, there was a shortage of PPE and those working on the frontline were not protected?
While he is here, will the Minister, Serco’s former head of public affairs, reveal the mystery of why the Government created Serco Test and Trace, rather than a true NHS test and trace embedded in our communities? NHS workers, care workers and taxpayers deserve better. We deserve the end of crony contracts from this Government.
The hon. Lady alleges impropriety and inappropriate behaviour—wrong. The National Audit Office report was absolutely clear that there was no evidence of any inappropriate behaviour, and indeed no court has found this. I highlight to her that the judgment was a declaratory judgment, and it stated that there had been a breach of the regulation 50 requirements. The judge subsequently highlighted, in paragraph 149:
“But the overall picture shows the Secretary of State moving close to complete compliance. The evidence as a whole suggests that the backlog arose largely in the first few months of the pandemic and that officials began to bear down on it during the autumn of 2020.”
I remind the House, and indeed the hon. Lady, of the situation we faced back in April. There were 3,301 people in mechanical ventilation beds, 21,307 people in hospital with covid, and at the beginning of April, according to our best understanding of positive cases at the time, the average number of positive cases and patients in hospital was doubling every seven days. In those circumstances, I make no apologies for the Government doing everything in our power to ensure that the NHS and frontline workers did not run out of PPE. As the National Audit Office has acknowledged, there was no national shortage of PPE at the time and throughout the pandemic.
The hon. Lady asked a number of questions. She talked about the current situation regarding publication, compliance and costs. As I have mentioned to her briefly before, there is an element of this case that is yet to be concluded, as some information is due to be provided to the judge on Friday. We will do exactly that, and the information will be made public when it goes to the court. We respect the court’s role in the process, but I expect the judge to have that published in a couple of days’ time.
On the priority route, if I recall correctly, many Members on both sides of the House requested expeditious consideration of offers of help, and I am grateful to all who made those offers. Every one of those went through an eight-stage process, run by civil servants, entirely appropriately. They checked the appropriateness of the PPE and the organisation supplying it, and conducted due diligence. Indeed, as I recall, the hon. Lady herself, on 22 April, published a letter that she had sent to the Chancellor of the Duchy of Lancaster—it was helpfully analysed at the time by the Guido Fawkes website—sharing some of her suggestions of companies or individuals that should be put through rapid assessment. I acknowledge that she said that there should be assessment and due diligence, but she asked that they be assessed rapidly. I believe that many Members of the House took the same approach. In that letter, she concluded:
“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, but she no longer appears to agree with herself.
“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.
Further to the question from the Father of the House, my hon. Friend the Member for Worthing West (Sir Peter Bottomley), can my hon. Friend the Minister give greater detail of the extent of the increase in domestic production of PPE in this country so that we have security of supply?
“moving close to complete compliance.”
That is exactly what we will continue to do.
Finally, I know that transparency and the timely publication of the data are important to the hon. Lady. I highlight one of her own Green councillors in Brighton and Hove who, in a recent written answer on that council’s failure to publish its financial spending figures since, I think, last June, said that the council
“quite rightly, prioritised paying our suppliers and providers as quickly as possible”,
and that it was
“prioritising payment of suppliers and providers over production of this information.”
“In a case where there is already a claimant with standing, the addition of politicians as claimants may leave the public with the impression that the proceedings are an attempt to advance a political cause”.
Does my hon. Friend agree that this recent practice of trying to extend politics through court cases is becoming quite damaging to our democracy as a whole, particularly when technical judgments are then deliberately misrepresented, as seems to have happened in this case?
The hon. Lady also touched on and made a very particular point about Serco—I should have answered this point when the shadow Minister mentioned it, so I hope she will forgive me for coming back to it now. Let me make one point, which I hope the hon. Member for Streatham (Bell Ribeiro-Addy) will be aware of, and I am sure she was not suggesting anything to the contrary. As was made very clear on the “Today” programme last year, I had no involvement with those contracts in any way, shape or form. Although I left the company seven years ago, although I was never a director of that company, and although I have no ongoing links with it, so there would have been no conflict, I none the less had no involvement at any point or at any level with those contracts and I continue to adopt that position. I hope that that is helpful to her in clarifying that point.
The Secretary of State highlighted at the weekend—I think this is the latest figure—that the publication of notices was, on average, 17 days over the 30 days required. I do believe it is important that transparency is adhered to, but I also remind the hon. Lady that it is extremely important to highlight why this happens. That is why we filed the court papers and defended the case as we did, because it is hugely important for the Court to see why this occurred. The Government continue to do what I believe the public expect us to do: focus on protecting the frontline.
The hon. Lady raised a very specific issue. It has been made clear that neither the Health Secretary nor any other Minister had any involvement in the assessment, the due diligence, or any decisions in respect of that contract.
The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) raised Exercise Cygnus, which has come up a number of times. It is important to remember that Exercise Cygnus did not look at tackling a novel pandemic; it looked at influenza specifically. The PPE required for dealing with a disease of covid’s nature is very different from that required for flu. That exercise had, as one of its predicated actions, the swift arrival of antivirals to be delivered to tackle the flu; such antivirals did not exist until much later in the case of covid. It is important that we learned from Exercise Cygnus, but we should be careful about reading it directly across as representing a blueprint for how to tackle a pandemic of this sort.
On the hon. Lady’s final point about transparency, as I have made clear, the Government remain committed to transparency and to the publication of contracts, as required under the regulations.
“must be anchored in law and be implemented by strong public institutions, with the involvement and under the oversight of members of parliament, anti-corruption bodies, civil society and the private sector.”
It is clear that hon. Members have numerous questions on these contracts, so will the Minister now advocate such action as backing my Ministerial Interests (Emergency Powers) Bill to make sure that Parliament can scrutinise the Government’s actions and that Members of this House and the public can be confident that there is no suggestion of any corruption taking root?
“The NHS provider organisations we spoke to told us that, while they were concerned about the low stocks of PPE, they were always able to get what they needed in time.”
My bigger point is on the transparency of the contracts. The Minister has talked breathlessly about the urgency at the early stage of the pandemic. Let us be clear: by the end of the summer and the autumn, many of the contracts had still not been published. The civil service is usually good at record-keeping and transparency, but on this occasion there was a failure. He should have the guts to come to the House, apologise, and promise it will not happen again. More transparency, not less, is vital when billions of pounds are being spent, in haste in a pandemic.
The hon. Member for Hackney South and Shoreditch made a broader point about transparency, and of course it is a vital point. I believe it was the hon. Member for Oxford West and Abingdon (Layla Moran) who highlighted trust. Trust is always the currency of politics; it is always the one thing that everyone requires, in government and in this House. It is important that that is fostered by as much transparency as possible. The judgment found that in a number of cases the Government did not meet the 30-day deadline. The hon. Member for Hackney South and Shoreditch asks for an assurance now, and I can give her the assurance that the Government are doing everything they can to ensure that regulation 50 is complied with, and complied with fully.
The hon. Gentleman raised a very specific point, which I want to address, because he talked in his question not just about NHS trusts, but quite rightly about those working on the frontline in social care settings and the PPE they needed. He quotes accurately, if my recollection is correct, from the NAO report. One of the factors here was that traditionally, social care settings are private businesses in most cases and procured their PPE directly in private contracts with their suppliers. That is one of the reasons why, as I mentioned in my opening remarks, during the early phase of the pandemic we moved from supplying 226 trusts with PPE to making that service available to 58,000 or so settings to get PPE to social care. That was a reflection of the Government’s commitment and work to make sure that we could use centralised procurement and centralised supply to help support the social care sector get what it needed.
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