Oral Answers to Questions

Debate between Mark Pawsey and Oliver Dowden

Wednesday 24th April 2019 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

1. What steps he is taking to ensure that all Government suppliers and subcontractors are paid on time.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

It is important to all suppliers, not least small businesses, that they are paid on time. That is why I have announced that, from this September, we will exclude suppliers from winning contracts if they fail to pay their subcontractors on time. Just this month, I contacted all suppliers to remind them of this intention.

[Mark Pawsey]

I welcome what the Minister has just said, but a significant proportion of Government procurement is on construction projects, where there are often poor payment practices, such as those exposed during the collapse of Carillion. The Federation of Small Businesses’ “Fair Pay Fair Play” campaign, which carries the message that everyone deserves to be paid on time, is asking for those projects to be made the subject of separate project bank accounts. Is the Minister considering that?

[Oliver Dowden]

Yes. My hon. Friend raises an important point. The Government already use project bank accounts on all construction projects, unless there are compelling reasons not to do so. That is just one way of ensuring our underlying objective of prompt and fair payment. It sits alongside initiatives such as paying our suppliers on time, excluding late payers and appointing prompt payment non-executive directors in all Departments.

Oral Answers to Questions

Debate between Mark Pawsey and Oliver Dowden

Wednesday 16th May 2018 Commons Chamber

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

Small businesses are the engine of our economy, and we are determined to level the playing field so that they can win their fair share of Government contracts. That is why, last month, I announced a range of new measures, including consulting on excluding bids for major contracts from suppliers who fail to pay their subcontractors on time and giving subcontractors greater access to buying authorities to report poor payment performance.

[Mark Pawsey]

I thank the Minister for his answer, but I recently met small businesses at the Rugby branch of Coventry and Warwickshire chamber of commerce, many of whom told me that they were put off from tendering for public sector contracts by the complexity of the process. I know that Ministers have worked hard to break down barriers, so what steps is he taking to get the message across that there are real opportunities for business among small companies?

[Oliver Dowden]

My hon. Friend raises a very important point. As he says, we have already removed complex pre-qualification questionnaires from low-value contracts, but this afternoon I will again be meeting the small business panel, which represents small businesses up and down the country, and we will be discussing exactly how we can further simplify pre-qualification questionnaires and associated bureaucracy.

Oral Answers to Questions

Debate between Mark Pawsey and Oliver Dowden

Wednesday 21st February 2018 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

T4. Too few of our small businesses apply to sell their goods to Government because they are worried about the bureaucracy involved. What reassurance can the Minister give them and, specifically, what feedback is available to them when they do so?

[Oliver Dowden]

My hon. Friend makes an important point. Small businesses are the engine of our economy, and we are committed to supporting them in public procurement. That is why we have already streamlined our procurement processes to assist small businesses by, for example, abolishing complex questionnaires. Specifically in relation to too much bureaucracy, businesses can report such practices to the mystery shopper service.

Capita

Debate between Mark Pawsey and Oliver Dowden

Thursday 1st February 2018 Commons Chamber

[Oliver Dowden]

Behind the right hon. Gentleman’s question is an important point about the diversity of suppliers in this market. We do need to look to diversify further. That is why, for example, we have set a target that 33% of all our Government contracting should be with small and medium-sized enterprises—precisely to ensure that we have that greater diversity. On his point about state bail-out, we have done precisely the opposite of a state bail-out. Carillion went into liquidation, so its shareholders paid the price; because Capita has decided to stop paying dividends, its shareholders are paying the price. Therefore, it is not correct to say that the state is bailing them out in this situation.

[Mark Pawsey (Rugby) (Con)]

Is not the Government’s role to continue to act as a prudent customer and to continue to monitor their suppliers and the services provided? Right now, the best thing that the Government can do is to allow the company to get on with its plans to restructure its business.

[Oliver Dowden]

Yes, my hon. Friend is absolutely right. Capita and its executive and shareholders are responsible for Capita. Our responsibility as a Government is for the continued delivery of public services—to make sure that the services on which the public rely continue to be delivered. That is exactly what we did in respect of Carillion, and that is exactly what we are ensuring in relation to contingency plans for all our strategic suppliers, including Capita.