Oral Answers to Questions

Chloe Smith Excerpts

Wednesday 20th March 2013 Commons Chamber

[Julian Smith (Skipton and Ripon) (Con)]

8. What progress he has made on engaging small businesses in public procurement.

[The Parliamentary Secretary, Cabinet Office (Miss Chloe Smith)]

It is this Government’s policy to dismantle the barriers facing small companies to ensure that they can compete for contracts on a level playing field and that they can better grow. Direct spend with small and medium-sized companies across Government has steadily increased since 2010 as a result of the steps we have taken, and we have required all Departments to put in place plans to ensure that their spend with SMEs continues to increase.

[Anas Sarwar]

Does the Minister think that it is acceptable for large multinational companies to receive millions of pounds in Government grants while avoiding paying a single penny in corporation tax? If not, what changes will she make to procurement legislation to ensure that we stop this bad practice and instead increase opportunities for small and medium-sized enterprises?

[Miss Smith]

I think that the hon. Gentleman will find that much of what he seeks is covered in debates later today. We have recently announced measures to ensure that the companies we deal with as a Government pay their fair share of tax, and rightly so.

[Simon Kirby]

I would like more businesses in Brighton to have contracts with the Government. Will the Minister make data available on a constituency level regarding which businesses do business with the Government?

[Miss Smith]

Since the general election Government have become much more transparent about the business they do, and all contracts over £10,000 are now published online at Contracts Finder. My hon. Friend will also find pipelines covering infrastructure and Government construction that will help him with a lot of data. Although we cannot yet release these data specifically at constituency level, I am very keen to make them available, and I look forward to working with him to make that a reality.

[Julian Smith]

The Minister has done a lot of excellent work on fair payment, but how do we make it easier for our smallest businesses, and our smallest service businesses, to win Government contracts?

[Miss Smith]

Central Government policy is to pay undisputed invoices within five days and to pass 30-day payment terms down the supply chain as a condition of contract. That has earned this Government the title of fair payment champion, which is very important. We encourage small and medium-sized enterprises to use the mystery shopper service to “shop” poor practice where they find it. My hon. Friend will also know that we have streamlined the procurement process, removed bureaucracy and increased transparency. We are challenging the traditional ways of buying and are ready to be held to account for that.

[Keith Vaz (Leicester East) (Lab)]

Does the Minister agree that if a company fails to deliver on a contract, it should be put on a list and not allowed to bid for any future contracts?

[Miss Smith]

As I noted in my previous answer, we believe in accountability and in being able to “shop” those examples where that occurs. We take action on every such example and I am confident that that will cover what the right hon. Gentleman seeks.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

Does my hon. Friend agree that the sheer cost inflicted on smaller businesses trying to bid for public contracts is prohibitive? What are the Government doing to reduce the cost of bidding for public contracts? Unless we reduce the cost, they simply will not bid.

[Miss Smith]

My hon. Friend is absolutely right. We have streamlined the procurement process by introducing faster and simpler procedures. We have removed bureaucracies such as pre-qualification questionnaires for contracts below the European Union threshold. We are also continually finding ways to help SMEs and others to navigate their way across Government. We look forward to continuing to work with my hon. Friend’s Committee to do more of that.

[Mr Gregory Campbell (East Londonderry) (DUP)]

What progress is the Government making with the SME sector’s representative bodies in addressing barriers?

[Miss Smith]

I will answer that by quoting evidence submitted to the Public Administration Committee by the Market Research Society, which said that it

“applauds the activity of the Crown’s Representative for SMEs…and the ‘Mystery Shopper Scheme’ enabling SMEs to report examples of good and bad practice”.

Those are ways in which we are holding our own systems to account. We want to do more and it is vital to get SME representatives around the table to do so. I shall be doing more work on that this afternoon.

[John Pugh (Southport) (LD)]

6. What his policy is on the use of teleworking and working from home in Government Departments; and if he will make a statement.

[The Parliamentary Secretary, Cabinet Office (Miss Chloe Smith)]

In order to deliver services that meet the needs of the public, the civil service—just like comparable private sector employers—needs a flexible and dynamic workforce. We recognise that remote and home working can bring significant benefits, such as increased productivity, business resilience, work-life balance and well-being. Business units in every Department will need to make such decisions according to business need.

[John Pugh]

Does the Minister recognise that young working mothers are the principal beneficiaries of teleworking, and will she do more to keep this pool of talent in the civil service?

[Miss Smith]

My hon. Friend makes an excellent point. This Government are doing plenty to help that group and we made child care announcements yesterday and today. The benefits of flexible working can also be seen on a much broader level: research recently suggested that British businesses could save £34 billion by taking on such an approach.

--- Later in debate ---

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

11. What steps his Department is taking to reduce the level of late payment by public sector contractors to small and medium-sized enterprises.

[The Parliamentary Secretary, Cabinet Office (Miss Chloe Smith)]

As I have noted, Government policy is to pay undisputed invoices within five days and to pass 30-day payment terms down supply chains. The Crown representative team in the Cabinet Office is encouraging prime contractors to do that more quickly on a voluntary basis. We have tasked Departments to manage their contracts to ensure that prime contractors pay sub-contractors within 30 days.

[Debbie Abrahams]

I am glad that the Government are now taking seriously late payments to small and medium-sized enterprises, after I received such a dismal response on the issue in 2011. When are the Government going to ensure that public sector contractors have the need to pay SMEs in their supply chain promptly in their contracts?

[Miss Smith]

I congratulate the hon. Lady on the award that she has won in connection with her work on this matter. My previous answer covered what the Government are doing. We are extremely keen to see good practice pushed throughout the supply chain. We are ensuring that more business goes to SMEs, which is good for growth. All told, that is a good thing and something of which the Government can be proud.

[Jonathan Ashworth (Leicester South) (Lab)]

T1. If he will make a statement on his departmental responsibilities.