Jacob Rees-Mogg
Main Page: Jacob Rees-Mogg (Conservative - North East Somerset)Department Debates - View all Jacob Rees-Mogg's debates with the Cabinet Office
(2 years, 2 months ago)
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The Minister for Brexit Opportunities and Government Efficiency (Mr Jacob Rees-Mogg)
Thank you, Mr Speaker; it is a rare treat.
Her Majesty’s Government are delivering an ambitious programme to seize the opportunities of Brexit and deliver growth and innovation across the United Kingdom. The Brexit Opportunities Unit co-ordinates those reforms in close partnership with other Departments, including by working towards our target to cut at least £1 billion of EU red tape to help businesses to innovate and grow.
Virginia Crosbie
Her Majesty’s Revenue and Customs, the Welsh Government and Isle of Anglesey County Council are all setting up new facilities in Holyhead to enforce post-Brexit port regulations, bringing much-needed new local employment to my constituency of Ynys Môn. How will the Brexit Opportunities Unit work with those organisations to gather feedback on their operations that can then be used to inform the review and to inform regulation and policy?
Mr Rees-Mogg
My hon. Friend has become the greatest champion that Ynys Môn has ever had; every time she asks a question in this Chamber, she is always promoting her fantastic and beautiful constituency. Her constituents are very lucky to have her as their Member of Parliament. Once again, as so often, she is absolutely right: we will be driven by data and evidence from the frontline, not simply copying what has been done in the past. We therefore all look forward to seeing what happens at Holyhead.
Fleur Anderson (Putney) (Lab)
May I associate myself with the remarks of the Chancellor of the Duchy of Lancaster about Ukraine? My thoughts are with the people of Ukraine and I fully support them in their sovereignty.
I welcome the Minister for Brexit Opportunities and Government Efficiency to his place. One result of Brexit is that we have an independent sanctions regime, so why have the Government not taken the opportunity before now to go further in their sanctions against Russia?
Mr Rees-Mogg
If the hon. Lady has had a chance to look at the annunciator, she will have seen that the Prime Minister will be making a statement at 5 o’clock. It is best that my right hon. Friend make the statement, rather than my trying to pre-empt him.
Brendan O’Hara (Argyll and Bute) (SNP)
Following this morning’s inexcusable attack on independent Ukraine, may I put on record the SNP’s unequivocal condemnation of President Putin and his actions, and repeat our support for and our solidarity with the people of Ukraine?
I, too, welcome the Secretary of State for fantasy island—sorry, the Minister for Brexit Opportunities—to his place. That was an easy mistake to make, particularly as he believes that Brexit is already a success and that there is no evidence that it has caused trade to drop, despite the Office for National Statistics reporting that UK exports to the EU have fallen by £20 billion in 20 months. How can we trust him to deliver growth when he has hitherto been unable to accept the evidence of the ONS and the experience of just about every exporter in the UK who is losing business while drowning in a sea of paperwork and bureaucracy?
Mr Rees-Mogg
I welcome the cross-party support for the actions that the Government are taking in regard to Ukraine, and the cross-party support for the people of Ukraine in these very difficult circumstances.
As regards the hon. Gentleman’s statement about exports, he may have missed the fact that there has been a pandemic. I know that sometimes the SNP does not pay careful attention to public affairs, but the pandemic has had an effect on supply chains across the world and is one of many things that cannot be blamed on Brexit. I am delighted, however, that Scotland is reaping the rewards of Brexit and has decided to have a green freeport, which will be an enormous boost to the economy of Scotland. Perhaps he has noticed that, through the United Kingdom Internal Market Act 2020, more powers have been devolved to Scotland. Is it not eccentric that our Scottish friends would like to be ruled from Brussels, rather than being part of a United Kingdom that works effectively for everybody?
Brendan O’Hara
Yet another classic example of “If the facts don’t fit the narrative, ignore the facts.”
Such was the faith that the Minister had in himself to find these Brexit opportunities that the first thing he did was issue a “What would you do in my shoes?” appeal to readers of a national newspaper. I am sure that the suggestions for what he could do came thick and fast, but what was the best suggestion that he received? Will he be implementing it?
Mr Rees-Mogg
I have received 1,800 recommendations from the wise readers of The Sun. I believe that the British people have an enormous amount of wisdom from which politicians, particularly politicians in Scotland, could benefit.
Martin Vickers (Cleethorpes) (Con)
Businesses and business organisations in my constituency are eager to engage with the Brexit Opportunities Unit. Will my right hon. Friend be touring the UK to promote Brexit opportunities, and if so, may I invite him to visit Cleethorpes in the near future?
Mr Rees-Mogg
My hon. Friends the Members for Cleethorpes (Martin Vickers) and for Ynys Môn (Virginia Crosbie) compete with each other to be greatest champion of their constituencies. I look forward to visiting Cleethorpes in the not-too-distant future. There is a date in the diary, and I am looking forward to the finest food that Cleethorpes can provide when I go there to speak.
Mr Speaker
Don’t get too excited. You should be going to Lancashire for food.
Jerome Mayhew (Broadland) (Con)
The Minister for Brexit Opportunities and Government Efficiency (Mr Jacob Rees-Mogg)
Her Majesty’s Government are reforming the procurement rules to make it simpler and quicker for suppliers, including small and medium-sized enterprises and social enterprises, to bid for public sector contracts. The reforms will entrench transparency for the full extent of a commercial transaction, and will make it easier for buyers to take account of previous poor performance by suppliers.
Bill Esterson
The Government need to get on and reform those rules somewhat more quickly, do they not? In answer to my written question about steel targets for HS2, the Government told me that they were unable to set targets for British steel procurement because of World Trade Organisation rules, but that is not true, is it? The US sets informal targets through the Buy American Act because the WTO allows it to do so. Where, then, is the Buy British-made Steel policy in Government contracts in this country, using the informal targets that are allowed by the WTO? Labour will make more, buy more and sell more in Britain; why will the Conservatives not do so as well?
Mr Rees-Mogg
One of the opportunities of Brexit is that we will be able to encourage people to buy more from SMEs, which tend to be UK-based rather than from overseas. Opening up procurement has the effect of ensuring that more British companies get contracts, and that is a good thing to be doing, but there is always a balance to be struck between ensuring that one buys cheaply and efficiently and supporting British companies. I believe that British companies can out-compete, and be as efficient as, anyone in the world, and that that is how procurement ought to operate.
Kerry McCarthy
The Government spend £2 billion every year on food for schools, hospitals, prisons and so on. When they eventually respond to the national food strategy, will they accept its recommendations on reforming procurement rules so that food purchased with taxpayers’ money is always healthy and sustainable—and will the Minister confirm that foie gras will not be on the menu?
Mr Rees-Mogg
I do not think we need to go into my personal dietary habits. I have mainly been giving free publicity to Cadbury Creme Eggs over the years, rather than going into the details of whether or not I like foie gras—although people may be able to guess what the answer is.
As for the strategy for procurement of food, one of the things it will do is allow social benefit to be taken into account. It will not just be about value for money, although value for money is inevitably fundamental to all procurement, so it will be possible for people to make decisions on a broader range of issues.
Stephen Hammond (Wimbledon) (Con)
I welcome my right hon. Friend’s answer, and the reform that he has promised for contractors, but many large-scale projects suffer because the Government’s ability to procure and contract management have not been as good as they should be. In his role as Minister for Government Efficiency, will my right hon. Friend take that on board, and will he ensure that the Government set out new guidelines for procurement for themselves so that they do not keep changing them and hence building in inefficiency?
Mr Rees-Mogg
I am grateful to my hon. Friend for that question. The new procurement rules will make it easier for buyers to exclude suppliers that have underperformed on other public contracts. Currently, that is possible only if poor performance has led to contract termination, damages or other comparable sanctions. We will establish a new, centrally managed debarment register, which will identify any companies that should be banned from any new public contract.
Crucially, though, there has been a change within the procurement from Government to ensure that the management of contracts once they are procured is improved and is the great focus of the energy of the procurement department, because however brilliantly the procurement is issued, if it is not then managed well and effectively the benefits are lost. This is, in fact, an issue that we discussed when I had another role in this distinguished House.
Jerome Mayhew
Government tender documents are full of ancillary requirements that have laudable objectives individually but collectively form an enormous barrier to the participation of small and medium-sized enterprises because it is much harder for them to demonstrate compliance than it is for large businesses. Will my right hon. Friend consider relaxing those non-core requirements, to enable SMEs in Broadland and elsewhere to compete?
Mr Rees-Mogg
The personal liability insurance that people were required to have when contracting with the Cabinet Office inevitably excluded some smaller companies for which the cost of the extra insurance may have outweighed the benefit of winning the contract, and one of the first things I did in this post was to ask for that to be reviewed to see if it was proportionate and what we really needed. My hon. Friend is absolutely right to say that it is the detailed pettifogging conditions that keep SMEs out, and we want to bring SMEs in.
Rachel Hopkins (Luton South) (Lab)
Around 70% of all central Government contracts in 2021 went to suppliers in the south of England, with almost half going to companies in London. The Conservative Government’s procurement strategy could not be more at odds with the stated aims of their levelling-up agenda. They have made big promises but they are failing to deliver. We must see proper investment in our communities to create good-quality jobs and opportunities across the country and to boost local economies, so can the Minister outline the specific targets in the procurement Bill that will ensure that Government purchasing of goods and services is better spread across our country?
Mr Rees-Mogg
I cannot reveal the details of Bills before they are published, but I agree with the hon. Lady’s basic thrust and point. One of the advantages of our new procurement system is that we will have better data and will therefore be able to ensure that the whole of the country is represented. To revert to the point made by my hon. Friend the Member for Broadland (Jerome Mayhew), part of the way of spreading it more widely around the country is to bring in smaller businesses, which means getting rid of rules that are unnecessary and that hinder businesses from tendering for contracts.
Tim Loughton (East Worthing and Shoreham) (Con)
The Minister is very welcome to come to Worthing, where I am sure he will get an even better culinary experience than when he goes to Cleethorpes. One of the great benefits of Brexit is that we are no longer bound by EU bureaucratic procurement rules, so will he ensure that there is clear guidance to local authorities, local schools and other areas of public procurement that they should favour local businesses, particularly smaller businesses, and local producers so that our children and public service workers can enjoy quality food and drink products that are locally produced in this country, environmentally friendly and create fewer air miles?
Mr Rees-Mogg
I look forward to my trip to Worthing and I am grateful for my hon. Friend’s invitation. He is absolutely right; this comes from the de-bureaucratisation—if that in itself is not a bureaucratic word—of the system, because it makes it easier for small companies to apply. The thing to remember is that large companies have departments that fill out tender documents, but small companies do not. We need to simplify the tender documents to bring the small companies in.
Nick Smith (Blaenau Gwent) (Lab)
Over a year ago, at the Public Accounts Committee, I discovered that there were 10,000 shipping containers filled with millions of items of personal protective equipment costing billions of pounds, and I am afraid of waste. A few months later, I heard that there were 14,000 shipping containers full of unused PPE. I have put in a parliamentary question for an update, but so far it remains unanswered. Can the Minister please give us an update on how many shipping containers are still full of PPE this month?
Mr Rees-Mogg
That is a matter for the Department of Health, but I would defend the procurement of PPE because we needed PPE urgently, as we needed a vaccine urgently. We have heard constant criticism from the Opposition of something that had to be done urgently and had to break through the slowness of normal procurement timescales. Normal procurement takes three to six months, but we needed PPE tomorrow so we had to act urgently, as we did.
Dr Jamie Wallis (Bridgend) (Con)
Richard Thomson (Gordon) (SNP)
The Minister for Brexit Opportunities and Government Efficiency (Mr Jacob Rees-Mogg)
Last week, I met port industry representatives to discuss Brexit opportunities, and I intend to meet a wide range of interested parties across different sectors and industries. Ministers and officials from each Department regularly engage with the devolved Administrations on specific policy areas, and I intend to do so in areas of common interest. I am delighted to have had a letter from Angus Robertson asking to have a meeting, which I look forward to doing. We will include in these meetings reviews of retained EU law.
Deidre Brock
Annual tax loss to evasion and avoidance in the UK stands at £38 billion, which represents more than 14% of the world’s total tax loss and £570 per UK citizen per year. The EU is implementing new tax evasion rules to clamp down on it, but the UK refuses to act similarly. Does the Minister accept that this is yet another Brexit harm? Or does he see the evasion of tax by wealthy individuals and companies as a Brexit opportunity?
Mr Rees-Mogg
Actually, the Government have a very good record in clamping down on the tax gap and ensuring that people pay the tax that is owed. Fraud, within the whole system of government, is something that must be borne down on. Every element of fraud is taking money from other taxpayers. Therefore, the Government have a strong drive to bear down on it, and have introduced over the past 12 years a number of measures to reduce the opportunities for any tax fraud. We do not need the European Union to tell us how to do it; I could go through some countries of that organisation that have a pretty poor tax collecting record.
Richard Thomson
The Government have touted their so-called Brexit freedoms Bill as a means of cutting up to £1 billion-worth of red tape, yet Her Majesty’s Revenue and Customs estimates that new customs rules resulting from Brexit could lead to increased costs for businesses of up to £15 billion each year. Is it not the case that the only cuts to red tape that have been made since Brexit have been the repeated cutting of red tape lengthways to create many more miles of the stuff than ever existed when we were part of the EU?
Mr Rees-Mogg
The hon. Gentleman conjures up images of origami; I am waiting to see what creatures he will create with the papers he cuts up. It is fundamentally important not only that we cut red tape that was imposed by the European Union but that we do not, as a country, impose red tape on ourselves. We now have the freedom not to impose red tape on ourselves, which is something that I, in my new role, am keen to ensure.
Stephen Crabb (Preseli Pembrokeshire) (Con)
Two weeks ago, the courts again threw out the Welsh Labour Government’s legal challenge to the United Kingdom Internal Market Act 2020. Does my right hon. Friend agree that instead of spending the past five years expending an enormous amount of time, energy and taxpayers’ money on fighting a democratic referendum result, the devolved Administrations would have served their populations far better by working collaboratively with the UK Government on the great national mission of levelling up our one United Kingdom?
Mr Rees-Mogg
I entirely agree with my right hon. Friend. It is noticeable that the hard-left Administration in Wales, backed up by separatists, is not acting in the interests of the people of Wales. It would be much better to accept the democratic result of the Brexit referendum. The people of the United Kingdom voted to leave; we have now left and the opportunities will flow. To waste taxpayers’ money on taking fruitless legal action is, to my mind, the sort of thing that only the hard-left socialist would do.
Munira Wilson (Twickenham) (LD)