Oral Answers to Questions

Jerome Mayhew Excerpts

Thursday 24th February 2022 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

14. What steps he is taking to ensure that underperforming Government contractors may not apply for further Government contracts.

[Jerome Mayhew (Broadland) (Con)]

18. What steps the Government are taking to increase opportunities for small businesses to bid for Government contracts.

[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.

--- Later in debate ---

[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.