Oral Answers to Questions Debate

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Department: Cabinet Office

Oral Answers to Questions

Lord Maude of Horsham Excerpts
Wednesday 14th December 2011

(12 years, 4 months ago)

Commons Chamber
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Mark Spencer Portrait Mr Mark Spencer (Sherwood) (Con)
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7. What assessment he has made of the potential effects of planned changes to Government procurement on UK businesses bidding for contracts.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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On 21 November, I announced a package of measures to transform how the Government buy. We want to save money for the taxpayer and for suppliers and to make it easier for small and medium-sized enterprises and voluntary organisations to bid successfully. That is why we have announced a pipeline of £50 billion-worth of future business opportunities. We will make it 40% quicker to do business with Government and we will, in future, engage proactively with current and future suppliers to discuss upcoming procurement opportunities.

Alec Shelbrooke Portrait Alec Shelbrooke
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Will my right hon. Friend describe to the SMEs in my constituency of Elmet and Rothwell where they should go if they have any problems or issues with Government procurement?

Lord Maude of Horsham Portrait Mr Maude
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If there are problems not only in how central Government procure but across the wider public sector, I hope that my hon. Friend’s constituents will make contact with my Department through the helpline that we have set up specifically for the purpose. If they highlight how procurements are being done that entrench the old, inefficient and anti-enterprise way of doing things, we can then intervene proactively, as we have done on a number of occasions, to make improvements.

Mark Pawsey Portrait Mark Pawsey
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It is the small businesses that often have the greatest difficulty in accessing Government contracts, and that is because of a regulation from the European Union. Will the Minister tell us what steps he is taking to reform EU regulations to make it easier to secure contracts with Government both at a national and local level?

Lord Maude of Horsham Portrait Mr Maude
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The first thing that we are doing is trying to ensure that the way in which we implement the European directives is sensible and not overly bureaucratic and legalistic, which it usually is at the moment. The European Commission is introducing proposals to streamline and simplify the procurement directives, which we welcome. I was talking to Commissioner Barnier in Brussels two or three weeks ago, and he was very open to that happening.

Mark Spencer Portrait Mr Spencer
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Fresh Opportunities is a company in my constituency that supplies water drinkers to jobcentres. Sadly, though, it lost the contract. That was not because it was inefficient or too expensive but because it could not deliver a service on a large enough scale. What can the Minister do to enable SMEs, which cannot operate on a national scale, to be able to deal with Government bodies?

Lord Maude of Horsham Portrait Mr Maude
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We have two objectives here. We want to buy as efficiently as we can, which, in many cases, means using the scale of Government to aggregate volume and drive down prices. In many areas of procurement of commodities, goods and services, we are able to get the price advantages of aggregation but, none the less, involve SMEs much more in the process. We have a commitment and an aspiration to increase the value of SME business to 25% of the total.

Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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The Minister will be aware that public procurement guidelines in Northern Ireland are set by EU directives and UK regulations. Will the Minister, therefore, give a commitment to work alongside the Northern Ireland Executive and not to turn his back on Europe in negotiations to tackle the issues of over-complexity, cost and red tape, as those are issues that are affecting local business?

Lord Maude of Horsham Portrait Mr Maude
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As I said, we are actively engaged with the European Commission in supporting the good work that it is undertaking to streamline procurement processes, but we need to ensure—and I hope that the hon. Lady will do this—that the Administration in Northern Ireland do not overimplement the directives because we are finding that central Government and the wider public sector in Great Britain tend to do that.

Mark Williams Portrait Mr Mark Williams (Ceredigion) (LD)
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Notwithstanding what the Minister said about the economies of scale, the Federation of Small Businesses has reported an increased tendency for public sector contracts to be aggregated into much larger ones, thereby penalising smaller businesses. What has the Minister got to say to those small businesses?

Lord Maude of Horsham Portrait Mr Maude
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There is a whole range of procurement opportunities that are particularly suitable for smaller businesses. Even when we aggregate, that does not exclude small businesses. For example, we have just let the contracts for travel for the whole of Government and one of the successful two bidders is a very small business, which, as a result of winning that contract, will become a much bigger one.

Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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Can my right hon. Friend include in that assessment the ability of charities and small organisations, mutuals and so on to bid for public sector contracts as providers of public services? May I commend the report that the Select Committee on Public Administration has published today on the big society, which recommends that the Government extend the eligibility for the VAT refund scheme, which currently applies to public sector bodies, to charities that deliver public services under contract with a public sector organisation?

Lord Maude of Horsham Portrait Mr Maude
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I shall ensure that my right hon. Friend the Chancellor takes note of my hon. Friend’s suggestion. We want to make it easier for small voluntary organisations and mutuals to bid successfully. One thing that we aim to do is to get contracts chunked up into smaller lots. We have much bigger contracts, generally, than France or Germany would have in equivalent circumstances, which tends to militate and be biased against the interests of smaller businesses and voluntary and charitable organisations.

Jonathan Ashworth Portrait Jonathan Ashworth (Leicester South) (Lab)
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3. What assessment his Department has made of the role of the big society initiative in tackling social exclusion.

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Jim McGovern Portrait Jim McGovern (Dundee West) (Lab)
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4. Whether his Department has considered altering its guidance on the disposal of official Government documents.

Jim McGovern Portrait Jim McGovern
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According to Cabinet Office guidance, what would be the recourse if a civil servant in the Minister’s Department breached the Data Protection Act?

Lord Maude of Horsham Portrait Mr Maude
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I can provide a detailed answer to the hon. Gentleman if he requires. If he is concerned about classified Government documents going amiss, I suggest he raises the matter with his right hon. Friend the shadow Health Secretary, who in 2009 had to apologise for leaving a briefcase full of classified Government documents on a train.

Richard Fuller Portrait Richard Fuller (Bedford) (Con)
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5. What recent progress he has made in establishing Big Society Capital.

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Ian Murray Portrait Ian Murray (Edinburgh South) (Lab)
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8. What steps he is taking to encourage employee mutuals to develop and run central Government services.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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As we set out in the “Open Public Services” White Paper, we are committed to an ambitious programme of mutualisation, allowing staff to break free of bureaucracy and to spin out from the public sector. To support that, we have put in place the mutuals support programme, the mentoring of mutuals by groups such as John Lewis, the mutuals task force chaired by Professor Le Grand and the mutuals information service, and we are increasing the “right to provide” scheme.

Ian Murray Portrait Ian Murray
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The Minister for the Cabinet Office expects there to be an extra 1 million workers in organisations taking over the running of public services by 2015. Will he update the House on how many he expects to be doing so by the end of this financial year?

Lord Maude of Horsham Portrait Mr Maude
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I have certainly not set a target of 1 million, but it is perfectly feasible that 1 million public sector workers will choose to take themselves out of the public sector in order to deliver in employee-led organisations the services that they currently provide. The number is growing, and, although we cannot make it happen, we are going to make it a great deal easier and to support all those groups. The benefits are huge in terms of productivity. Staff absence falls, staff turnover falls and customer satisfaction rises very dramatically, so I hope that we have the hon. Gentleman’s enthusiastic support for this programme of mutualisation.

Craig Whittaker Portrait Craig Whittaker (Calder Valley) (Con)
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9. How small and medium-sized enterprises in Calder Valley constituency can bid for central Government information and communications technology and facilities management contracts.

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Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
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10. What progress he has made in reaching agreement with trade unions on the Government’s proposed reforms to public sector pensions.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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We have engaged in intensive and frequent discussions with the trade unions. At their request, talks are continuing at scheme level in the four public sector pension schemes that are currently being discussed, and we continue to make progress, I believe, in all four. We are determined that public sector pensions will remain among the very best available, but in order to make them sustainable and affordable for the long term, reform is urgently needed.

Philip Hollobone Portrait Mr Hollobone
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Under the Government’s offer, a teacher earning £32,000 a year could anticipate a pension of £20,000 a year, whereas a private sector worker earning the same salary would have to devote some 38% of his or her wages in order to get a pension of the same size. Given the terms of the Government’s offer, should the trade unions not now call off any threat of further industrial action?

Lord Maude of Horsham Portrait Mr Maude
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I simply pray in aid what Lord Hutton, the former Labour Pensions Secretary, said yesterday, when he referred to public sector trade unions “holding a gun” to the taxpayer’s head. He said that the offer was generous and that it was hard

“to envisage a better offer being made.”

I hope that we can now move quickly to resolve the final, outstanding issues, so that we can move on without further disruption to people’s lives.

Ben Bradshaw Portrait Mr Ben Bradshaw (Exeter) (Lab)
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Given that the Minister’s Department is currently the worst in Whitehall for meeting the Government’s business plan targets—targets for which he is responsible—having missed 38 at the last count, would his time not be better spent sorting out his own Department, rather than picking fights with public sector unions?

Lord Maude of Horsham Portrait Mr Maude
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The short answer is that we want to get these public sector pension issues resolved quickly. I would be quite interested to know whether the right hon. Gentleman shares our belief—and that of Lord Hutton, his former colleague—that we are talking about a generous offer that the trade unions should accept, and that they should stop “holding a gun” to the taxpayer’s head. Does he agree with that?

John McDonnell Portrait John McDonnell (Hayes and Harlington) (Lab)
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The Minister earlier announced that if he had not secured agreement by Christmas, he would impose a pensions settlement or scheme on the unions. Is that still his intention, and if it is, will he make a statement to the House next week?

Lord Maude of Horsham Portrait Mr Maude
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We very much hope that it will not be necessary for the Government to move to the stage of imposition. Our intention is that we should reach agreement. It is necessary that we reach agreement by the end of the year, because there is a lot of work to do to put the new schemes in place as early as possible, so that people know what their future holds and we can implement the new schemes; so yes, we will be making further announcements to the House before it rises.

Julie Hilling Portrait Julie Hilling (Bolton West) (Lab)
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11. What steps he is taking to support the voluntary sector.

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Tom Blenkinsop Portrait Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
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T1. If he will make a statement on his departmental responsibilities.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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My responsibilities are for the public sector Efficiency and Reform Group, civil service issues, industrial relations strategy across the public sector, Government transparency, civil contingencies, civil society and cyber-security.

Tom Blenkinsop Portrait Tom Blenkinsop
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Lists for 2010 failed to mention that the Prime Minister met Rupert Murdoch in June 2010. This was amended to ensure transparency only recently. Why?

Lord Maude of Horsham Portrait Mr Maude
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No doubt we can provide an answer to that question, but I do not have one at my fingertips.

Baroness McIntosh of Pickering Portrait Miss Anne McIntosh (Thirsk and Malton) (Con)
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T2. Mindful of the fact that we have not had flooding for a number of months and mindful of the forecasted storm weather, can the Minister for the Cabinet Office assure us that flood rehearsals are taking place between all the relevant emergency services on a regular basis?

Lord Maude of Horsham Portrait Mr Maude
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I can certainly confirm that. Meetings are taking place between the relevant Departments—one took place earlier this morning—to ensure that capabilities are in place in advance of any possible flooding, with urgent consideration given to ensuring that the public receive the right advice. I am glad to say that the forecast is looking a little better than it was.

None Portrait Several hon. Members
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rose[Interruption.]

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Simon Hart Portrait Simon Hart (Carmarthen West and South Pembrokeshire) (Con)
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T5. Can the Minister confirm how many civil servants went on strike in the recent action?

Lord Maude of Horsham Portrait Mr Maude
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I can indeed. [Interruption.] On— [Interruption.]

John Bercow Portrait Mr Speaker
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Order. I know that the House wants to hear the right hon. Gentleman’s answer.

Lord Maude of Horsham Portrait Mr Maude
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I sense that the House is waiting on the edge of its seat for my answer. On 30 November, 146,256 civil servants went on strike, which represents about 30% of the civil service work force. I would like to express my appreciation to the 70% of civil servants who came to work that day as normal.

Karl Turner Portrait Karl Turner (Kingston upon Hull East) (Lab)
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T4. The Minister is refusing to negotiate with the unions over pension contribution increases, the retirement age, cost ceiling, indexation and other issues. Is that not typical of this Government, proving that they enter into negotiations with no intention whatever of coming to an amicable agreement? Are not the Government spoiling for a scrap with the trade unions?

Lord Maude of Horsham Portrait Mr Maude
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Far from spoiling for a scrap with the trade unions, we are engaged in very intensive discussions with them. Even in the week during which the strike took place—a completely unnecessary strike, which the Labour party refused to condemn, massively inconveniencing many people and damaging the economy—a number of meetings took place with the trade unions to try to secure agreement on the much needed reforms. Let me remind the hon. Gentleman that Lord Hutton, the former Labour Pensions Secretary, has said that this is a generous offer and that the unions should stop “holding a gun” to the taxpayer’s head.

Harriett Baldwin Portrait Harriett Baldwin (West Worcestershire) (Con)
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T6. Malvern has a cluster of firms—small, medium and large—with expertise in cyber-security. I invite the Minister down to Malvern to meet them.

Lord Maude of Horsham Portrait Mr Maude
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I can imagine nothing that would give me greater pleasure.

Diana Johnson Portrait Diana Johnson (Kingston upon Hull North) (Lab)
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T8. Does the Minister have any regrets about the way in which he has conducted negotiations with the public sector trade unions by using megaphone diplomacy through the media and not providing information in a timely way?

Lord Maude of Horsham Portrait Mr Maude
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No, I have no regrets at all. We have engaged in very intensive discussions over a long period with the unions and the leadership of the TUC over the individual schemes. If the hon. Lady thinks we are not negotiating, she should talk to the TUC about the intensiveness of the negotiations. Perhaps she would like to remind her friends in the unions of what Lord Hutton, the former Labour Pensions Secretary, said only yesterday about the Government’s offer. [Interruption.]

None Portrait Several hon. Members
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rose

Simon Hughes Portrait Simon Hughes (Bermondsey and Old Southwark) (LD)
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T7. What contribution are Departments making to greater energy efficiency and reducing carbon emissions following the successful Durban summit?

Lord Maude of Horsham Portrait Mr Maude
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In the first year following the forming of the coalition Government, we cut carbon emissions by more than the 10% target that we had set ourselves. We have also committed ourselves to ensuring that carbon emissions from Government buildings—Government property—fall by no less than 25% during the current Parliament, and I am confident that we will fulfil that commitment.

Chris Ruane Portrait Chris Ruane (Vale of Clwyd) (Lab)
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The Electoral Commission announced today that there are not 3 million but 6 million missing, unregistered voters. Does the Minister agree that the equalisation of seats should be postponed, or suspended, until a full investigation has been conducted to establish where those 6 million people are?

Lord Maude of Horsham Portrait Mr Maude
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I very much regret the fact that in the 13 years for which the hon. Gentleman’s party was in office, it did absolutely nothing to address that problem.

Lord Evans of Rainow Portrait Graham Evans (Weaver Vale) (Con)
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T9. The national citizens service is an excellent initiative to help young people to develop the skills and attitudes that they need in order to become responsible citizens. Can the Minister tell me what local branches of the service will be available to them in my constituency?