Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 13th March 2019 Commons Chamber

[Bambos Charalambous (Enfield, Southgate) (Lab)]

2. What recent discussions he has had with trades unions on civil service pay.

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

The Chancellor of the Duchy of Lancaster and I regularly engage with unions on a range of civil service workforce issues, including pay. I most recently met union representatives across the wider public sector last month, and I will meet civil service trade unions on pay for 2019 very shortly.

[Bambos Charalambous]

Since 2010, wages for workers in the civil service have fallen 10% to 13% behind workers in the NHS, local government and the education sector. Despite that, the Cabinet Office has confirmed that any pay rise above 1% will have to come from further cuts in jobs, and in terms and conditions. Is it not time that the Government backed up their claim to be ending austerity by ending it first for their own employees?

[Oliver Dowden]

As the hon. Gentleman acknowledges, we have removed the 1% pay cap, and it is up to each Department to find efficiency savings and better ways of working to pay for greater pay rises. That is exactly what we have seen. For example, the Foreign Office agreed a deal of 4.6% on average over the course of two years, giving a pay rise but funded properly by efficiency savings.

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

Will my hon. Friend say whether in the discussions he has been having he has reflected on how much the national living wage will increase from next month, and how many workers that will benefit?

[Oliver Dowden]

As ever, my right hon. Friend is absolutely correct. In fact, the effect of the national living wage this year is to hand workers a £700 pay rise.

[Chris Stephens (Glasgow South West) (SNP)]

Can the Minister confirm that permanent secretaries agreed a 1% pay offer across the board in Departments last year? Does that not make a mockery of the fact that the Government have 200 separate pay negotiations across the civil service?

[Oliver Dowden]

As the hon. Gentleman is aware, in respect of lower grades—those below the senior civil service—there is a delegated pay process. The overall framework is set by the Cabinet Office and the Treasury, and it is for individual Departments to decide. We will go through the proper process, and no final decisions have been taken.

[James Duddridge (Rochford and Southend East) (Con)]

3. What plans the Government have to encourage more candidates with disabilities to stand for election.

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[Carol Monaghan (Glasgow North West) (SNP)]

6. If he will make it his policy to introduce the real living wage in all Government Departments and to seek accreditation from the Living Wage Foundation.

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

We are addressing this issue through the application of the statutory national minimum wage and the national living wage, based on the advice of the Low Pay Commission. From April, the national living wage will rise again, from £7.83 to £8.21 per hour, handing a full-time worker a further £690 annual pay rise.

[Carol Monaghan]

The real living wage is £9 an hour, and, in terms of paying it, Scotland is already the best performing part of the UK. Over the next three years, the Scottish Government will be lifting more people— 25,000 more people—out of poverty and on to the real living wage. When will the UK Government follow Scotland’s lead in paying the real living wage, not the bogus national living wage?

[Oliver Dowden]

I am sorry to hear the hon. Lady referring to the national living wage as bogus. It is a very proud achievement of this Government and it is actually rising faster this year than the real living wage. Over the past three years, since it was introduced, the national living wage has handed the lowest paid workers a pay rise of almost £3,000.

[Alex Burghart (Brentwood and Ongar) (Con)]

7. What steps his Department is taking to help improve the cyber-security of public and private sector organisations.

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

Our world-leading national cyber-security strategy, supported by £1.9 billion of transformational investment, sets out the steps that we are taking to defend our people, deter our adversaries, and develop the skills and capabilities that we need. Our vision is that, by 2021, the UK is secure and resilient to cyber threats and prosperous and confident in the digital world.

[Alex Burghart]

I was concerned to read that three quarters of FTSE 350 companies are not aware of the risks associated with businesses in their supply chain, particularly with businesses with which they have no contact. What steps are the Government taking to ensure that their own suppliers understand these vulnerabilities?

[Oliver Dowden]

As ever, my hon. Friend is absolutely right to raise this very important issue. Companies must do more to understand their supply-chain risks. Our cyber essentials scheme extends our influence to organisations that provide products and services to Government; it specifies standards that will improve their cyber-security. We use contractual arrangements to ensure that they help those in their supply chains, often small companies, to be more secure.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Technology can help deliver public services which are better, smarter, more tailored and put people in control, but that requires investment in people, processes and equipment. The 2017 WannaCry attack on the NHS was a consequence of a lack of investment in all three. What is the Minister doing specifically to give local authorities and other public service deliverers the resources and the skills that they need to ensure secure digital public services?

[Oliver Dowden]

The hon. Lady is absolutely right to raise the challenge of cyber-security, but we have responded to that challenge. That is why we have created the National Cyber Security Centre, funded by £1.9 billion of additional money. On the WannaCry incident, we have learned the lessons since that attack and we are, for example, rolling out Windows 10 across the NHS.

[Jo Platt (Leigh) (Lab/Co-op)]

We know that 43% of businesses experience cyber-security breaches each year and, as we have just heard from my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah), we know that half of all local authorities in England still rely on unsupported server software. We know from the Minister himself that the Government have no idea how many cyber-attacks hit Government. Does the Minister accept that we need a new approach? We need to look at how we foster cultural cyber-change and we need to look at how we put the public good rather than private interest back at the heart of Government cyber strategy.

[Oliver Dowden]

The hon. Lady says that we have no idea of the level of attacks. I am happy to set out the number for her. We have already managed more than 1,100 major incidents through the National Cyber Security Centre. The national cyber security strategy is delivering, for example, the removal of more than 4.5 million malicious emails every month, and the taking down of 140,000 fraudulent phishing sites. This strategy is bringing together the commercial side and the Government side and it is delivering.

[Mr Speaker]

We are out of time, but we must hear the question of the right hon. Member for Loughborough (Nicky Morgan).

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[Rosie Cooper (West Lancashire) (Lab)]

T2. On Sunday, the BBC reported that Interserve is likely to go into administration on Friday. What steps is the Minister taking to protect jobs and pensions, should Interserve collapse?

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

As the hon. Lady would expect, we keep under review the situation in relation to all our strategic suppliers. I assure her that we take appropriate contingency measures in respect of every strategic supplier.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

T5. Can the Minister tell us what discussions he has had with Cabinet colleagues on delivering more public services online?

[Oliver Dowden]

To date, we have already delivered almost 800 services online on gov.uk. In addition, I regularly engage with ministerial colleagues, principally through the digital implementation task force, which is chaired by my right hon. Friend, the Secretary of State for Digital, Culture, Media and Sport.

[Laura Smith (Crewe and Nantwich) (Lab)]

T3. The Government claim that they have lifted the pay cap and declared austerity over, but it seems that this does not apply to their own employees. The lack of consultation on the civil service pay guide is just shameful. When will the Minister make it his policy to return to national pay bargaining?

[Oliver Dowden]

This Government do not support national pay bargaining. It has been a step forward that we tailor pay to the needs of each individual Department. But I engage with all trade unions as we set the overall delegated framework that applies to pay grades below the senior civil service.

[Damien Moore (Southport) (Con)]

T7. I welcome the announcement from the Cabinet Office on reforming the way that Government contracts are awarded so that they consider social impacts. Has my hon. Friend made an assessment of the effect of these changes on social enterprises?

[Oliver Dowden]

My hon. Friend rightly raises the issue of social enterprises. That is why, earlier this week, I made an announcement that we would be consulting on how to allow social enterprises to bid for a range of Government contracts and set out a clear framework for them to do so. I am confident that we will be able to unlock the opportunities of the over 100,000 social enterprises we have in this country.

Draft Public Procurement (Electronic Invoices Etc.) Regulations 2019

Oliver Dowden Excerpts

Thursday 7th March 2019 General Committees

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

I beg to move,

That the Committee has considered the draft Public Procurement (Electronic Invoices etc.) Regulations 2019.

It is a pleasure to serve under your chairmanship, Mr Gapes, in what I hope will be a fairly straightforward statutory instrument for the Committee to consider.

The Government are committed to securing a deal to ensure an orderly withdrawal from the European Union. In that event, we will be required to continue to abide by our commitments under the proposed withdrawal agreement, including the obligation to comply with EU law during the implementation period and to transpose European directives into UK law.

One such directive concerns electronic invoicing in public procurement. The draft regulations are a short and simple measure that aims to promote the uptake of electronic invoicing in public procurement by requiring public bodies to accept electronic invoices from their contracted suppliers. Principally, the draft regulations will transpose the e-invoicing directive, but they also make a number of small and minor technical corrections to public procurement rules.

[Michael Fabricant (Lichfield) (Con)]

This SI seems to make good sense—it is very modern, and this is how we should be doing business anyway. However, in the event of no deal, will we have to pass a different statutory instrument or will this one still apply?

[Oliver Dowden]

I was just coming to that. The draft regulations are due to come into effect after the withdrawal date so, in the event of no deal, we would clearly not be obliged to implement it because we would not be subject to EU law, but we might decide to continue to do so anyway. There are pretty good grounds for that, because it is in essence a simplification measure for businesses. That brings me to a segue.

Significant benefits can be realised by promoting the uptake of standardised electronic invoicing in public procurement, given the reduction in costs and administrative burdens for procuring entities and their suppliers, and given the environmental impact of a move away from paper-based invoicing. That is why in 2014 the EU adopted directive 2014/55 on electronic invoicing.

The draft regulations transpose that directive into domestic law. They do so by amending existing procurement legislation applicable to the award of public contracts and of contracts in the utilities sector. The Scottish Government have brought forward their own legislation to give effect to the directive in similar terms to this instrument. The directive contains one simple obligation for member states: to take necessary measures to require public sector buyers and utilities to receive and process electronic invoices that comply with a common standard.

It is important that I stress from the outset that private sector suppliers, other than those privatised utilities remaining subject to public procurement rules, will not be obliged to use the EU invoicing standard unless they wish to. We are not imposing additional costs on suppliers.

The measures that we are introducing will oblige contracting authorities and other procuring entities to include within their contracts an express term requiring them to accept and process electronic invoices that comply with the standard, where of course there is no dispute as to payment. In the absence of such express electronic invoicing provisions in the contract, a term to that effect would be implied—if they do not put it in, this statutory instrument will imply that term. Suppliers will be able to enforce their ability to invoice purchasers for goods and services electronically via the terms of the contract.

The European Committee for Standardisation was commissioned to draft the standard, and the British Standards Institution was involved in its development. The standard was published in October 2017, following which the UK had 18 months to implement the directive’s requirements. The deadline for that implementation is 18 April 2019. As I discussed with my hon. Friend the Member for Lichfield, it will not escape the attention of the Committee that that falls after the date on which the UK is anticipated to leave the European Union. However, the Government’s aspiration or intention remains that the UK will secure a deal with the European Union. Under the withdrawal agreement, we would then enter the implementation period, during which we continue to be bound by the directive, so the draft regulations will come into force on 18 April 2019.

There is a slight wrinkle in respect of central subcontracting authorities such as local authorities and utilities. The directive confers on member states the discretion to postpone the application of implementing provisions until 18 April 2020, in respect of those entities. We have taken advantage of that derogation. I think it is right that we allow procuring authorities other than central Government authorities time to adapt to the change. However, there is nothing to prevent those authorities from accepting electronic invoices prior to that date.

In the event that no agreement is reached, we will, as we have discussed, consider the options available. We would, of course, be free to implement this provision. I see no reason why we would not choose to do so, but we would make the decision at that point.

As set out in further detail in the explanatory memorandum, we have also taken the opportunity in this instrument to make minor amendments to how the Public Contracts Regulations 2015 and the Concession Contracts Regulations 2016 refer to offences under the Modern Slavery Act 2015. Those are essentially tidying-up measures.

I hope that members of the Committee will agree that with this instrument we have the opportunity to provide real benefits to both the supplier community and the public sector, and I look forward to seeing its progress through both Houses. I commend the regulations to the Committee.

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[Oliver Dowden]

I welcome the support of the Opposition Front-Bench spokesperson, the hon. Member for Leigh, for these measures. I will try to address the points that she has raised; if I fail to address any of them, I will be happy to come back to her in writing.

First of all, in relation to timing it is true that the directive came into effect in 2014. However, it relied on the publication of the European standard, which was only published in 2017. Member states were given 18 months from then to bring forward their measures.

In respect of the delay for smaller entities, those are quite welcome to adopt the standards at an earlier stage; the regulations are simply permissive to allow them a longer period of time. I felt it was appropriate to invoke this derogation to allow those smaller entities a long period, because it may take them more time to adjust to the necessary changes to their procurement systems.

In respect of the other points that the hon. Lady raised, it is important to clarify that no private sector business, whether a large business or an SME, will be required to take advantage of these regulations. The regulations permit businesses, if they wish, to invoice electronically, but they can continue to invoice in a paper-based form if they wish. What the regulations do is require the Government supplier to accept an e-invoice if they so choose; if there is not a term within the contract that allows for e-invoicing, the regulations will imply that. They are very much about enabling rather than requiring.

The hon. Lady raised the point about Cabinet Office prompt payment. She is absolutely right that there was a decline in Cabinet Office prompt payment, which was due to the adoption of a new invoicing system. That is common with other Departments. I think I updated her, or another Opposition Member, in the House a couple of weeks ago on the progress that we are making in that regard. In fact, we are back up to standard now in the most recent months when it comes to the speed of prompt payment, but I would be very happy to write to her to set out those figures in detail.

Regarding impact assessment, Cabinet Office economists have calculated that the direct costs and benefits to business flowing from this directive do not exceed £5 million. On that basis, we did not feel it necessary to undertake a full regulatory impact assessment to be cleared by the Regulatory Policy Committee.

Cyber-security is very important, which is why the Government have established for the first time a national cyber-security strategy, accompanied by £1.9 billion worth of funding. As part of that strategy, they have set up a national cyber-security centre that sets standards for cyber-security. In addition, the revised Government playbook—the rules for procurement that I published the week before last—contains explicit provisions in relation to cyber-security requirements for all those contracting with Government.

I hope that my response has addressed the points that the hon. Member for Leigh raised. As I said, this is a fairly straightforward measure: it is simply about enabling businesses to invoice electronically, and requiring suppliers to accept that. I am grateful for the Opposition’s support, and I commend the regulations to the Committee.

Question put and agreed to.

Draft Public Procurement (Amendment etc.) (EU Exit) Regulations 2019

Oliver Dowden Excerpts

Wednesday 13th February 2019 General Committees

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

I beg to move,

That the Committee has considered the draft Public Procurement (Amendment etc.) (EU Exit) Regulations 2019.

May I say what a pleasure it is to serve under your chairmanship, Sir Henry? The Government are committed to securing an agreement on the UK’s exit from the EU, but clearly we must be prepared for all outcomes. The legal framework for the regulation of public procurement by the Government and public sector bodies is essential to the day-to-day running of the public sector and to the economy. If no deal is reached with the EU, certain aspects of that legal framework will be deficient, leaving the public sector and businesses without legal clarity. The statutory instrument therefore seeks to address those deficiencies in a no-deal scenario.

The amendments in the draft regulations provide a balance between the need to maintain continuity based on the established framework and principles, and the need to correct those deficiencies to the extent permitted by the European Union (Withdrawal) Act 2018. Principally, the statutory instrument amends three sets of regulations that implement EU directives on awarding contracts and concessions in the public and utilities sectors outside the field of defence and security.

One of the key amendments is to replace the requirement to publish contract notices in the Official Journal of the European Union with a requirement to submit notices to the UK e-notification service. That is intended simply to comply with the publication requirements of the World Trade Organisation agreement on Government procurement. The UK e-notification service is being developed and is on track to be in place by exit day.

[Sir Greg Knight (East Yorkshire) (Con)]

I realise that the explanatory memorandum does not officially form part of the instrument we are debating, but it is there to help us. Paragraph 6.6 of the memorandum states:

“There are some deficiencies in the Regulations that have not been fixed in this instrument.”

Can the Minister tell us what those deficiencies are, when they are likely to be fixed and debated, and why we are doing this in a piecemeal manner?

[Oliver Dowden]

I am happy to write to my right hon. Friend with fuller details, but the instrument essentially seeks to align the procurement regime we have under the EU and bring it into UK law. There will be further opportunities to fix deficiencies as we continue to reform regulation in a post-EU environment.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Minister says there will be future opportunities. Surely, as the Minister responsible, he has already identified those opportunities and planned a timeline for making the fixes he thinks are required. Will he clarify that?

[Oliver Dowden]

The best approach to identifying opportunities for reforming procurement laws is to look at those laws in totality once we have left the European Union so that, to the point made by my right hon. Friend the Member for East Yorkshire, we can consider their full scope rather than doing things in a piecemeal fashion. In that way, we will be able to reform EU procurement law in its totality and ensure that we address the range of concerns about how that law works. Since we will no longer be bound by it, we will have the opportunity to do that in a full-hearted way.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

Further to the point made by the hon. Member for Kilmarnock and Loudoun, may I make a suggestion? Does my hon. Friend agree that broadband is critical for the future of our country, but that too often public procurement rules have been used to stop the roll-out of broadband by setting artificially high barriers to the provision of state aid by the Government? The state aid rules have been used against local communities. Will he look at that as he takes this policy area forward?

[Oliver Dowden]

That is one example. There are many such examples. The Government are still working on the assumption that we will reach agreement on the withdrawal agreement, that it will be passed by Parliament and that we will have a transition period, which will allow us two years to consider this further. I would like to have a Green Paper first so that we can discuss all the ideas before formally bringing forward legislation, to make sure we capture all the related issues.

[Alan Brown]

Can the Minister explain what checks and balances there are? The EU procurement rules were about open competitive tendering. We know that with Ferrygate it was a direct award. What checks and balances are there to stop the UK Government, rather than the Cabinet Office, from having too much power in the procurement process?

[Oliver Dowden]

The draft regulations take all the existing EU procurement rules and replace them in the law of the United Kingdom. All the remedies that exist under EU law will exist under these regulations. Such cases can be pursued in court, as was the case previously. There is no change to the law other than to bring these things into UK law, and no change to the remedies—they still exist in the courts as they did previously.

This statutory instrument confers a number of regulation-making powers. They mirror powers that the EU Commission and the European Council have under EU directives and regulations or the treaty on the functioning of the European Union. The current procurement regulations are subject to the derogation in article 346 of the treaty on the functioning of the European Union. That provision enables the UK to take necessary measures to protect essential security interests connected with the production of or trade in armed munitions and war material. That includes overriding the procurement rules or aspects of them.

To ensure that the UK continues to benefit from this important derogation once we have left the EU, we have incorporated the text of article 346 into the procurement regulations, with appropriate modifications. Currently, the arms and munitions that fall within the scope of the derogation are determined by a list drawn up by the Council of Ministers of the European Economic Community as it then was, back in 1958. The list includes portable and automatic firearms, ammunition, guided missiles, military vehicles and so on. The modifications we have made include a power for the Secretary of State for Defence to update that 1958 list, for example to take account of developments in technology. Given the nature of this regulation-making power and its potential to affect the scope of the procurement regulations, its exercise has been made subject to the affirmative procedure.

The other regulation-making powers will be exercised by the Minister for the Cabinet Office. They include the function to revalue the main financial thresholds following a biennial review on the same basis as the European Commission, and to convert thresholds of the agreement on Government procurement directly into equivalent sterling values. Also transferred is the power that the directives confer on the Commission to update the exemptions to the use of electronic means of communication, in the light of technological developments, and to update the technical requirements relating to tools and devices for the electronic receipt of tenders, as well as to take account of technological developments.

The updates would be made through regulations that are subject to the prior consent of Welsh Ministers or Northern Ireland Departments in respect of devolved Welsh or Northern Ireland authorities. The Commission’s power to amend the list of international agreements in the field of environmental, social and labour law, set out in annexes to the directives, has also been conferred on the Minister for the Cabinet Office by means of the Minister’s power to treat the list as though certain international agreements were removed and others not covered were listed. Again, any ensuing regulations are subject to the prior consent of Welsh Ministers or Northern Ireland Departments in respect of Welsh or Northern Ireland devolved authorities.

Finally, the Commission currently has the power to amend the annexes to EU regulation 2195/2002 of the European Parliament and of the Council on the common procurement vocabulary—CPV. That regulation will become retained direct EU legislation on exit day. The Minister for the Cabinet Office is given the same power to amend the annexes to the retained version of the regulation.

[Martin Whitfield (East Lothian) (Lab)]

I want to raise an issue about the drafting of the regulations that sticks in my craw slightly. Regulation 17(2) refers to the Utilities Contracts (Scotland) Regulations 2016. Clearly, the idea of adopting the Scottish Parliament’s statutory instrument to replace the European Union regulations is how the Government want to proceed, which is fine. However, unfortunately, in drafting it, the Government have omitted to make provision for it to be amended. Given that the Minister for the Cabinet Office has powers to increase the amounts when regulations kick in, a similar power rests with the Scottish Parliament and should be reflected in the regulations, so that the correct, updated regulations are referred to for utility companies. This provision is made earlier on in the regulations, so I think it is just a mere omission and if we have to revisit it, it can be done at the appropriate stage.

[Oliver Dowden]

I thank the hon. Gentleman for his intervention. I think he is quite right in that interpretation but I will confirm that.

The annexes set out a sophisticated vocabulary that enables numerical codes to be used to describe different kinds of works, supplies and services in, for example, notices that advertise procurement opportunities and so enable suppliers quickly to identify procurements that are of potential interest to them.

Moving on to the other amendments, the UK is moving forward in its activity to join the WTO agreement on Government procurement in its own right. We have reached the stage where GPA parties have agreed in principle to our market access offer and accession. However, in this instrument, we have taken precautions in case the UK’s accession to GPA has not been fully completed by exit day. One of the amendments ensures continued guaranteed access, rights and remedies on current terms for suppliers from existing GPA countries for a period of eight months from exit day. Without this amendment, suppliers from GPA parties would no longer have the guaranteed access, rights and remedies that they currently enjoy in our public procurement contracts. This will mitigate the risks of a short gap in GPA membership by facilitating continued market access.

Delays in the Trade Bill mean that we have also laid before Parliament for approval a further statutory instrument that would amend the regulations we are now debating, to implement a similar measure for certain bilateral trade agreements between the EU and third countries to which the UK is currently party via its membership of the EU. That will keep alive existing obligations towards suppliers in the countries with which the EU has, before exit day, entered into trade agreements, with provisions relating to public procurement, by which it is bound.

This second amending statutory instrument would also preserve existing duties towards GPA economic operators and amend the time period to 18 months from exit day. This change in the time period bring the GPA provisions in line with those related to the UK’s transitioned international agreements. This SI is also subject to the affirmative procedure.

Section 3 of the withdrawal Act has the effect that any EU legislation in force and applicable on exit day will automatically become part of UK law. The draft regulations modify various EU regulations and decisions that will become retained direct EU legislation. They also revoke for the whole of the UK the Commission’s implementing regulation that establishes standard forms of public procurement. The forms laid out in the Commission’s regulation will not be required for the new UK e-notification service. The service itself will be designed to elicit information in the form and the way it is to be submitted.

In summary, the regulations seeks to ensure that the current public procurement regime will continue to function after our withdrawal from the EU. It does not seek to make major policy changes or introduce new frameworks. Instead, it makes largely technical changes to correct deficiencies that will naturally emerge within our legislation on exit day. Left unamended, the existing regulations would not work as intended and would cause confusion and uncertainty for procurers and suppliers, hampering the public sector’s ability to obtain value for money from procurement. I therefore commend the regulations to the Committee.

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[Oliver Dowden]

The Opposition spokesperson raised a large number of issues and I shall seek to address them all. If I fail to do so, I will be more than happy to write to her.

The starting point is to remember that the regulations are not intended to change our procurement regime. The opportunity to do that will come afterwards, depending on the future relationship that we negotiate—or sooner, in a no-deal scenario. With the regulations, we seek to replicate existing procurement rules to give stability to companies engaged in procurement, so that they will know that the rules under which they currently bid will continue after we leave the European Union. Of course there are areas of procurement that we would like to reform, but the regulations are not the appropriate vehicle for doing so; it would be better for us to look subsequently at reforming procurement in the round.

Within the context of existing EU procurement rules, we have made significant progress. The hon. Member for Leigh mentioned SMEs. In the last Parliament, for the first time, this Government set a target of 25% of all Government business going to SMEs, and we met it. In this Parliament, we have set a target of 33% and we are making progress towards that. Indeed, I have announced further measures to help us reach that point. However, the regulations are separate from that; they are about ensuring continuity, which in my experience is what businesses are after.

I will try to address some of her specific points. The hon. Lady rightly said the e-notification scheme is due to come into force at the end of March. Ministers in the Cabinet Office take a close interest in that, and we continue to believe that it is on course to do so. I do not think that there is concern about that. A question was asked about what would happen if, as we hope to, we leave with a deal. In that instance, the measures will simply be deferred. They may have to be amended, depending on the nature of the future political framework that is agreed, and how we implement it through primary legislation.

The regulations do not provide for oversight by the CMA of the procurement regime. Agreed suppliers will, however, continue to be afforded remedies provided for in the regulations. In that way, contracting authorities and other entities will be held to account by the courts—again, essentially replicating the situation that we had before.

The hon. Lady rightly raised GPA membership. From listening to her, one could be forgiven for thinking that we were somehow desperately off-track on GPA membership. We have reached agreement in principle for the United Kingdom to join the WTO GPA. We are confident that we will very shortly be in a position to lay statutory instruments before Parliament to enable that to happen.

There is a small chance of a gap between the “in principle” accession to the GPA that is already agreed and the “in law” joining of the GPA, essentially because of the number of days required to lay the statutory instruments before Parliament. What we are trying to do with the regulations, and the subsequent SI that I highlighted, is to give certainty in that scenario to all contractors who are not based in the UK that they can continue to access the UK as if we remained members of the GPA.

Theoretically, in that small gap there is a chance that another country could decide that there was no basis for UK companies to access their market. However, there is a pretty small chance of that, first of all because we have moved unilaterally to say that we would allow them access. On the basis of reciprocity, we would expect it.

Furthermore, almost every country, I think bar South Korea, would require an Act to be passed by its Government to exclude UK companies, and it would have to apply to a situation where the procurement process had commenced, a UK company had applied for it, and the process had concluded. Given that we have already reached agreement in principle to join and we are progressing at a very good rate, the chances of that happening are exceptionally small. However, to provide clarity we have said that overseas actors can have access to our market.

[Mr Jayawardena]

Looking at the history, Moldova was the only country to object to our accession to the GPA. Following further discussion with our mission in Geneva, Moldova has now agreed to withdraw that opposition. Indeed, the members of the GPA committee have agreed to our accession.

[Oliver Dowden]

My hon. Friend is right. Essentially, political agreement has been reached for the United Kingdom to join the GPA; these are just the remaining technical stages. I would happily outline them in more detail, but I shall not bore the Committee. In essence, we have reached an agreement; these are just technical measures to ensure that it happens.

The hon. Member for Leigh set great store by the question of an impact assessment. She rightly highlighted the explanatory memorandum, which sets out the impact in broad terms. When impacts are assessed to be below an annual cost of £5 million, a full impact assessment is not required. Our initial analysis is that it falls below that threshold; therefore, such an assessment is not required.

I hope that I have addressed all the points that the hon. Lady raised. As I said, I will happily take up further points subsequently through correspondence. Again, I reassure the Committee that the regulations make provisions for the status quo. They take the existing EU procurement laws and replicate them so that there can be certainty. The only real change relates to notification. Clearly, we will not have access to the OJEU, so we are creating our own notification system. However, it will replicate the existing OJEU notification system.

There are, of course, questions surrounding how we can reform procurement. In the end, leaving the European Union provides the opportunity for us to look at it more flexibly. However, the proper way to do that is through full consultation, looking at a total process of reform. That will rightly be considered by Parliament through primary legislation, which is a much better vehicle for such reform than a statutory instrument. On that basis, I commend the regulations to the Committee.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Public Procurement (Amendment etc.) (EU Exit) Regulations 2019.

Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 6th February 2019 Commons Chamber

[Chris Green (Bolton West) (Con)]

1. What steps he is taking to encourage the use of innovative technologies to improve the delivery of public services.

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

Last month I announced five new public sector challenges, to be funded from the £20 million GovTech innovation fund. In the spring we will publish a strategy for the use of innovation in public services.

[Chris Green]

Can my hon. Friend confirm that the GovTech fund is being used to identify technologies with the potential to improve medical care and deliver better services at a lower cost?

[Oliver Dowden]

I am delighted to confirm that to my hon. Friend. There is huge potential here for improvement in public services. So far the GovTech Catalyst has funded two health-related challenges: the first seeks to improve the medication pathway for people entering custody, and the second will assess how machine learning could improve prediction and provision in relation to adult social care.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

At the weekend, 70 Labour MPs and Members of the European Parliament signed my letter to the Government asking them to review the operation of the EU settled status app for EU citizens, which is currently available only on Android phones and not on iPhones. What advice does the Cabinet Office gives other Departments to ensure that no digital discrimination is embedded in the new technologies that the Government are rolling out?

[Oliver Dowden]

The hon. Gentleman is right to raise the question of the digital verification system. It is perfectly possible to subscribe to it with any phone. The issue relates to the document verification, which can be carried out in respect of Android phones but not, currently, in respect of Apple phones. However, the Home Office is working on that as we speak.

[Scott Mann (North Cornwall) (Con)]

I know the Minister will be aware that delivering public services in rural areas is particularly challenging. Will he consider how he could use tech and innovation to facilitate better public services in areas such as those that I represent?

[Oliver Dowden]

My hon. Friend is absolutely right. One of the great aspects of the GovTech challenge fund is that it is often used in rural areas. In rural Scotland, for example, we are looking into how it could be used to help to ensure that the environment is properly managed, and we are working on other similar schemes.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Time and again, Mr Speaker, you have heard me raise the issue of deeply unsatisfactory broadband coverage in my constituency, which greatly impairs the delivery of vital public services. Responding to a question that I asked not long ago, the Prime Minister mentioned the shared prosperity fund. Might that fund be used to tackle the problem of very poor broadband coverage? If the Minister cannot give me an answer now, will he agree to meet me to discuss the issue?

[Oliver Dowden]

I am always happy to meet all Members, and I have heard the hon. Gentleman’s representation in respect of the shared prosperity fund. Our industrial strategy has already committed us to spending more than £1 billion on digital infrastructure, including £176 million on 5G and £200 million on broadband for local areas. There is, I know, an issue with the Scottish National party Government getting the money to the frontline, which is why my right hon. Friend the Culture Secretary has announced that in future, money will go directly to councils.

[Jo Platt (Leigh) (Lab/Co-op)]

When it comes to the delivery of technology with the use of public money, we know whose side the Government are on: their mates in the megafirms. Their spending on Cloud provision with just one company, Amazon Web Services, has increased by 8,000% since 2015. The next time the Minister signs off another multimillion-pound tech contract, will he perhaps spare a thought for one of the UK’s incredible small and medium-sized enterprises?

[Oliver Dowden]

The Government are committed to ensuring that SMEs win their fair share of Government contracts. Unlike the Labour Government, this Government have set the target of devoting a third of all spending to SMEs. However, the hon. Lady rightly raised the issue of Amazon Web Services. Let us look at the figures. AWS is a G-Cloud supplier. A total of £3.2 billion has been spent on G-Cloud. How much has been spent on AWS? Just £70 million, which amounts to less than 2.2% of total spending.

[Mohammad Yasin (Bedford) (Lab)]

2. What recent progress his Department has made on its proposed changes to public sector procurement.

[Oliver Dowden]

We are determined to deliver value for money for taxpayers through better procurement, and to support a healthy and diverse supply market. We recently announced measures including simplifying procurement processes, taking account of social value when awarding contracts, and excluding large suppliers from Government contracts if they cannot demonstrate prompt payment.

[Mohammad Yasin]

I thank the Minister for his answer. The number of businesses receiving late payments from the Cabinet Office has nearly tripled in the past two years. Does the Minister agree that this makes a mockery of the Government’s plans to crack down on public sector suppliers who pay late?

[Oliver Dowden]

Prompt payment is important to all businesses, particularly small businesses. That is why we have set a target for 90% of undisputed invoices from small and medium-sized enterprises to be paid within five days. We are making good progress, and six Departments are already exceeding that target. I know that there has been an issue in respect of the Cabinet Office, but I can give the hon. Gentleman the latest figures, from December, which show that 95% of invoices are now meeting the 30-day target and that 82% are meeting the five-day target.

[Greg Hands (Chelsea and Fulham) (Con)]

Will the Minister join me in welcoming moves to roll over the WTO Agreement on Government Procurement—the GPA—and in welcoming the access that that would give to UK companies competing abroad and the opening up of our own markets to foreign competitors?

[Oliver Dowden]

I know that my right hon. Friend has a great deal of experience in this area, and he is absolutely right to highlight the importance of the GPA. I am pleased that we have made progress and reached agreement in principle for the United Kingdom to join the GPA, and I am confident that we will have that in place shortly.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Is not the Minister guilty of a bit of jiggery-pokery? [Hon. Members: “Oh!”] The fact of the matter is that if the Government looked at good examples such as Huddersfield University and Kirklees Council, they would see the way in which they emphasise local and regional procurement, which brings in jobs and wealth and retains them in our communities. Why do this Government not do the same?

[Oliver Dowden]

We are absolutely committed to ensuring that we get the very best suppliers, which is why we have introduced a balanced scorecard approach. That allows suppliers to take into account a wide range of factors, including environmental factors and factors relating to the quality of produce. Those are the sort of reforms that this Government are committed to introducing.

[James Gray (North Wiltshire) (Con)]

The Government give a very welcome emphasis to the employing of small and medium-sized enterprises in Government contracts, and that is very good stuff, but does the Minister not agree that in reality, Government procurement processes are so complex, so difficult, so massive and so expensive that it is actually companies such as the defence primes that get the contracts and then hammer down the prices they pay to their subcontractors? How can we find better ways to ensure that SMEs win some of those valuable contracts?

[Oliver Dowden]

My hon. Friend is absolutely right to highlight the issue of SMEs winning contracts. This is why we have abolished complex pre-qualification questionnaires on small-value contracts, for example, and in November I announced that if major strategic suppliers were not paying their small providers on time, they could face being excluded from Government contracts.

[Tommy Sheppard (Edinburgh East) (SNP)]

I am aware that current statute means that wage rates cannot be mandated, but it is possible to use the procurement process to encourage employers to consider paying the real living wage in the context of fair work policies. Indeed, that is the process undertaken by the Scottish Government. Will the Minister consider following Scotland’s lead and using procurement to ensure that employers pay the real living wage?

[Oliver Dowden]

I thank the hon. Gentleman for his question. I hope that he will acknowledge the progress that this Government have made in introducing a national living wage for the first time. The effect of that national living wage, which will rise by almost 5% this April, is that an average person working full time on the national living wage will be almost £3,000 a year better off—and that is not counting the massive increase in the personal allowance that also cuts their taxes.

[Christian Matheson (City of Chester) (Lab)]

Of course, it is not a living wage; it is just a minimum wage re-badged.

The Government have repeatedly insisted that Interserve’s

“current intentions are a matter for the company itself.”

However, it emerged last night that Cabinet Office officials were playing an active role in talks to negotiate a rescue package. It seems that the Government cannot make up their mind whether they have a responsibility to intervene and protect public services and jobs or whether to let the market decide, so which is it?

[Oliver Dowden]

The Government are absolutely clear that their principal task is to ensure the continued delivery of public services, and that is what we have ensured in respect of our strategic suppliers. The hon. Gentleman raises the case of Interserve. I welcome this morning’s announcement, which I am sure he has seen, which demonstrates that it is making good progress towards refinancing, but we are clear that that is a matter between the lenders to that company and the company itself. The Government are not a party to those negotiations.

[Daniel Zeichner (Cambridge) (Lab)]

3. What assessment he has made of the implications for his Department's policies of the Information Commissioner’s January 2019 report, “Outsourcing oversight? The case for reforming access to information law”.

Government Estate

Oliver Dowden Excerpts

Wednesday 19th December 2018 Written Statements

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

I have today laid before Parliament, pursuant to section 86 of the Climate Change Act 2008, “State of the Estate in 2017-18”. This report describes the efficiency and sustainability of the Government’s civil estate and records the progress that the Government have made since the previous year. In 2017-18 the central estate reduced in size by 2% and is now 7.7 million square metres and central estate operating costs reduced by £22 million, in real terms. At the same time, vacant space across the Government estate is just 1.4%, compared to 7.1% in the private sector. The estate continued to contribute to sustainability targets set by the Government, showing a 39% reduction in greenhouse gas emissions, a 55% reduction in paper use and a 40% reduction in waste since 2009-10. The report is published on an annual basis.

[HCWS1211]

Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 19th December 2018 Commons Chamber

[Mr Gary Streeter (South West Devon) (Con)]

2. What steps his Department is taking to move civil service jobs out of London as part of the Government’s industrial strategy.

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

We are committed to supporting economic growth across the United Kingdom. We have established the Places for Growth programme to relocate civil service roles to the regions and nations. That creates a presumption that newly created public bodies will be located outside London.

[Mr Streeter]

I thank the Minister for his answer. Can I invite him or the Secretary of State to come to Plymouth with me early in 2019 to see for themselves how digital connectivity has transformed our city? It is not just a great place to live, as it has always been, but now a great place to work and run a business. Would it not be very good for the Government to have a Government hub there?

[Oliver Dowden]

I know, thanks to my hon. Friend and other hon. Members, that Plymouth is a great place to work and do business. A number of potential hub locations are under active consideration. I would of course be delighted to meet a delegation from Plymouth, and I know that my right hon. Friend the Chancellor of the Duchy of Lancaster intends to visit Plymouth shortly.

[Chris Evans (Islwyn) (Lab/Co-op)]

When the Minister is looking to relocate civil service jobs outside London, will he look at post-industrial areas, which traditionally have high levels of unemployment, as a way to stimulate the jobs market?

[Oliver Dowden]

That is precisely the idea behind the Places for Growth strategy, which is to ensure Government activity benefits all parts of the United Kingdom. That is why we have created hubs across the United Kingdom—for example, in Edinburgh, Glasgow, Belfast, Leeds, Birmingham and Cardiff, to name just a few.

[David Duguid (Banff and Buchan) (Con)]

The Minister will be aware—at least, I hope he is aware—of the success of the Oil and Gas Authority being based in Aberdeen, as was presented in evidence to the Scottish Affairs Committee yesterday by both our right hon. Friend the Minister for Energy and Clean Growth and the Minister for Energy, Connectivity and the Islands from the Scottish Government. Does the Minister agree that moving civil service jobs out of London using that model has the potential to boost local economic growth across the UK?

[Oliver Dowden]

My hon. Friend is absolutely right. That forms a core part of the Government’s industrial strategy. As I have said, we have already created hubs in both Edinburgh and Glasgow, but I am open to all representations for further relocations of Government activity.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Mr Speaker, you would be surprised if I did not mention the great benefits in this of the far north of Scotland: a lovely environment, splendid education and cheap housing and accommodation. Positioning civil service jobs in the north of Scotland, alongside Scottish civil service jobs, would be good for the relationship between Scotland and London, and it would help strengthen the Union.

[Oliver Dowden]

The hon. Gentleman makes the case exceptionally well. That is precisely why we are ensuring that Government jobs are located in all parts—all nations—of our United Kingdom. I know that there is already considerable space activity in his constituency.

[Carol Monaghan (Glasgow North West) (SNP)]

3. If he will make it his policy to introduce the real living wage across all Government Departments and to seek accreditation from the Living Wage Foundation.

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

We are addressing this issue through the application of the statutory national minimum wage and the national living wage. This is based on the advice of the Low Pay Commission. From April, the national living wage will rise again—from £7.83 to £8.21 per hour—handing a full-time worker a further £690 annual pay rise.

[Carol Monaghan]

This Government like to talk about employment levels, but they stay silent on the fact that many people are now struggling with in-work poverty, which is rising among working parents in particular. Does this Minister believe that his kid-on living wage is more effective at tackling in-work poverty than the real living wage promoted by the Living Wage Foundation?

[Oliver Dowden]

The hon. Lady is absolutely correct: we do continue to talk about employment, because 2 million jobs have been created under this Government. On the point about the national living wage, we were of course the first Government actually to introduce a national living wage. The aim is that that will rise to 60% of median income by 2020, and it is actually rising faster than the real living wage.

[Tommy Sheppard (Edinburgh East) (SNP)]

Everyone in the country knows that the Government’s pretendy living wage is not the same as the real living wage. It pays an awful lot less, and it excludes millions of younger workers. At this season of good will, will the Government not commit to making it their policy next year to seek accreditation from the Living Wage Foundation and show leadership in the country in taking on low pay?

[Oliver Dowden]

I think the hon. Gentleman is a little dismissive of the national living wage, which, since it was introduced, has led to a pay rise for people on the lowest incomes of almost £3,000 a year. It is rising faster than his proposal, and it will reach 60% of median income by 2020. Post that, we will look again at further increases.

[Afzal Khan (Manchester, Gorton) (Lab)]

4. What recent assessment he has made of the capacity of the civil service to manage additional responsibilities arising from the UK leaving the EU.

--- Later in debate ---

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

The hon. Gentleman has raised the issue of Capita’s Army recruitment contract. I can tell him that we have a plan to address those challenges. We are working on a manning campaign, and we are in close contact with the chief executive of Capita to deal with precisely that issue.

[Derek Thomas (St Ives) (Con)]

T7. It is right that we try to ensure that the voting system is as fair as possible. What work is the Minister doing to improve the current system, and does she agree that a close link between constituents and their representatives is important?

Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 14th November 2018 Commons Chamber

[Johnny Mercer (Plymouth, Moor View) (Con)]

6. What assessment he has made of the potential effect of Government hubs on levels of efficiency in the civil service.

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

The hubs programme saves money and creates a better place to work by bringing together Government activity on to single sites. We make extensive use of shared spaces, smarter working and workplace design. This encourages productivity as well as reducing vacant space. Indeed, in total, the programme is saving £2.5 billion over 20 years.

[Johnny Mercer]

The Minister knows what a capable and deeply talented Minister he is, and there are plenty of people like him in Plymouth, Moor View. Does he agree that Plymouth would be an ideal place for one of these Government hubs?

[Oliver Dowden]

Flattery will get my hon. Friend everywhere, and may I repay it by saying that I know what a powerful advocate he is for the city of Plymouth? He once again makes his case exceptionally well. While further hub locations cannot be confirmed until commercial negotiations have concluded and Departments have informed staff, future locations are under active consideration.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

There is cross-party support for moving Government hubs to Plymouth. What support can the Minister give to local authorities such as Plymouth City Council, which is working to create the buildings and land for these Government hubs to move into?

[Oliver Dowden]

The hon. Gentleman rightly highlights the Government’s One Public Estate programme, and the example he cites in Plymouth is just one of many. Overall we expect to release land for 25,000 new homes and create 44,000 jobs by 2020.

[Ross Thomson (Aberdeen South) (Con)]

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

GOV.UK Verify Programme

Oliver Dowden Excerpts

Tuesday 9th October 2018 Written Statements

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

I want to update the House on the GOV.UK Verify programme, on the creation of a digital identity market, and the provision of a digital identity service to Government.

Since its inception, GOV.UK Verify has sought to create an effective standards based digital identity market in the UK. International examples point to the challenges in successfully creating a secure digital identity framework for the public and private sector. I am proud that the UK is regarded as a global leader in this space, and that the innovative assets and standards created by the GOV.UK Verify programme have been utilised by numerous international Governments.

GOV.UK Verify is now sufficiently mature to move to the next phase of its development. The private sector will take responsibility for broadening the usage and application of digital identity in the UK.

I can confirm that contracts have been signed with a number of private sector identity providers, for an 18 month period, and with capped expenditure. These commercial arrangements formalise the transition to a private sector led model.

The Government have an immediate and growing need for digital identity. As such, I am pleased to confirm that the GOV.UK Verify programme will continue providing a digital identity service to the public sector.

Poorly secured services are vulnerable to attack from cyber crime and other hostile activity. GOV.UK Verify enables citizens to securely prove that they are who they say they are to a high degree of confidence when transacting with Government online. It is a major enabler and a critical dependency for Government’s digital transformation.

The Government will continue to provide state backed assurance and standards to ensure there is trust and confidence in the emergent digital identity market. The Government expect that commercial organisations will create and reuse digital identities, and accelerate the creation of an interoperable digital identity market. This is therefore the last investment that the Government will provide to directly support the GOV.UK Verify programme. It will be the responsibility of the private sector to invest to ensure the delivery of this product beyond the above period.

The approach announced today ensures that GOV.UK Verify will continue to protect public sector digital services from cyber threats, including identity fraud, and other malicious activity. In addition, the contracts enable the private sector to develop affordable identity assurance services that will meet future private and public sector needs.

I am pleased that the Government can continue to support the creation of a digital identity market, and the work of the GOV.UK Verify programme.

[HCWS978]

Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 12th September 2018 Commons Chamber

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

4. What steps he is taking to encourage technological innovation in tackling social challenges and delivering public services.

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

I am determined that the public sector embraces the huge opportunities for better public services at lower cost provided by technology. That is why last week I announced five new public sector challenges from the GovTech innovation fund and why I am also leading the development of a public services innovation strategy to be published next spring.

[Trudy Harrison]

I thank the Minister for that answer. Over the summer I wrote to all my 37 care homes and GP practices and visited most of them. They are facing unprecedented challenges with recruitment and retention. How will technology help in that regard?

[Oliver Dowden]

I thank my hon. Friend for that question. I know that she is committed to this issue. We, too, are committed to using emerging technologies to improve the quality of care for patients and to empower staff. Under one of the GovTech challenges last week, we are working with a healthcare trust to ensure prescriptions are not interrupted when people move between care providers and, as Members will have seen, my right hon. Friend the Health Secretary is also very much committed to this agenda.

[Sir David Evennett]

I welcome what my hon. Friend is doing in this area, but what steps are the Government taking to harness the power of technology to help to tackle the problem of loneliness, which the Jo Cox Commission on Loneliness, the Prime Minister and Members across this House have done so much to highlight?

[Oliver Dowden]

My right hon. Friend raises an important point. Under the GovTech innovation fund, in collaboration with Monmouthshire County Council, we are working to investigate a solution to identify vehicles with spare capacity to tackle loneliness and rural isolation. That is another example of the great potential of technology to help to alleviate loneliness across society and to support people in having meaningful social relationships.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

At the weekend, I visited the Clipper, a converted pub on Union Street in Plymouth that is using crowdfunding technology in conjunction with the local authority, Plymouth City Council, to raise money for a refit. What support is the Minister giving to local authorities and communities to use new technologies to raise funds, especially in a time of austerity?

[Oliver Dowden]

The hon. Gentleman makes an important point, and I would be happy to discuss the example that he has raised. Local authorities have frequently bid for these GovTech funds. As I said, Monmouthshire County Council has been successful, as have local authorities in Northern Ireland, and I encourage others to make a bid when the next round opens shortly.

[Hywel Williams (Arfon) (PC)]

What progress is being made to ensure that my constituents can claim universal credit online through the medium of Welsh?

[Oliver Dowden]

The Government Digital Service is committed to ensuring full accessibility to all public services, including in our home nation languages, and it will certainly look into that point.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

My hon. Friend will be aware that, across the public service, appointments are being missed with experts including general practitioners, consultants, nurses and employment advisers. Is there a role for technology in prompting members of the public to attend these expensive and important appointments?

[Oliver Dowden]

My right hon. and learned Friend is absolutely correct, and this is a perfect example of how we can use technology. Indeed, in my experience many GP surgeries already use methods such as text messages to prompt people not to miss their appointments. He will have seen from recent announcements that the Health Secretary is genuinely committed, as are the Government, to investing large sums in the greater use of technology in healthcare.

[Jo Platt (Leigh) (Lab/Co-op)]

The Government’s record on technical and digital innovation is appalling. Their flagship Verify system is so flawed that the NHS and Her Majesty’s Revenue and Customs have both rejected it. Having spent six years and £130 million of public money developing the system, the Government cannot even convince their own Departments to register. Judging by this dismal record, does the Minister agree that the only technological innovation this Government can stimulate will be overdue, over budget and under-performing?

[Oliver Dowden]

Specifically on Verify, I would urge the hon. Lady not to read everything that is being speculated on in the newspapers. The Government are committed to ensuring secure online digital identities, and Verify has already delivered for 2.7 million people. More broadly, let us take the example of gov.uk, which has had 5.1 billion sessions and 15.2 billion page views. That did not happen when the Labour party was in power. Let us also take the example of Notify, which is used by hundreds of organisations. The Government Digital Service is a genuine innovation of this Government, and it is delivering seamless services across Government Departments.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

5. What contingency plans his Department is making for no deal being reached on the UK leaving the EU.

--- Later in debate ---

[Nic Dakin (Scunthorpe) (Lab)]

7. What recent assessment he has made of the effectiveness of the Government’s steel procurement policies.

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

The Government are clear that we will do all we can to support our steel industry. The publication of indicative pipelines of Government steel requirements, alongside revised procurement guidance, ensures that United Kingdom steel producers have the best possible chance of competing for major public sector contracts. We will be reporting on our performance later this year.

[Nic Dakin]

The UK steel industry continues to face challenges. The Government promised in their 2016 guidance on steel procurement that they would publish individual Departments’ performance on steel procurement. When will they publish that information and be transparent about this?

[Oliver Dowden]

I am happy to update the hon. Gentleman on that point. I have consulted the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Watford (Richard Harrington). He has written to Departments over the summer reminding them of that duty. We are reiterating our commitment to produce that information before the end of the year.

[David Hanson (Delyn) (Lab)]

9. What assessment he has made of the merits of the by-election system used to elect hereditary peers in the House of Lords.

--- Later in debate ---

[Peter Heaton-Jones (North Devon) (Con)]

T2. When considering the relocation of civil service jobs outside London, will the Minister please remember that the south-west is a great place to live, work and do business, and that the best place is North Devon?

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

My hon. Friend, as ever, makes a strong case for his region. The Places for Growth programme demonstrates our commitment to rebalancing the economy by moving Government jobs away from London and the south-east, and the One Public Estate programme is supporting this collaboration. I am pleased to say specifically that the Devon and Torbay partnership expects to deliver 288 jobs and land for 201 homes by 2020.

[Anna McMorrin (Cardiff North) (Lab)]

T3. We know that the Cabinet Office is preparing for the very real threat of no deal, with secret Cobra meetings and civil contingency planning. Business leaders are warning of the disaster of a no deal or a bad deal. Is it not about time that we put this decision—the biggest facing our generation—back to the people for a people’s vote?

[Robert Halfon (Harlow) (Con)]

T4 . The Government have identified £1 billion that could be saved through procurement by hospitals. What work is the Cabinet Office doing to support that £1 billion saving so that we can release £200 million of it to scrap hospital car parking charges?

[Oliver Dowden]

I know my hon. Friend’s long-standing commitment to this cause. We are committed to delivering value for money for the taxpayer by extending best procurement practice into the wider public sector. The Crown Commercial Service, which manages procurement of common goods and services for both central Government and the wider public sector, including the NHS, has already delivered more than £600 million of savings this year.

[Paul Blomfield (Sheffield Central) (Lab)]

T5. The Minister chairs the cross-departmental homelessness reduction taskforce. Rough sleeping is a huge concern to my constituents in Sheffield, but the voluntary and statutory sector tells me that it is held back from tackling it by disproportionate cuts to local government. The recent Ministry of Housing, Communities and Local Government strategy provided no new money, so will his taskforce look at the issues so that we can actually do something?

[Oliver Dowden]

The hon. Gentleman raises a very important point. The homelessness and rough sleeping implementation taskforce, which is chaired by my right hon. Friend the Chancellor of the Duchy of Lancaster and on which I serve, supports the Government’s cross-Government strategy, which was announced earlier this summer. The taskforce is also monitoring the implementation of the new Homelessness Reduction Act 2017. I would be happy to meet the hon. Gentleman to discuss the proposals he raises directly.

[Several hon. Members rose—]

--- Later in debate ---

[Paul Scully (Sutton and Cheam) (Con)]

Recent figures show that almost £200 million of taxpayers’ money was spent on trade union activists last year. Would not Transport for London, for example, be better advised to spend the £5 million that it spent on trade union activities on transport for London?

[Oliver Dowden]

My hon. Friend is absolutely right. Although trade unions of course play an important role in the modern workplace, facility time in the public sector must represent value for money, which is why we have taken a transparent approach to it. We estimate that more than £120 million is being spent on it. Departments and Government agencies must seek to reduce that spending, as I am pleased to say the Cabinet Office has done; we are spending less than 0.01% of our budget on it.

[Julie Elliott (Sunderland Central) (Lab)]

T6. Will the Minister tell the House what steps he has taken to tackle the gender pay gap in the civil service?

--- Later in debate ---

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

Since 2010, the central civil service has been cut by 20%, which has severely reduced overall effectiveness and specialist knowledge. In the light of the demands placed on Departments by Brexit, do the Government agree that they are paying the price for that short-sightedness?

[Oliver Dowden]

The Government remain strongly committed to having an effective civil service. Thanks to funds provided by the Government, we now employ 7,000 more civil servants to deal with Brexit. With the pay settlements that we are reaching on a Department-by-Department basis, we are ensuring that civil servants are properly rewarded.

[Tom Pursglove (Corby) (Con)]

Ministers were right to listen and act on public sector steel procurement. How are the new procurement regulations bedding down, what is their effect and what benefit are they bringing to the UK steel industry?

[Oliver Dowden]

We are clear that we will do everything that we can to support our precious steel industry. All central Government Departments are now required to evaluate the social and economic benefits of procurement decisions, alongside price. That has meant that the UK’s steel producers are now in the best possible position to compete for Government work, and UK steel suppliers are able to compete effectively with international suppliers.

The Prime Minister was asked—

Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 27th June 2018 Commons Chamber

[Bim Afolami (Hitchin and Harpenden) (Con)]

11. What steps his Department is taking to encourage the use of small businesses in Government procurement.

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

Small businesses are the backbone of our economy, and we are determined to continue to level the playing field so that they can compete for Government contracts. That is why in April I announced a number of measures to help achieve that and have recently met the Government’s strategic suppliers and Ministers in several Departments to ensure that those measures are delivered.

[James Duddridge]

I thank the Minister for that reply. Specifically, how will coastal towns such as Southend-on-Sea benefit from the changes in this procurement procedure?

[Oliver Dowden]

As my hon. Friend will know, small businesses generate more than 16 million jobs and we are determined to level the playing field so that those in coastal towns such as Southend get their fair share of prosperity and win Government contracts. I encourage businesses in Southend to look on Contracts Finder, on which more than 17,000 small businesses are already registered, for procurement opportunities.

[Chris Davies]

Does my hon. Friend agree that it is vital that we have a vibrant and mixed group of suppliers and small businesses from all corners of the UK, including Wales, Scotland and Northern Ireland, and that they should all be considered equally in the procurement process?

[Oliver Dowden]

My hon. Friend is absolutely correct. It is crucial to ensure that we have a diverse supplier base. We have made a number of changes to the Government procurement processes to assist small businesses, including requiring prime contractors to advertise subcontracting opportunities on the Government Contracts Finder. We also divide contracts into separate lots, including by region, when that makes commercial sense.

[Bim Afolami]

I thank the Minister for his responses. As seen from my recent work on the Public Accounts Committee, there sometimes appears to be a conflict between large strategic suppliers who see themselves as aggregators of several procurement contracts for small business and other instances in which small businesses would like to get certain contracts directly from Government. Will he explain the Government’s thinking on how to balance those two approaches?

[Oliver Dowden]

We already require buying authorities to disaggregate contracts so that small and medium-sized enterprises can compete. However, there will, of course, be contracts in which disaggregation would affect value for money. That is why we recently announced that when large contractors are successful, they will be required to advertise those subcontracting opportunities on Contracts Finder, so that small businesses can bid.

[Julie Cooper (Burnley) (Lab)]

What assessment has the Minister made of the cost implications where outsourced contracts have been overturned by the High Court because of incompetent procurement processes? I refer specifically to the expensive mess created by Conservative-controlled Lancashire County Council in connection with a Virgin contract for children’s services.

[Oliver Dowden]

As the hon. Lady will know, the Cabinet Office has extensive processes to ensure successful procuring. If she is questioning the overall purpose of procuring, I refer her to the comments made earlier by my right hon. Friend the Minister for the Cabinet Office. In addition, research shows that public authorities save at least 11% by contracting out services. That means more money for health and education.

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

The Minister referred to small businesses as the backbone of our economy. What plans does he have over this Parliament to strengthen that backbone and increase targets in terms of accessibility of procurement for small businesses?

[Oliver Dowden]

The hon. Gentleman raises an important point. In the previous Parliament, we set and met a target of 25% of all Government procurement going to small businesses. We set a challenging target in this Parliament of a third of all procurement going to small businesses. I am taking a number of steps to help us to try to achieve that.

[Bill Esterson (Sefton Central) (Lab)]

6. Thirty thousand Carillion suppliers are owed £2 billion in unpaid invoices. When will Ministers enforce the prompt payment rules for Government contracts and stand up for small businesses, or is the reality that under this Prime Minister the Conservatives really are the anti-business party?

[Oliver Dowden]

We are absolutely committed to prompt payment. That is why the Government pay over 96% of their suppliers within 30 days. In respect of application to contracting, I have just announced a consultation to ensure we can exclude contractors if they fail to pay small businesses on time.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

4. When the Government plan to respond to the report of the Lord Speaker’s Committee on the size of the House of Lords.

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[Chris Elmore (Ogmore) (Lab)]

13. What steps he is taking to widen access to senior public appointments.

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

We want to ensure that public boards represent the people they serve. That is why in December we launched our diversity action plan, which committed to 50% women and 14% ethnic minority representation by 2020. Just last month, I appointed Lord Christopher Holmes to undertake a review of removing barriers that disabled people might face when applying for public appointments.

[Vicky Foxcroft]

What proportion of appointments made to public bodies are people from working-class backgrounds and what proportion went to private school?

[Oliver Dowden]

The hon. Lady raises a very important point about our making sure that public appointments reflect the country as a whole. That is why we have taken a number of measures to increase diversity based on the Bridge report recommendations.

[Chris Elmore]

I am sure that the Minister agrees that we have a huge amount of talent for public appointments, including in Wales, Scotland and Northern Ireland, so will he set out what he is doing to ensure that regional voices are heard around senior public appointments?

[Oliver Dowden]

The hon. Gentleman is absolutely right. Diversity means not just ethnic diversity or gender diversity, but regional diversity. That is why, for example, we recently held an event in Glasgow to encourage people in Scotland to apply for public appointments.

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

One way in which we could widen public appointments is to limit the amount of them to just two per person, instead of the gravy train that seems to appear as far as public appointments are concerned.

[Oliver Dowden]

As ever, my right hon. Friend is absolutely correct, and I take on board his recommendation. Diversity also means ensuring that we do not have the same old faces constantly applying for and succeeding in winning public appointments. That is why, as part of our diversity measures, we are encouraging a wider array of people to apply for public appointments.

[Tom Pursglove (Corby) (Con)]

Does my hon. Friend think that online abuse acts as a deterrent to people putting themselves forward not just for elected office, but for public appointments? Does he also agree that such abuse should be dealt with robustly and that we all have a responsibility to call it out?

[Oliver Dowden]

Yes, my hon. Friend is absolutely right, and we will be launching a consultation shortly to deal with exactly that point.

[Christian Matheson (City of Chester) (Lab)]

Edward Timpson was appointed chair of the Children and Family Court Advisory and Support Service and of the new Child Safeguarding Practice Review Panel. Andrew Tyrie has been appointed chair of the Competition and Markets Authority. Baroness Stowell was appointed chair of the Charity Commission. They are all probably worthy appointments individually, but a clear pattern is emerging, so will the Minister confirm that the main criteria now for senior public appointments is that someone has to be a former Tory MP or Cabinet Minister?

[Oliver Dowden]

As ever, the hon. Gentleman makes a rhetorical flourish. Sadly, the facts just do not bear it out. The Government’s code for public appointments is clear that political activity is neither a judgment of merit nor a bar to becoming a political appointee. If he looks at the statistics, he will see that of 1,000 candidates in the past year—2016-17—4.9% were Conservative and 4.8% were Labour.

[Luke Graham (Ochil and South Perthshire) (Con)]

8. What plans he has to mark National Democracy Week.

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[Faisal Rashid (Warrington South) (Lab)]

T7. Will the Minister please explain how the Government justify wasting time and taxpayers’ money on the “testing and scrutiny” of contractual arrangements, only to ignore their own highest possible risk rating for Capita and award it the fire and rescue contract?

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

As the hon. Gentleman will know, the Cabinet Office has extensive functions to ensure that we award contracts only to companies that offer the very best value, and that was exactly the case in that instance.

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

rose—

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[Andrew Bridgen (North West Leicestershire) (Con)]

T5. What recent discussions has my hon. Friend had with Cabinet colleagues about the cost to the taxpayer of public sector workers’ taking trade union facility time?

[Oliver Dowden]

My hon. Friend is absolutely right. For too long, unions in the public sector have received taxpayer funding for an activity that is inadequately controlled and poor value for money, which is why we are introducing transparency in respect of facility time. We believe that proper management could save our taxpayers up to £100 million.

[Diana Johnson (Kingston upon Hull North) (Lab)]

The anniversary of the Prime Minister’s announcement of a public inquiry into contaminated blood is fast approaching. Can we expect a statement in the House to say that the terms of reference have finally been agreed and the public inquiry can get on with its work?

[Richard Drax (South Dorset) (Con)]

T8. What reassurance can my hon. Friend give that Departments will work together to deliver our ambitious plans to create more jobs and prosperity in Weymouth and on the Isle of Portland in the years ahead?

[Oliver Dowden]

Departments across the Government are committed to working with local partners in Weymouth and Portland to build jobs and prosperity. In July, representatives of a range of Departments will visit local partners to see for themselves the enormous opportunities that exist in the area, and to identify how Government policies and programmes could help to support their ambitions.

The Prime Minister was asked—