Covid-19: NAO Report on Government Procurement

Rachel Hopkins Excerpts

Wednesday 9th December 2020 Westminster Hall

[Rachel Hopkins (Luton South) (Lab)]

It is a pleasure to serve under your chairship, Ms Eagle, and I congratulate my hon. Friend the Member for Liverpool, Walton (Dan Carden) on securing this vital debate. I would like to respond to the hon. Member for North East Derbyshire (Lee Rowley) by saying that many of us were not at the PAC 18 months ago because we were not in this place, and I am pleased to see so many of the new intake—at least seven of us—challenging the Government, as is our role.

The Select Committee on Public Administration and Constitutional Affairs, of which I am a member, has been looking at lessons learned from the covid response, including the appointment process of key figures in the UK’s response, and I was pleased that this point has been raised by Members. We found that there was a clear lack of due process, likely conflicts of interest, and potential cronyism. Lord Evans, chair of the Committee on Standards in Public Life, said only a couple of weeks ago during our inquiry that “urgent procedures” exist in times of urgent need, but added:

“Even if many of the people are exactly the right people, it is better if people know they are the right people because there has been proper, open competition.”

That is a key theme, whether those roles are paid or unpaid.

That theme has also come through in the NAO’s report, which is damning. It shows that contracts have been awarded without due diligence, with a lack of documentation, no clear audit trail or transparency. In some instances contracts were awarded retrospectively, for work already done. Hundreds of contracts have been fast-tracked for companies through the Cabinet Office’s VIP process, and while this may have been the same process as referred to earlier, many companies were referred by Ministers, officials, MPs and peers. The NAO found that firms in the VIP lane were far more likely to be awarded contracts than those that were not—a one in 10 chance, against a chance of approximately one in 100 for those outside the priority lane. That is disgraceful.

The sheer lack of due process has led to the waste of millions of pounds. I will not go through a list of the companies involved, because many have been mentioned already, but I just want to say that this angers me. In the public sector, we have many workers who have now faced 10 years of austerity, who cannot even justify getting Post-It notes from the store cupboard, yet this Government are mismanaging taxpayers’ money and are refusing to give public sector workers a pay rise. It is shameful.

--- Later in debate ---

[Julia Lopez]

I am afraid I am really short of time. Forgive me; I want to get through the content.

As I say, no PPE contracts were awarded by reason of who referred them. I remind colleagues that, ultimately, there was very little waste. Of all the product in question, so far only 0.5% of what was ordered was found to be unusable. That is not to say that we cannot improve. Admittedly, there was not an adequate stockpile, and the lack of a central stock control system made it very difficult to get a clear grip of the demand signals coming in through the NHS. That is an extremely important issue to rectify.

[Rachel Hopkins]

Will the Minister give way?

[Julia Lopez]

I am so sorry; I would really like to make progress.

We have also had to rapidly address a strategic over-reliance on China. We have now built up our national capability and resilience, with the potential for 70% of PPE to be produced in the UK. I hope that those lasting national enhancements will be bolstered by the work of the Department for International Trade’s Project Defend, which is looking at other areas where we are critically dependent on other countries for important parts of our manufacturing.

The NAO was absolutely right to identify delays in publishing documentation in relation to emergency procurement. The sheer pace of activity meant that documentation was not perfect. The result is that contracts have not been published online as quickly as they should have been, and it has been left to DHSC to piece together relevant paperwork from the different IT systems, partly because of the large team that had to be brought in from outside DHSC. I very much regret that that lag in our normal transparency timescale has created a sense of mistrust, but we are nearly there. At the time that the NAO did its scrutiny work, only 50% of required contract notices had been published. As of 3 December, it is now 96% of PPE contract award notices on Tenders Electronic Daily, which is the European journal, and 94% on Contracts Finder.

I have concentrated today on PPE, as that is a large focus of the NAO’s two most recent reports. However, the NAO also looked at communications contracts, which the hon. Member for Liverpool, Walton referred to, so I would like to spend a moment on that. For context, a number of external research agencies were engaged by the Cabinet Office’s comms unit to test the public reaction to Government messaging on public health. That was crucial to helping us understand people’s attitudes and behaviours during this time and refine public health messaging accordingly to drive behavioural change.

At the time I began my ministerial role, there were reports suggesting that some of those contracts for comms services had been improperly let, and naturally I was unhappy to hear that. Unfortunately, I cannot comment in detail on the specifics of those contracts because the Department is still working on a detailed defence and disclosure in the ongoing judicial review proceedings. However, I can say that following a preliminary internal fact-finding exercise, the Cabinet Office resolved to delve into that properly and commissioned an independent expert review, led by Nigel Boardman, who sits in the Department for Business, Energy and Industrial Strategy and is also a well-respected legal professional, to consider those findings and set out how we could improve, particularly looking at the processes and guidance that teams in the Cabinet Office have access to. The review and its results were published yesterday on gov.uk. The report is forensic in its analysis and hard-hitting in its recommendations. I am pleased to tell colleagues that we will take forward all 28 recommendations in full.

Before I close, I want to say a little about the wider civil service reforms that we are proactively pursuing to address some of the concerns beyond the NAO report. During this time of crisis, people have been concerned about the use of consultants. We are looking at how we can better skill-up civil servants, reduce our reliance on consultancy, and potentially have our own in-house consultancy. We are also consolidating the number of IT systems used across the civil service so that it is easier to move people around internally at speed, and for those systems to be compatible. As has been referenced, we will soon launch our procurement Green Paper. I very much encourage all hon. Members to engage with the consultation process, because once we leave the transition period our country will have an extremely important opportunity to look at these issues.

The proposals have long been in development and will include specific measures to strengthen transparency, making sure that we can have a choice of direct award and more competitive tendering during crises. At the moment it seems that we have either the full-fat procurement, which is much too slow in emergency situations, or direct awards, which lead to the kinds of concerns that we have debated this morning. I know that the hon. Member for Liverpool, Walton is particularly concerned about issues of company conduct in procurement. The Green Paper will include proposals to use exclusion rules to tackle unacceptable supplier behaviour, such as tax evasion, embedding transparency by default and developing faster review methods to speed up the court process on legal challenges to genuinely improper procurements.

There is a lot to say, so I am sorry to rush through it all, but I will end by saying that the public are absolutely right to demand that we spend their money with care. I hope the proactive and candid approach that I have set out this morning is reassuring. I remind colleagues that we were procuring for a purpose, and that purpose was to get us through the pandemic. We achieved sufficient PPE for the NHS. We now have 32 billion items of PPE, with no reports of outages, and we have established a four-month stockpile of PPE from November 2020 onwards. Given the extraordinary context, that is an extraordinary feat.

Finally, I pay tribute to civil service colleagues in the commercial function. They might not be on the frontline of the NHS, but they have done extraordinary things in a very difficult operating context. I thank them for all the work that they have done.

Oral Answers to Questions

Rachel Hopkins Excerpts

Wednesday 9th December 2020 Commons Chamber

The Secretary of State was asked—

[Rachel Hopkins (Luton South) (Lab)]

What recent discussions he has had with Cabinet colleagues on promoting green industrial jobs in Scotland.

[Tony Lloyd (Rochdale) (Lab)]

What recent discussions he has had with Cabinet colleagues on promoting green industrial jobs in Scotland.

[The Parliamentary Under-Secretary of State for Scotland (David Duguid)]

The Secretary of State for Scotland meets Cabinet colleagues regularly to discuss all matters of importance to Scotland. This Government are committed to levelling up across the whole United Kingdom, and that is why the Prime Minister has set out his ambitious 10-point plan for our green industrial revolution, which will support up to 250,000 jobs.

[Rachel Hopkins]

The SNP has joined the Tory party in abandoning workers at BiFab, forgoing the green industrial jobs they claim to want to encourage. Within days of the Scottish Government withdrawing their support for BiFab, they launched the Scottish National Investment Bank, stating it would support Scotland’s transition to zero carbon emissions. They say one thing and do another. What discussions has the Secretary of State had with Scottish Ministers about protecting jobs at BiFab and developing a green supply chain in Scotland to facilitate the expansion of its offshore wind capacity?

[David Duguid]

After exploring all options, both the UK and Scottish Governments have concluded that there is currently no legal right to provide further financial support to BiFab in its current form. A joint working group will be formed between the Scottish and UK Governments to consider ways to strengthen the renewables supply chain in Scotland and to secure future possibilities and opportunities. Both of Scotland’s Governments have committed to exploring options for the future of the yards and to strengthen measures to support the renewables supply chain.

Public Health

Rachel Hopkins Excerpts

Tuesday 1st December 2020 Commons Chamber

[Rachel Hopkins (Luton South) (Lab)]

It is a pleasure to follow the hon. Member for Thurrock (Jackie Doyle-Price). I agree with many of the points she raised. We are on the cusp of vaccine roll-out, but the Government’s response must not underestimate the continued threat of the virus. We know that the previous three-tier system did not work, and we ended up in a national lockdown. Nobody wants a repeat of that. The Government should have learned from those mistakes, but it does not seem that they have.

Not only have the Government failed to fix test and trace during the lockdown, but they are recklessly ploughing on with the tiered system and the insufficient economic support package. The £20-a-head business support grant is only a one-off payment, and businesses are in the dark about the future of the furlough scheme. Furthermore, tier 1 areas receive the same support package for just 28 days of national lockdown as areas now facing many months in tier 3. The Federation of Small Businesses said that the spending review was

“a missed opportunity to help small business owners—not least those who have been excluded from support measures”.

I, too, am very concerned about the impact of these regulations on the pub and hospitality industry. The situation in the Office for Budget Responsibility’s alarming employment forecasts has been accelerated by the Government’s approach to the sector, which expects to have lost nearly 600,000 jobs by February 2021. That is in the space of a year. UKHospitality states that 98% of the hospitality trade will be in either tier 2 or tier 3 and will see a 70% drop in trade for the whole of December, representing £7.8 billion lost. The sector needs increased support to help it through the crisis.

The decision to allow pubs to open only if they sell food will devastate the industry across the country, and I have heard first-hand from pubs in Luton South about how the lockdown restrictions have damaged their business, but also about how wet-led pubs have implemented covid-secure measures to keep their customers safe, taking contact details, using table service and doing regular cleaning. I hope that the Government will publish the scientific evidence for closing the wet-led pubs, so that we can understand how the risk posed is any different from pubs that serve food or, indeed, going to the supermarket.

I fully support the Campaign for Real Ale’s call for fair treatment of all pubs, which includes publishing the scientific evidence, sector-specific support and parity between wet-led pubs and those that sell food. The Government have not learned from their mistakes, have not listened to SAGE on lockdown and have not introduced sufficient measures to protect public health or the economy.

Covid-19: Winter Plan

Rachel Hopkins Excerpts

Monday 23rd November 2020 Commons Chamber

[The Prime Minister]

My hon. Friend is absolutely right. It is a balanced approach that we will have to continue to follow through to the spring.

[Rachel Hopkins (Luton South) (Lab)]

Luton airport supports thousands of jobs and provides an income stream that funds council services and local charities. Will the Prime Minister outline what plans the Government have to introduce a fast air passenger testing regime to prevent further job losses, restore consumer confidence and ensure that the local voluntary sector survives?

[The Prime Minister]

The hon. Lady raises an excellent point, and I direct her to the answer that I gave a few minutes ago about the statement that will be made shortly by my right hon. Friend the Secretary of State for Transport.

Oral Answers to Questions

Rachel Hopkins Excerpts

Wednesday 4th November 2020 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

What recent assessment he has made of the effect of the migration to universal credit on the level of child poverty in Northern Ireland.

[Rachel Hopkins (Luton South) (Lab)]

What recent assessment he has made of the effect of the migration to universal credit on the level of child poverty in Northern Ireland.

[The Minister of State, Northern Ireland Office (Mr Robin Walker)]

The UK Government have provided unprecedented levels of support to families and employers throughout the covid crisis. We want to see a prospering economy that reduces child poverty. Welfare is a devolved matter in Northern Ireland, with no official statistical information yet available on its impact in the current year. However, the Northern Ireland Executive are committed to combating poverty via the anti-poverty and child poverty strategies, which were agreed in “New Decade, New Approach”.

[Mr Walker]

I say to the hon. Gentleman that nobody has to wait five weeks for a payment under universal credit. Advances are a mechanism for getting claimants faster access to their entitlement, allowing them to receive 13 payments over 12 months, with up to 12 months to repay the advance. Basic eligibility checks for advances are now completed remotely, allowing people to access the support they need despite covid-19 restrictions. The repayment time for advances has already been extended to 12 months, and it will be further extended to 24 months from October 2021.

[Rachel Hopkins]

The legacy of the troubles and the intergenerational trauma means that Northern Ireland has some of the highest levels of disability, mental health issues and low pay in the entire UK. This means that the £20 per week cut to universal credit planned for 2021 will hit Northern Ireland the hardest of all. Will the Minister urge his colleagues in the Department for Work and Pensions to rule it out, to stop families sliding into hardship?

Covid-19 Update

Rachel Hopkins Excerpts

Monday 2nd November 2020 Commons Chamber

[The Prime Minister]

Again, there is a budget of measures that we need to bring together to get the R down, and alas, when we start unpicking one bit, logically, a lot of the rest of it comes out. My hon. Friend’s fundamental question is the right one. I think that the people of this country want to put human life first, and they want to save as many lives as possible. That must be our overriding aim, and it is our overriding aim. We think that if we enforce these measures properly, if people self-isolate and if they are contacted in the way that they should be, we can get the R down below 1 in the way that I have described, and we can have businesses able to open up again and do Christmas business in so far as they possibly can.

[Rachel Hopkins (Luton South) (Lab)]

The Prime Minister knows that Luton suppressed the virus by increasing local testing capacity to track and isolate the virus and by the huge effort made by our diverse community to do our bit. With the virus increasing across the country, what protections will he put in place for black, Asian and minority ethnic communities, who we know are at risk and are currently disproportionately represented in ICU admissions?

[The Prime Minister]

I am grateful to the people of Luton for everything that they have done, as I am to everywhere across the country that has worked so hard to get the virus down. It is absolutely true that some people, such as black and minority groups, have proved particularly vulnerable. They need enhanced protection and enhanced testing arrangements, which we put in place long ago, and particularly to ensure that people who are working in conditions where they may be more vulnerable to viral load from others get the protection that they need.

External Private Contractors: Government Use and Employment

Rachel Hopkins Excerpts

Wednesday 21st October 2020 Westminster Hall

[Rachel Hopkins (Luton South) (Lab)]

It is an honour to serve under your chairmanship, Mr Pritchard. I thank my hon. Friend the Member for Liverpool, Wavertree (Paula Barker) for securing this really important debate. As a member of the PCS trade union, I wish to speak about the use of private firms across the justice system. Millions of pounds have been wasted on outside agencies and contractors throughout the court reform programme under Tim Parker.

The ideological obsession with the private sector goes far beyond the courts. Last month, dozens of civilian enforcement officers employed by Her Majesty’s Courts and Tribunals Service were transferred to the private sector after years of failed attempts to outsource that sensitive work. One of the two contractors, Marston Holdings Ltd, immediately put its newly transferred workers at risk of redundancy, blaming the anticipated impact of covid-19 on its workload. The courts service expressed surprise and disappointment at the move, but made no attempt to protect its staff when warned about it before the transfer. PCS insists that HMCTS is the only Government agency to transfer staff into a known redundancy situation. I wholeheartedly agree with its concerns about that behaviour. Had the courts service initiated a pre-transfer redundancy process, the affected staff would have had official union representation throughout this traumatic process. Instead, they have been left high and dry because Marston refuses to recognise PCS.

Another example of the private sector profiting from our justice system is the new generation of private prisons that are in the pipeline. At least five of the next six jails are set to be run by the private sector. Astonishingly, private prisons do not reveal how many staff they employ, and nor are their minimum staffing levels specified in contracts, yet it is widely accepted that prison understaffing leads directly to extra violence. Private prison operators, just like all corporate privateers, exist to maximise profit for shareholders, and that means slashing costs—especially staff costs—to the bone. No wonder private prisons are an average of almost 50% more violent than public prisons, according to Guardian research last year. I urge the Government to hold an independent inquiry into why private prisons are more violent than public prisons before awarding any more private prison contracts, and to ensure that minimum staffing levels and union recognition are requirements for all private prisons.

Covid-19 Update

Rachel Hopkins Excerpts

Monday 12th October 2020 Commons Chamber

[The Prime Minister]

Yes, indeed; that is why we have gone for the three-tier approach and anybody in any doubt whatever, whether or not in Carshalton—I thank my hon. Friend’s constituents for the effort that they have made—should get on to the gov.uk website and see what they need to do to comply.

[Rachel Hopkins (Luton South) (Lab)]

Many of my constituents in Luton South work for Luton airport, its supply chain and linked businesses, such as Theobolds Coaches, which I visited last Friday. While businesses in tier 3 that are forced to close will be offered some Government support, what support will be offered to those businesses in tourism and airports that are not in tier 3 but are so distinctly affected by the addition of tier 3, and are struggling due to a lack of consumer confidence?

[The Prime Minister]

The hon. Lady makes a very important point, but for some of the businesses that she talks about—aviation, for instance—we have packages. Whether through Time to Pay or through the Birch process, we are trying to look after the aviation sector, but for all businesses that are unable to trade as normal the joint support system is there.

Oral Answers to Questions

Rachel Hopkins Excerpts

Wednesday 22nd July 2020 Commons Chamber

[The Prime Minister]

That is wonderful advice, which I will take to heart. I look forward to joining my hon. Friend for a game of Poohsticks in the Hundred Acre Wood. Would it not be a wonderful thing if the Labour party abandoned the spirit of Eeyore that currently seems to envelop it?

[Rachel Hopkins (Luton South) (Lab)]

Tonight I will be supporting Luton Town FC, who are fighting for their life in the championship, as are businesses across Luton South. If Luton needs to go back into lockdown, will the Government introduce targeted financial support so that local people can afford to adhere to health guidance?

[The Prime Minister]

Yes indeed. I thank the local authorities and people of Luton, who are obviously working very hard to ensure that they contain the epidemic, as are other local authorities around the country. We are supporting them, as the hon. Lady knows, with £3.7 billion of investment, as well as £600 million for the infection fund and a further £300 million to support local track and trace. Of course, if local communities do have to go back into lockdown, we will take steps to support them as well.

Oral Answers to Questions

Rachel Hopkins Excerpts

Thursday 16th July 2020 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

What plans he has to relocate (a) civil service and (b) policymaker roles outside London.

[Rachel Hopkins (Luton South) (Lab)]

If he will make an assessment of the potential effect of reductions in civil service headcount on the ability of Government to implement its policies.

[Angela Crawley (Lanark and Hamilton East) (SNP)]

What recent discussions he has had with the Prime Minister on the Government’s plans to reform the civil service.

--- Later in debate ---

[Michael Gove]

My hon. Friend is right. I said that there were at least three possible locations for the relocation of jobs in the energy sector: Teesside, Humberside and, of course, Aberdeen. There are already civil servants in Aberdeen working in this area, but we want to ensure that more jobs are dispersed to areas at the forefront of the green energy revolution—and, of course, Cleethorpes is right at the heart of that.

[Rachel Hopkins]

On the important subject of civil service staff, what does it say about the Government’s approach to bullying that it now appears that the director of propriety and ethics, who investigated serious allegations about the conduct of the Home Secretary, is to be moved?

[Michael Gove]

I am not aware of any plans for the extremely distinguished deputy Cabinet Secretary and head of propriety and ethics to be moved. Just because the story appears in The Guardian, that does not sadly these days mean that it is true.