Covid-19: Government’s Publication of Contracts

(Urgent Question): To ask the Chancellor of the Duchy of Lancaster, if he will make a statement on the recent court order regarding the Government’s publication of contracts during the covid-19 pandemic.

Although I am not the Chancellor of the Duchy of Lancaster, I hope the hon. Lady will none the less allow me to respond to her urgent question.

The first duty of any Government in a crisis is protecting their citizens, so our work to provide personal protective equipment was a critical part of our response. It was a herculean effort that involved setting up a new logistics network from scratch and expanding our PPE supply chain from 226 NHS trusts in England to more than 58,000 different settings. Our team has been working night and day on this vital national effort, and I can update the House by saying that we have now delivered more than 8.8 billion items of PPE to those who need it. That work was taking place at a time when global demand was greater than ever before and rapid action was required, so we had to work at an unprecedented pace to get supplies to our frontline and the public.

Two weeks ago, in response to an urgent question from the hon. Lady, I updated the House on the initial High Court ruling. I will not set out that judgment at length once again, save to say that the case looked not at the awarding of the contracts, but rather at the delays in publishing the details of them as we responded to one of the greatest threats to public health that this country has ever seen. The hon. Lady’s question refers to a short declaratory judgment handed down subsequent to the original judgment in this matter, which makes a formal order as to the Government’s compliance with the relevant regulatory rules.

As before, I reiterate that we of course take the judgment of the Court very seriously and respect it. We have always been clear that transparency is vital, and the Court itself has found that there was no deliberate policy to delay publication. The fight against covid-19 is ongoing. As would be expected, we are agreeing new contracts as part of that fight all the time, and we will keep publishing details of them as we move forward.

I care passionately about transparency, and so does everyone in my Department. We will of course continue to look at how we can improve our response while we tackle one of the greatest threats to our public health that this nation has ever seen.

This question and the answers to it really matter because our frontline workers were not adequately protected with the high-quality PPE that they needed during the pandemic. They matter because it is essential that taxpayers’ money is spent effectively and fairly, not handed out to those who happen to have close links with the party of government.

The Government ran down the PPE stockpile ahead of the pandemic, and that came back to haunt us when we needed it most. Contracts were handed out—many to friends of and donors linked to the Conservative party —without any transparency. The Good Law Project took the Government to court, and on 19 February the High Court ruled that the Government had acted unlawfully, saying:

“The public were entitled to see who this money was going to, what it was being spent on and how the…contracts were awarded.”

Three days later, in this House, the Prime Minister said that

“the contracts are there on the record for everybody to see.”—[Official Report, 22 February 2021; Vol. 689, c. 638.]

But they are not. A judge confirmed through a court order last Friday that 100 contracts are still to be published. Will the Minister now take this opportunity to apologise for that statement and to put the record straight? Will the Government now finally agree to publish all 100 outstanding contracts by the end of this week?

For contracts that have failed, will the Minister tell us how much money has been and will be clawed back for taxpayers? Can he tell us which businesses were in the VIP fast lane for getting Government contracts and how they got there? Finally, can he honestly tell our brilliant NHS nurses, now facing a pay cut, that the Government have not wasted a single penny of their money on this curious incident of the missing contracts?

It is a pleasure to be opposite the hon. Lady once again at the Dispatch Box—two weeks after we were last here. I will do my best to answer the questions she raised, not just for my own Department, but more broadly across Government.

The hon. Lady raised a number of points. She is absolutely right to say that transparency matters, because transparency of procurement and transparency in Government is one of the foundations of the trust that is so vital to our democracy. That is why we are working flat out to ensure that, as new contracts are awarded, the contract award notices and other relevant pieces of information are published in line with the requirements of regulations.

What is most important, though, is to recognise the situation that we faced last year, with rising infection rates, rising hospitalisation rates and the need to do everything we could—to “strain every sinew”, to quote one of the hon. Lady’s letters to the Chancellor of the Duchy of Lancaster at the time—to make sure we got those working flat out on the frontline what they needed to keep them safe. I pay tribute to the officials in my Department, who did exactly that: they focused on getting what was needed in bulk in an incredibly challenging global market, to make sure that PPE did not run out.

The hon. Lady quite rightly quoted the judgment, and I will quote paragraph 149 of the judgment—the original judgment, not the supplementary judgment. The judge, Mr Justice Chamberlain, stated that

“the overall picture shows the Secretary of State moving close to complete compliance. The evidence as a whole suggests that the backlog arose largely in the first few months of the pandemic and that officials began to bear down on it during the autumn of 2020.”

I think that recognises the efforts that have been put in place to ensure that we meet our transparency requirements. One hundred per cent. of the Department’s CANs—contract award notices—have been published.

As the co-chair of the all-party parliamentary group on anti-corruption and responsible tax, I think that the Government’s following robust procurement measures is absolutely critical, but clearly a year ago we were not in normal circumstances; most reasonable people would accept that desperate times called for desperate measures. Will the Minister confirm that the Government are now following all normal, standard procurement processes? Will he confirm what percentage of the contracts from a year ago have been fully published and when the remainder will be published?

My hon. Friend highlights the situation we faced at the time. He also, quite rightly, highlights the importance of transparency and complying with all transparency processes. The Government invoked regulation 32, which recognised the exceptional circumstances that allowed for procurement without the usual tendering process. I believe that the usual tendering process could take, at a minimum, 25 days. My hon. Friend recalls the situation at the time. The Government did what we felt was right to ensure that we got the PPE that our frontline needed. The court case also found that there was no policy to deprioritise compliance with transparency regulations. I give him the assurance he seeks: the Government are doing everything possible to ensure that we fully comply with those regulations going forward.

Some 94% of contracts awarded before 7 October were, unlawfully, not published in time and, as of late last week, 100 are still not published. Some 58% were awarded without a competitive tendering process. There are conflicts of interest, inadequate documentation, a high-priority crony lane and then the Prime Minister announcing that all of the contracts were,

“on the record for everybody to see.”—[Official Report, 22 February 2021; Vol. 689, c. 631.]

When he said that, it was simply not correct. Is the Minister not concerned that this failure in transparency, the potential conflicts of interest and a Prime Minister who does not even appear to know what is going on, simply feed a perception of a Government doing profitable deals with friends and cronies, rather than delivering meaningful transparency that will drive value for money for the taxpayer?

The right hon. Gentleman highlights quite accurately the 94%, which was cited in the subsequent judgment and the order that flowed from it, of the contracts that were late in publication. We accept that that is a statement of fact. The Department has published 100% of the CANs that it is obliged to publish that are related to this matter. He talked about a percentage that were procured without following a normal competitive tendering process—I think he referred to 58% as the percentage that were procured. That is entirely appropriate under regulation 32, recognising the situation we faced at the time and the priority of this Government to make sure that, at pace, we got the PPE that our frontline needed to keep it safe.

On his final two points, I do not see in the judgments in this case or in any of the other scrutiny of this issue by Committees of this House or other organisations anything that asserts or finds that inappropriate conflicts of interest influenced how these contracts were awarded. I am proud to serve in a Government led by a Prime Minister who leads from the front and has done whatever is necessary to make sure this country gets through this pandemic.

This time last year, there was a desperate need to secure PPE urgently when, almost overnight, it became one of the most hotly sought-after commodities globally. I congratulate the Department on its Herculean efforts to keep my residents safe and get them the PPE they needed when the shortage hit. Of course, delays to publication are not ideal, and I am glad that the Department is urgently trying to resolve that. Does my hon. Friend agree that, as part of the review into the pandemic, we need to look at how procurement procedures can be improved when responding to a national crisis or, indeed, future pandemics?

I pay tribute to my hon. Friend for his work on this issue; he is a strong and vocal champion for the NHS and those who work in it. The context he sets is absolutely right. I will quote from the summary of the NAO report without making a value judgment on it. It highlighted in paragraph 2:

“Demand for PPE rocketed in England from March…There was also a surge in demand in other countries. At the same time, the global supply of PPE declined as a result of a fall in exports from China (the country that manufactures the most PPE) in February.”

That is a statement of fact, and it highlights the context in which we were operating.

My hon. Friend is right: all Governments should rightly look at what they have done and what lessons they can learn, to ensure that they are well prepared for future events.

On 22 February, the Prime Minister answered my question about unpublished covid contracts by claiming:

“As for the contracts…all the details are on the record.”—[Official Report, 22 February 2021; Vol. 689, c. 634.]

Two days later, when the Minister was dragged to the Chamber, he did not tell us about the 100 contracts that were still not on the record. We had to wait for the High Court to reveal that last Friday. Are we expected to believe that the Prime Minister had not sought any briefing after the High Court found that his Secretary of State had acted unlawfully? If he sought no facts, why did he give such a categorical yet wildly inaccurate reply, and why was that inaccurate reply not corrected two days later by the Minister?

At the point in time to which the hon. Lady is referring—22 February, when she asked the Prime Minister her question—I understand that we had published 100% of our contract award notices for contracts of the Department that were subject to the Court case, and I believe the Prime Minister spoke accurately.

Notwithstanding the answer that the Minister gave my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer), does he agree with my constituents and me that, during a national emergency, the British people want a Government who focus resources on saving lives over prioritising red tape?

I am grateful to my hon. Friend for the point he makes on behalf of his constituents. The overwhelming priority was to ensure that we got the PPE in the quantities we needed to our frontline, and we procured that in an incredibly challenging environment. I pay tribute to all the officials who worked flat out to do that. The Court judgment found that there was no policy of deprioritisation of meeting transparency requirements, but it also found as a matter of fact, which is clear in the judgment, that that bar was not met. That is something we have worked very hard on subsequently and continue to do so, to ensure that transparency requirements are met.

It feels a bit like groundhog day. Once again, the Chancellor of the Duchy of Lancaster, who has overall responsibility for procurement, is missing in action, and the Health Minister has come to the House to talk about how breathlessly urgent it all was at the beginning of the pandemic—I do not disagree with that, but it is not an excuse for not publishing these contracts in time. With contracts worth more than £10 billion awarded without tendering action between the beginning of the pandemic and July, seeing that paperwork urgently is more important, not less. If the paperwork is still not being published in time—and this goes back to the problems we discussed two weeks ago—can the Minister not just apologise and give a firm commitment that from now on, every contract will be published in time? It is either insouciance or incompetence that they were not published in the first place.

I have known the hon. Lady since I came to this House, so I will not take it personally if she suggests that, as I am not the Chancellor of the Duchy of Lancaster, the import of my answers is in some way diminished. I will endeavour to answer her specific questions. As I made clear, we have published 100% of the CANs that give the information on the contracts awarded—in the context of this case, the contracts awarded by the Department of Health and Social Care.

However, the hon. Lady asked a very fair question at the end about the future, and I can give her the reassurance that this Department is doing everything possible to ensure that it meets those transparency requirements. Officials are aware of them and officials are reminded of them. I recognise the vital importance of transparency, not least for building trust, which she mentioned last time in her question, but also in allowing her, the NAO and other Members of this House to do their job, quite rightly, in scrutinising and challenging those contracts and Government decisions, where appropriate.

I am quite sure that Ministers want these contracts published, and I look forward to the remaining publications. Will the Minister confirm that in the emergency phase, when it was just desperate to get hold of PPE, all those contracts were negotiated and vetted by independent professional civil servants, and it was not a case of friends of Ministers?