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Covid-19: Purchasing Effort
03 February 2022
Lead MP
Edward Argar
Debate Type
Ministerial Statement
Tags
No tags
Other Contributors: 22
At a Glance
Edward Argar raised concerns about covid-19: purchasing effort in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
Government Statement
A little over two years ago, when the world faced unprecedented circumstances due to the covid-19 pandemic, the UK government prioritised saving lives and protecting vulnerable populations. Throughout this period, efforts were made to secure personal protective equipment (PPE), including securing billions of items of PPE, 30,000 ventilators by June 2020, and over 17.5 billion items in total. Despite global market challenges and export bans, the government was able to obtain necessary supplies, even though prices inflated significantly—nitrile gloves, for instance, increased sixfold at the peak of the pandemic. The minister emphasised that while some PPE may now be deemed unsuitable due to price inflation and other factors, 97% was suitable and fit for use, and steps are being taken to recover costs from suppliers where possible. The statement concluded with an assertion that current stockpiles are sufficient to cover future demands, including the omicron variant threat, and that efforts continue to maximise value from existing stocks through redistribution and extending shelf lives.
Wes Streeting
Lab
Ilford North
Question
The Secretary of State did not come to the House today, to account for the inexcusable and unacceptable level of waste in his Department. How will he explain to voters that more than a year’s receipts of the national insurance rise are being thrown away?
Central Ayrshire
Question
How can the Minister justify spending billions on unusable PPE when millions of pounds worth of usable masks and other supplies are being thrown away? Why was there no transparency about these issues at the time?
Angela Watkinson
Con
Havering
Question
Given the significant loss in PPE procurement, how is the government ensuring that future procurements are more cost-effective and efficient? What measures are being taken to prevent similar issues?
Jim Shannon
DUP
Strangford
Question
Considering the challenges faced during the pandemic, what steps is the government taking to support healthcare workers who have been impacted by these procurement decisions?
Wes Streeting
Lab
Ilford North
Question
The Department of Health and Social Care snuck out its annual accounts on the final day on which they were legally required, and buried on page 199 was the revelation that the Department lost a staggering £8.7 billion on PPE... Why did the Department fail to collect shipments from ports on time, costing taxpayers £111 million in additional fees? Why did the Department fail to pay its bills on time and incur late fees of £1.6 million as a result? Is not it the case that when this Conservative Government thought no one was watching, they abandoned any pretence of being careful stewards of public finances?
Minister reply
It is always a pleasure to appear opposite the shadow Secretary of State... He kept suggesting—it makes a good headline for him, I am sure, but sadly I fear it is simply inaccurate—that this is money lost or wasted. It is not. As the hon. Gentleman knows from his days as a shadow Treasury Minister, this is a reflection of buying PPE at the height of the market, at the height of a global pandemic...
Question
Does my right hon. Friend agree that the revaluation of the stock simply reflects global market price fluctuations? Will he confirm that the PPE is being used?
Minister reply
My hon. Friend puts it even better than I could have done... The global market has now returned to normal levels, and that, coupled with the fact that we have helped to stimulate and build a UK manufacturing base for PPE in this country, is a simple fact of economics.
Question
Yet again, this Government are set rigid on making the working poor pay for their ineptitude and mismanagement. We know that £4.3 billion has been wasted, written off as covid loan fraud... Does the Minister believe that wasting all that money spent on PPE is a sign of good governance? Will he assure the House that his Government will pursue that with complete vigour?
Minister reply
In general, and certainly after that contribution, I will take no lessons in financial illiteracy from the SNP... The hon. Gentleman regularly, in that contribution, referred to £8.7 billion or £9 billion—rounding, if he wishes to—as wasted. He will know that, as I have set out, it is not wasted. It is a write-down on the value of stock, but it is not wasted.
Question
In reality, back at the beginning of the pandemic, the Opposition were calling for the Government to go faster... Does the excellent Minister agree that, unfortunately, the rhetoric coming from the Opposition now is completely different from what it was at the time of the pandemic?
Minister reply
I am grateful to my hon. Friend... She also said in this place: 'Those who look after the sick and the vulnerable deserve our protection, and getting PPE to them is the priority of all of us.'—[Official Report, 4 May 2020; Vol. 675, c. 412.] She was absolutely right and remains right, and that is why this Government did exactly that.
Barbara Keeley
Lab
Worsley and Eccles South
Question
Asked about the £9 billion wasted on unused PPE, highlighting alternative uses for such funds, and criticised the government's handling of Exercise Cygnus in 2016.
Minister reply
Acknowledged that £8.7 billion was spent but defended it as necessary due to unprecedented circumstances. Emphasised that lessons from Exercise Cygnus were important but not directly applicable to a new virus.
Mike Wood
Con
Kingswinford and South Staffordshire
Question
Defended the government's efforts in procuring PPE, questioning the opposition's motives for criticising.
Minister reply
Agreed with his hon. Friend that the government acted appropriately to secure necessary supplies.
Nick Smith
Lab
Blaenau Gwent and Rhymney
Question
Inquired about £600 million of PPE contracts awarded through a VIP lane to an interior design company, requesting a full investigation.
Minister reply
Responded that investigations would be conducted in cases where contractual obligations were not met or goods did not meet standards.
James Sunderland
Con
Unknown Constituency
Question
Asked the minister about the use of language regarding PPE loss, suggesting it was more an accounting write-down rather than outright loss.
Minister reply
Confirmed that most purchased PPE met standards and was usable but acknowledged a small proportion did not meet requirements.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
Question
Asked how the £8.7 billion could have been used differently, particularly for nurses' pay increases.
Minister reply
Defended PPE procurement as necessary to protect healthcare workers at inflated pandemic prices.
Jacob Young
Con
Unknown Constituency
Question
Complimented the government's vaccine taskforce efforts and welcomed the approval of Novavax vaccines.
Minister reply
Welcomed the approval of Teesside-made Novavax vaccines.
Owen Thompson
Independent Group for Change
Waveney
Question
Asked for government support in backing a Bill to prevent VIP lane contract allocations in future emergencies.
Minister reply
Pledged to review the Ministerial Interests (Emergency Powers) Bill.
Philip Hollobone
Con
Kettering
Question
Asked about the robustness of current supply and distribution chains for PPE and future manufacturing capacity.
Minister reply
Praised efforts to increase UK-based PPE production from 1% before the pandemic to over 70% now.
Clive Efford
Lab
Eltham
Question
Criticised the government's handling of Exercise Cygnus recommendations and questioned the disproportionate number of contracts awarded to Conservative associates.
Minister reply
Defended contract award process as neutral, with civil servants conducting eight-stage assessments.
Helen Morgan
Lib Dem
North Shropshire
Question
As a chartered accountant, I am aware of the concept of an accounting write down and find the £9.7 billion wasted on PPE during the pandemic shocking. This amount could have been used to address issues such as ambulance waiting times, local accident and emergency pressures, or social care funding deficits in my constituency. What are the Government doing to allocate resources to sufficiently recover that money?
Minister reply
I welcome Helen Morgan to her place and correct her figure of £9.7 billion to £8.7 billion. The PPE was not wasted but purchased for protection during a pandemic. I tabled a written ministerial statement earlier to be open about these issues. Despite the current stance, the Liberal Democrats previously called for whatever it took to get more PPE at the start of the pandemic.
Seema Malhotra
Lab Co-op
Feltham and Heston
Question
The Minister has said that we were prepared for all eventualities, but in reality, planning was insufficient. Only 97% of the PPE ordered was suitable for use, with 3% not meeting requirements. What safeguards were put in place and will he publish data on suppliers who did not refund taxpayer money?
Minister reply
We have recovered £157 million through prevention or termination of contracts involving potential fraud. More than 100 contracts are under investigation by our anti-fraud unit to reconcile disputes with contractors regarding delivery failures. We hope to update the House as we gather more information.
Question
Can the Minister confirm whether any of the promised £350 million a week from leaving the EU has been used to purchase PPE for the NHS?
Minister reply
The NHS and Department receive their annual budgets based on health and care needs. The £33.9 billion increase by 2023-24, enshrined in law, could be characterised as part of the Brexit dividend.
Jim Shannon
DUP
Strangford
Question
Will there be a full investigation into the scale and reasons for £8.7 billion losses from PPE procurement? Despite recognising the pressures at the outset, I am concerned about the potential uses of that money.
Minister reply
Our priority was getting necessary PPE to protect staff during the pandemic. We will seek to recoup any evidence of fraud or failure to deliver contracts. Of £673 million lost through goods not fit for use, we are investigating these issues and exploring options to ensure unused PPE is used where possible.
Shadow Comment
Wes Streeting
Shadow Comment
The shadow minister criticised the government's handling of PPE procurement during the pandemic, pointing out a staggering loss of £8.7 billion due to unusable or outdated equipment purchased at high prices. He accused the government of running down Britain’s supply of PPE before the pandemic and failing to act responsibly with public finances. Streeting also highlighted additional issues such as late fees for bill payments and lost shipments from ports, costing taxpayers millions. The Labour shadow emphasised that these actions demonstrate a lack of respect for both Parliament and working families who now face higher taxes due to government waste.
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