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Covid Contracts: Judicial Review
24 February 2021
Lead MP
Edward Argar
Debate Type
Ministerial Statement
Tags
NHSTaxationBusiness & TradeStandards & Ethics
Other Contributors: 39
At a Glance
Edward Argar raised concerns about covid contracts: judicial review 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
Protecting those who protect us has been a key focus of the Government. The PPE supply chain expanded significantly, from supplying 226 NHS trusts to over 58,000 settings. Over 8.6 billion items have been delivered so far, with billions more on order. Despite facing unprecedented global demand and working under immense pressure, efforts were made to secure vital supplies for the NHS and public safety. The High Court ruled that contract award notices weren't published in the required timeframes due to the workload during the pandemic crisis, but found no deprioritisation policy was in place. The Government respects the court's judgment while maintaining transparency and implementing Public Accounts Committee recommendations.
Rachel Reeves
Lab
Leeds West and Pudsey
Question
A stain has emerged on this Government’s response to the crisis. £2 billion-worth of contracts have been handed to those with close links to the Conservative party, breaching regulations. What was the cost to taxpayers of fighting this case? Will the Government agree to publish names of all businesses in their VIP fast lane and say how they got on that list?
Minister reply
The judgment focused solely on timely publication of contract notices and found no impropriety or inappropriate behaviour, as confirmed by the National Audit Office. No national shortage of PPE occurred during the pandemic due to the Government’s efforts. The current situation regarding compliance and costs will be published shortly after information is provided to the judge.
Question
How much of the supply of PPE now comes from this country, rather than abroad? If given a choice between getting more ventilators and PPE or ensuring regulation timescales are met, what would have been chosen?
Minister reply
At the start of the pandemic, 1% of PPE was produced in this country. Now up to 70% is supplied domestically due to efforts by businesses, individuals, civil servants, and officials. Transparency is important, but saving lives during the pandemic took priority.
Stewart Hosie
SNP
Dundee East
Question
I am glad the Minister mentioned transparency, because of the £15 billion PPE contracts awarded up until last October, barely £3 billion were properly published. He highlighted cases where money was given to a finance company, confectionery supplier and pest control company—a catalogue of cronyism described as a failure by experts in the field. When did the Minister for the Cabinet Office and the Prime Minister first know that not publishing details might be unlawful?
Minister reply
I am grateful to Stewart Hosie for his question but avoid straying into matters before the courts due to separate litigation. The latest figures show 100% contract award notices published, and we are up to 99% under regulation 108. Ministers in my Department followed the process closely.
William Wragg
Con
Crewe and Nantwich
Question
I welcome my hon. Friend to the Dispatch Box. Most fair-minded people would give the Government the benefit of the doubt as the judgment found against a secret deprioritisation policy to deliberately breach procurement rules. Can my hon. Friend provide more detail on domestic PPE production in this country so we have security of supply?
Minister reply
My hon. Friend is right that officials prioritised getting PPE for frontline workers and there was no policy to deprioritise the publication of contract notices and data as highlighted by Justice Chamberlain. We moved from 1% domestically produced PPE to 70%, with over 8.6 billion items supplied.
Sarah Owen
Lab
Luton North
Question
While nurses wore bin bags instead of proper PPE, contracts were handed out to Ministers’ mates. Will the Minister do the right thing and reveal the 29 businesses Serco outsourced operations to?
Minister reply
We have been clear that there are no suggestions of inappropriate behaviour from any Ministers in awarding these contracts; this was not found by the judge. The Department is publishing contracts as required, with the Secretary of State being close to complete compliance.
Wirral West
Question
At the height of the pandemic last year, offers of help from businesses were fed into the Department. Can the Minister confirm how many items of PPE have been delivered through these contracts?
Minister reply
Since the start of the pandemic, we have secured contracts delivering 8.6 billion items of PPE and more than three times that number are on order to ensure robust supply for frontline workers.
Caroline Lucas
Green
Brighton Pavilion
Question
The Health Secretary and the Prime Minister claimed all information relating to PPE contracts is published online. Where can details of the VIP lane be found, including who was paid and who introduced them? Will the Government apologise for comments made that there wasn’t a shortage of PPE?
Minister reply
We are at 100% compliance on contract award notices; Prime Minister’s reference is to publication obligations. While we did not run out nationally, distribution challenges were acknowledged. The NAO report highlighted no national shortage but significant local challenges in some hospitals.
Aaron Bell
Con
Worcester
Question
From the judgment that MPs who sought to join this case did not have standing and may leave the public with an impression of trying to advance a political cause, does my hon. Friend agree such practices are damaging to democracy when technical judgments are misrepresented?
Minister reply
I highlight my former Justice Minister background but echo his point about using courts for legal issues rather than making political points.
Clapham and Brixton Hill
Question
The scandal surrounding covid contracts has not just been about the lack of transparency, but about the poor performance of these companies: £350 million to PestFix for PPE that did not meet the required standards; another £347 million to Randox, which had failed on its original £133 million contract by distributing test kits that were not sterile; and, of course, the millions to Serco and others that failed with the track and trace system. Does the Minister agree that all public sector contractors should be held to the highest standard, no matter who their friends are, and will he outline what plans the Government have to hold such contractors to account and recoup millions of pounds of public money, or will he uphold these standards depending on whether the contractors have links with the Conservative party?
Minister reply
On the hon. Lady’s first point, a number of specific cases relating to specific contracts remain before the courts, so if I may I will address her broader point about pursuing the appropriateness of the contractors—whether they could deliver—where they failed to deliver to the appropriate standards, and what steps the Government will take. All contracts were assessed against the eight criteria for appropriateness, including due diligence, safety standards, and whether they meet the specifications and so on. If any contractor did not deliver against that, we will either refuse to pay or we will be seeking to recoup that money, and a number of investigations are already under way to fulfil that commitment.
Question
The British people want us to keep on fighting this virus, protecting our NHS as we roll out the vaccine and saving lives. Does my hon. Friend agree that sniping from the side lines, as the Labour party is doing, is the opposite of what the people of Stoke-on-Trent North, Kidsgrove and Talke want to see right now in these unprecedented times?
Minister reply
I recognise that all Members of this House and all members of the public in our constituencies want transparency, and quite rightly so, but what is most important to them in the midst of this pandemic and as we emerge from it, is to know that this Government and those who work for them have done everything they can to ensure that we procured the PPE that was necessary, when it was necessary, to protect the frontline and help save lives.
Layla Moran
Lib Dem
Oxford West and Abingdon
Question
Whether I have standing or not, I am proud to have helped bring this case, alongside the hon. Members for Brighton, Pavilion (Caroline Lucas) and for Oldham East and Saddleworth (Debbie Abrahams). We did it because we could not get the information through the normal channels in this place. It is also worth noting that, rather than simply admit the breach and then promptly publish all contracts at the beginning of the process, the Secretary of State for Health and Social Care chose to push the case to court and then, when he lost, said that he would break the law again. At the heart of the case was always transparency and fairness. Many established businesses felt frozen out because they happened to not be chums with a parliamentarian or a Minister, so my question is this: can the Minister not see how this looks, and can he also not see how delays in publishing these contracts in good time further undermine trust in Government, at a time when trust, as much as PPE, is necessary for saving lives?
Minister reply
Although I made the legal point about lack of standing, I hope that the hon. Lady heard me highlight and acknowledge the fact that she and two other hon. Members clearly have an interest in this, and that she has long-standing interest in this issue and this case. She is right to highlight trust; I think what is central to the trust of the British public is the Government doing everything they can to deliver for our frontline workers the protection they needed to make sure they could keep protecting us safely.
Question
Many excellent companies in the Calder Valley that would not normally bid for Government contracts have stood up for the national effort, and have been making PPE for the national cause even when this is not their core business. This has secured jobs, secured business, and ensured our NHS has had the PPE when it needed it. Can my hon. Friend confirm that all these, and other, Government contracts were awarded in a fair, open and transparent way, following due process, and that this Government have remained committed to publishing them as quickly as possible, even under the pressures of the pandemic?
Minister reply
I am grateful to my hon. Friend, and like him, I pay tribute to all those businesses and individuals who stepped up in this country’s moment of need, and were willing to put themselves forward and repurpose their factories to try to find ways to help that the national effort. All the contracts have been found so far to be awarded entirely appropriately; there has been no adverse judgment in respect of any of that.
Question
Can the Minister tell me whether it is coincidence, incompetence, or just rank stupidity that his Government and Health Secretary awarded a £30 million contract for testing vials to the Health Secretary’s former neighbour, a former pub landlord who had no experience in this field and is now being investigated by the Medicines and Healthcare Products Regulatory Agency? Surely, the Minister agrees that these breaches mean the Health Secretary must resign.
Minister reply
The hon. Lady will not be surprised to know that I completely and utterly disagree with her. I think my right hon. Friend has done, and continues to do, an extraordinary job under extraordinary pressure to help this country through this pandemic over the past year.
Question
The judge very clearly found that there was a breach in relation to one matter: the 17-day average delay. He rejected the suggestion that there was a systematic failure. He rejected the suggestion that there is any impropriety in the system for awarding the contracts and did not impugn any of the contracts themselves or the process by which they were awarded. Most lawyers would know that this was a technical breach, as it has been described, albeit a breach. Is not the real moral of this that when those of us in politics seek to comment upon judgments, it is a good idea to actually read the judgment first and understand the law on which it is based, rather than grandstanding inaccurately, as has too often been the case here?
Minister reply
I am grateful to my hon. Friend for his comments. He is absolutely right to highlight what this judgment actually said. It found, in what had to be a binary judgment—either it was complied with or it was not—that the Government failed to comply with the 30-day publication timing for all contracts.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Question
The Government’s infatuation with private sector delivery of pandemic public services has led them to ignore basic procurement best practice, replacing value for money with cronyism and due diligence with pub pals. Will the Government commit, as Labour has done, to a programme of insourcing and start by handing over the failing Serco test and trace to the public sector, which has made such a success of the vaccine delivery?
Minister reply
On the hon. Lady’s main point about private and public and, I would add, voluntary sector organisations, every one of those has stepped up and made a hugely important contribution to our country’s response to this pandemic. I wish to pay tribute to public sector organisations.
Question
At the height of the pandemic, the contracts we signed allowed us to stand side by side with the private sector, procuring enormous volumes of goods and expertise with extreme urgency. Does my hon. Friend agree that without these vital contracts, our covid response would have suffered as a result?
Minister reply
I agree entirely. Some of the narrative around this reminds me slightly of my days back at school and “Animal Farm”—“Four legs good, two legs bad.” The reality is that both private sector and public sector have played an incredible role in tackling this pandemic, for which we should be extremely grateful.
Debbie Abrahams
Lab
Oldham East and Saddleworth
Question
The hon. Lady questioned the Government's claim that there were no shortages of PPE, referencing Exercise Cygnus in 2016 as well as reports from constituents working in the NHS. She also pointed out that despite the Government’s commitment to transparency, there are still £4 billion-worth of contracts since November 2020 where the details remain unpublished.
Minister reply
The Minister responded by acknowledging local shortages and challenges but stressed that nationally PPE supplies did not run out. He explained that Exercise Cygnus was specific to influenza and not applicable to a novel pandemic like COVID-19. On transparency, he reaffirmed the Government's commitment to publishing all contracts as required.
Question
My hon. Friend enquired whether protecting frontline health workers should always come first and if that should not be an either/or situation with procurement rules.
Minister reply
The Minister agreed, emphasising the critical role of civil servants in procuring PPE at pace during the pandemic's early stages.
Question
The hon. Gentleman asked about the Government’s efforts to recoup public money from contractors who have failed to meet their obligations and how much has been regained so far.
Minister reply
The Minister committed to updating the House on the progress of investigations into the recouping of misspent public money.
Question
My hon. Friend clarified that illegal acts contravene the law whereas unlawful acts contravene rules, and questioned whether the Government had overcome a technical breach highlighted by the Justice Committee.
Minister reply
The Minister confirmed that while the judgment stated the government acted unlawfully, they are now almost at complete compliance with regulations.
Liz Twist
Lab
Blaydon and Consett
Question
The hon. Lady questioned whether all contracts missed for PPE publication deadlines also include those going to management consultants, and why these were not published on time.
Minister reply
The Minister stated that his understanding is that this data relates to all contracts by the Department, and he would correct the record if inaccurate.
Question
My hon. Friend confirmed whether Government contracts are awarded fairly following due process and expressed hope that the public focuses on pandemic issues rather than political point scoring.
Minister reply
The Minister agreed, emphasising the Government's commitment to transparency and the efforts of civil servants in securing vital PPE supplies.
Question
The hon. Gentleman proposed backing a Bill for parliamentary scrutiny to ensure no suggestion of corruption during emergency responses.
Minister reply
The Minister rebutted any suggestion of corruption, noting that Members have the ability to ask questions and that the Public Accounts Committee has oversight.
Question
My hon. Friend questioned if the findings from the National Audit Office show no health trust ran out of supplies at any point due to contracts secured by the Government.
Minister reply
The Minister agreed, stating that every step was taken to ensure trusts had PPE they needed and cited NAO reports supporting this.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
Question
The MP highlights a discrepancy in the National Audit Office's report regarding PPE shortages, criticising the minister for partial briefing. She also calls for more transparency regarding contracts as billions of pounds were spent during the pandemic.
Minister reply
The Minister acknowledges the point about frontline workers experiencing shortages but clarifies that these were not national issues and emphasises his department’s efforts to ensure trusts received necessary PPE in a timely manner. He commits to ensuring adherence to regulation 50 for transparency going forward.
Question
The MP questions whether the opposition's political sniping is counterproductive during a pandemic and suggests that constituents want politicians to focus on fighting the virus.
Minister reply
The Minister agrees that it is important for all parties to work together in this crisis, ensuring that frontline workers receive what they need.
Peter Kyle
Lab
Hove and Portslade
Question
The MP raises concerns about nepotism and corruption in the awarding of contracts, suggesting a lack of transparency and due process.
Minister reply
The Minister asserts that all contracts were assessed through an eight-stage civil service process, ensuring due diligence and appropriateness without ministerial involvement.
Hayes and Harlington
Question
The MP asks about the data contract with Palantir, questioning its links to extremist groups and whether a data protection impact assessment was conducted.
Minister reply
The Minister confirms that NHS service user data is protected by the Government without commenting on specific accusations made.
Bob Blackman
Con
Harrow East
Question
The MP highlights the near-overwhelm of Northwick Park Hospital due to lack of PPE and questions what would have happened if the Government had engaged in competitive tendering.
Minister reply
The Minister explains that running a tender process could take around one month, emphasising the need for rapid procurement during the pandemic's first wave.
Ruth Jones
Lab
Newport West and Islwyn
Question
The MP expresses horror at media reports and court judgments, questioning whether Ministers will respect these rulings and stop reckless behaviour.
Minister reply
The Minister reiterates his commitment to respecting the courts while emphasising the need for rapid PPE procurement during the pandemic.
Question
The MP questions the awarding of a £313 million contract to PestFix, suggesting it undermines trust in the Government's processes.
Minister reply
The Minister focuses on the civil servants and officials who worked tirelessly to secure PPE during the pandemic’s critical period.
David Simmonds
Con
Ruislip, Northwood and Pinner
Question
The MP thanks the minister for ensuring timely delivery of PPE and criticises opposition attempts to undermine this success.
Minister reply
The Minister acknowledges the swift procurement and delivery of essential equipment during the pandemic’s first wave.
Wendy Chamberlain
Lib Dem
North East Fife
Question
The MP inquires about adherence to Nolan principles given civil servants' delays in publication at the behest of No. 10.
Minister reply
The Minister references Judge Mr Justice Chamberlain's findings, stating there was no evidence of a policy to deprioritise transparency requirements.
Marco Longhi
Con
Dudley North
Question
My Dudley North constituents, like me, can see right through this urgent question for its petty political intent. For the avoidance of doubt, will my hon. Friend confirm how many people came to harm because this paperwork was two weeks late, compared with the harm that would have arisen from PPE and medical equipment being received two weeks late?
Minister reply
Transparency is important. The Chair of the Public Accounts Committee and others have rightly made that point, but saving lives is important and, I would argue, in the height of the pandemic, more important. It was right that civil servants and others focused entirely on that purpose of getting the PPE to reduce the risk of loss of life, and as the judge acknowledged, they have worked very hard subsequently to catch up with the transparency requirements to ensure that the information is published and is available for interrogation.
Matt Western
Lab
Warwick and Leamington
Question
When it comes to Government contracts, someone is 10 times more likely to get one if they have a Government contact. The protocols are clear, as the Supreme Court confirmed, and the Health Secretary acted unlawfully in not revealing the details of contracts with his pub landlord, a hedge fund in Mauritius or the jeweller in Florida. For our frontline health workers, there was just not enough FFP3. Ministers’ mates and their suppliers in China have been favoured in supplying PPE over UK companies such as Tecman and Contechs.
Minister reply
I am grateful to the hon. Gentleman for his initial analogy. He made a couple of points there. I believe—this is from memory, so forgive me if I am slightly out, and I will correct the record if I am—that around 90% of those bids that came through the high-priority lane were rejected. They were carefully assessed by civil servants against the eight stages of the procurement process set up to ensure that due diligence was followed. The hon. Gentleman raised a very specific point, which I want to address, because he talked in his question not just about NHS trusts, but quite rightly about those working on the frontline in social care settings and the PPE they needed.
Question
I commend the Government for their efforts to do whatever it took to protect the frontline during the height of the pandemic. Will the Minister join me in extending our thanks to the amazing NHS workforce and the armed forces personnel working at James Cook University Hospital and Redcar Primary Care Hospital, as well as our teams in primary care?
Minister reply
I am very happy to join my hon. Friend in doing that. I suspect that, in what has been a contentious urgent question, that is a point on which there will be consensus between me and the shadow Minister. We pay tribute to those working on the frontline of our NHS and social care, and those helping with the vaccination programme.
Jim Shannon
DUP
Strangford
Question
Does the Minister share my view that, although transparency is important, saving lives is even more important, and that the public servants who have done much to secure the vital supplies of protective equipment that we need deserve our praise, not criticism? Will he clarify that the information required by the judicial review judgment will be revealed in a timely manner?
Minister reply
I am grateful to the hon. Gentleman, who is absolutely right to pay tribute to the officials and those who were working flat out at the height of the pandemic, often through the night and at weekends. Even when working from home, they did not see much of their families because they were working incredibly hard to procure the PPE we needed to keep people safe. I pay tribute to them. On the hon. Gentleman’s final point, my understanding is that the additional information required by the judgment must be supplied to the court by Friday, and I expect that the judge will make that public.
Mike Wood
Con
Kingswinford and South Staffordshire
Question
Speed is vital during a public health emergency, but transparency remains important. What assurances can my hon. Friend give us that, although paperwork can never come before delivering essential medical equipment and services to the frontline, the Government are committed to publishing contracts in a timely manner?
Minister reply
I thank my hon. Friend. He is absolutely right. Getting PPE to the frontline, procuring what we needed and getting it delivered was the absolute priority. As I have expressed throughout my remarks, I recognise that transparency is hugely important, and we will supply the court with the further information it needs. As the judge said, we are now virtually in complete compliance, and we will continue to work hard to ensure we comply with the requirements under regulation 50 and the other requirements of the Public Contracts Regulations 2015.
Shadow Comment
Rachel Reeves
Shadow Comment
The Labour Party criticises the Government for awarding contracts to those with links to the Conservative party, costing taxpayers money. The Government has been taken to court over their response during the pandemic. Questions raised include: cost of fighting the case, publishing VIP fast lane names and overdue contracts, locating missing PPE funds, using clawback for failed contracts, apologising for inadequate PPE supply, and revealing why Serco Test and Trace was chosen.
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