Commons Sense

House of Commons · Ministers' Questions

Sanctions Regimes for Public Procurement: Suppliers

Thursday 16 March 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 2 Not answered 0

Key points

  • UK and international partners are implementing sanctions against Russia, including freezing over 18 billion in assets.
  • Government aims to ensure small and medium-sized enterprises (SMEs) receive a fairer share of government procurement funds through the Procurement Bill.
  • Infosys was awarded a 1.7 million contract despite being linked to Russia, and the Minister referred to policy procurement note 01/22 requiring checks on suppliers' origins.

Topics (select to filter)

Questions & Answers

Q1 Liz Twist Lab Blaydon and Consett
Foreign Affairs Business Compliance
Context

The UK has implemented severe sanctions against Russia, including the freezing of over £18 billion worth of assets. This raises concerns about suppliers complying with these regimes for public procurement.

Question

What steps he is taking with Cabinet colleagues to ensure suppliers follow the UK's sanctions regimes for public procurement?

Answer from Jeremy Quin

The UK and its international partners stand shoulder to shoulder in implementing sanctions against malignant actors on the international stage. This includes the most severe sanctions ever against Russia, which represents over £18 billion in assets frozen and reported to the Office of Financial Sanctions Implementation. Contracting authorities must comply with our sanctions, which have legal force.

Answered
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Q2 Liz Twist Lab Blaydon and Consett
Business & Trade
Context

The British Chamber of Commerce reported that small and medium-sized enterprises (SMEs) received a relatively small amount of direct government procurement money in 2021 compared with five years ago.

Question

On the question of procurement more widely, the British Chamber of Commerce found that, in 2021, small and medium-sized enterprises were receiving a relatively small amount of direct Government procurement money compared with five years ago. Can the Minister explain why SMEs are being increasingly sidelined from access to public procurement under his Government?

Answer from Jeremy Quin

Far from sidelining SMEs, the Government are absolutely focused on ensuring that they get a fairer share of the Government procurement pie. I am delighted that the Procurement Bill will put an obligation on contracting authorities to have regard to what their tenders will do for SMEs. That will ensure that, right at the early stages of the process, as well as displaying a long pipeline notice, contracting authorities think through how they can make certain that those tenders are best adaptable to SMEs and their requirements.

Partly answered

Not addressed: The specific reduction in access for SMEs was not addressed directly, only general statements about improving future procurement practices were given.

How: Focused On Future Improvements

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Q3 Florence Eshalomi Labour (Co-op) Vauxhall and Camberwell Green
Foreign Affairs
Context

It was revealed that Infosys, a company with a substantial UK presence, continued operations in Russia after announcing its withdrawal. This company later received a public procurement contract worth £1.7 million.

Question

In November, it was revealed in The Guardian that the company Infosys was still operating in Russia, eight months after it announced that it would withdraw. Just a month later, that company was awarded a lucrative contract worth £1.7 million of taxpayers' money. Was the Minister aware of that when that contract was awarded, and do the Government believe that public money should be going to those who are operating in Russia?

Answer from Jeremy Quin

We set out in policy procurement note 01/22 our approach to public procurement and links with Russia. That PPN speaks for itself, and I am sure the hon. Lady is familiar with it. It requires contracting authorities to check from whom they are receiving goods and services. It is primarily aimed at those who are Russia or Belarus-based, or who have significant control. I do not know the particulars of the circumstances that she mentions, but the Government's approach through PPN 01/22 is very clear.

Partly answered

Not addressed: The minister did not address whether they were aware of Infosys' operations in Russia at the time of contract award or if it was appropriate to give public money to such companies.

How: Referenced Existing Policy Without Addressing Specific Incident

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