Parliamentary Debates (Hansard)
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Wednesday Volume 527 27 April 2011 No. 148 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Wednesday 27 April 2011 £5·00 © Parliamentary Copyright House of Commons 2011 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through The National Archives website at www.nationalarchives.gov.uk/information-management/our-services/parliamentary-licence-information.htm Enquiries to The National Archives, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 155 27 APRIL 2011 156 recently awarded under the Department for Work and House of Commons Pensions Work programme will go to organisations from the voluntary and charitable sector. We believe Wednesday 27 April 2011 that that will be worth in excess of £100 million a year. The House met at half-past Eleven o’clock Julian Smith (Skipton and Ripon) (Con): Will the Minister take this opportunity to name and shame those Government Departments that are doing well in PRAYERS opening up to small businesses and those that are currently doing less well? [MR SPEAKER in the Chair] Mr Maude: I certainly do not want to shame the ones that are doing well. We have found a number of examples of procurement processes that are not meeting the new Oral Answers to Questions requirements. For example, Durham police recently issued an invitation to tender for a £50,000 leadership training contract. The pre-qualification questionnaire alone was 38 pages long and contained a request for 163 separate CABINET OFFICE items of information plus a security vetting form. That is unacceptable, because it causes many smaller businesses The Minister for the Cabinet Office was asked— to lose the will to live, and they simply do not apply. Small and Medium-sized Enterprises Mark Pawsey (Rugby) (Con): I am the former owner of a small business supplying products to the public 1. Robert Halfon (Harlow) (Con): What steps he is sector. When applying to be added to a new tender list, I taking to increase access to Government contracts for was often frustrated by the amount of red tape required. small and medium-sized enterprises. [52583] Will the Minister confirm that in future fewer company policies and statements will need to be provided to 6. Julian Smith (Skipton and Ripon) (Con): What participate in the tendering process? steps he is taking to increase access to Government contracts for small and medium-sized enterprises. Mr Maude: We want to strip away all that nonsense. [52588] Under the last Government, there were 6,000 pages of guidance for some kinds of procurements. It is not 7. Mark Pawsey (Rugby) (Con): What steps he is surprising that smaller businesses just did not bother to taking to increase access to Government contracts for apply; they knew that they were going to be excluded. small and medium-sized enterprises. [52589] There were turnover requirements and requirements for a track record of doing exactly that kind of work. The 8. Amber Rudd (Hastings and Rye) (Con): What steps truth is that that is very bad for small businesses and we he is taking to increase access to Government contracts want to make things much better. for small and medium-sized enterprises. [52590] Amber Rudd (Hastings and Rye) (Con): During a The Minister for the Cabinet Office and Paymaster recent meeting, small and medium-sized enterprises in General (Mr Francis Maude): On 11 February, the Prime Hastings raised with me the difficulties not just of the Minister and I announced a package of measures, paperwork, but of getting the capital requirements in including launching our Contracts Finder website, this climate for procurement contracts with the Government. eliminating burdensome and unnecessary pre-qualification Will the Minister reassure us that that aspect will also requirements from the procurement process, and introducing be considered, as we try to make it easier for small and new ways to allow small and medium-sized enterprises medium-sized enterprises to engage with the Government? to challenge contract procedures when they operate in a way that makes life difficult for them. In addition, from the end of April, all Departments will be required to Mr Maude: My hon. Friend makes a good point. We publish a set of specific, targeted actions to increase are concerned that the working capital requirements their business with SMEs. should be proportionate and sensible and that the turnover requirements should be proportionate to the needs of Robert Halfon: Will the Minister set out what steps he the contract. All ridiculous requirements such as those is taking to increase access to public contracts for that existed under the old regime—for example, always smaller, grass-roots charities as well? Does he agree that requiring three years of audited accounts, which for the big society to work properly, we need to build automatically excluded huge numbers of new and innovative the little society too? businesses—will be swept away. Mr Maude: My hon. Friend makes the point very Mr Denis MacShane (Rotherham) (Lab): Does the well. All the measures that we are taking to enable small Minister accept the macro-problem? In south Yorkshire, and medium-sized businesses to participate more fully a large number of private sector enterprises depend in in Government contracts will, of course, apply to the whole or in part on public sector contracts. So much voluntary and charitable sector as well. Indeed, it is demand is being taken out of the economy, because of estimated that 35% to 40% of the value of the contracts the deficit reduction plans, that such businesses face 157 Oral Answers27 APRIL 2011 Oral Answers 158 serious challenges. Does he accept that small enterprises “Conservatives can win the poverty debate but not if face a real problem because of his Government’s macro- the Big Society is our message”? Is the big society more economic policy? accurately described as a label for a collection of policies rather than a policy itself? Mr Maude: I acknowledge that there is a problem—and it is one caused by the Government of whom the right Mr Speaker: I hope that the Minister will answer with hon. Gentleman was a member and supported. They particular reference to private sector applications and left Britain with the biggest budget deficit in the developed the big society bank. world. I am waiting for the right hon. Gentleman to apologise for that; that would be timely. Mr Letwin: I am grateful for that guidance, Mr Speaker. My hon. Friend is right to point out that the big Tessa Jowell (Dulwich and West Norwood) (Lab): In society is an idea with a very wide application. The big looking at an increased role for small and medium-sized society bank is a fund that will have a very wide application, businesses, will the Minister let the House know when because we believe it is extremely important that it his Department will publish the public services reform should be able to foster all sorts of voluntary and White Paper? It was commissioned last October to be community enterprise which, in one way or another, published early in the new year. January became February, enormously support the alleviation of poverty—the and the Prime Minister said that it was only two weeks subject of the article to which he refers. away. Two weeks have become more than two months and there is still no sign of the White Paper. Is that the Jon Trickett (Hemsworth) (Lab): The idea of such a Government’s biggest pause, or have they just given up bank to help to develop the centre of civil society is a on public services? good one, but effective government requires a mix of big ideas and getting the details right. In this connection, Mr Maude: I am thrilled that the right hon. Lady is has the Minister seen today’s report by the National waiting for the document with such obvious excitement, Endowment for Science, Technology and the Arts, which and I can assure her that it will be well worth waiting suggests that if the big society bank lends purely on for. This Government are committed to breaking up the commercial terms, it will be old public sector monopolies and providing diversity, “failing to support those that it is set up to support”? particularly with the growth of public service mutuals. What can he say to ensure that the lofty rhetoric of the The document will be published later this summer, and big society bank does not founder on the rock of I can promise her that she will be delighted with it. inadequate administrative detail? Big Society Bank Mr Letwin: The hon. Gentleman is of course right to say that the big society bank could not operate as it is 2. Lindsay Roy (Glenrothes) (Lab): Whether private intended to operate if it were lending, or investing, on sector organisations will be able to make applications purely commercial terms. It will have what is often to the big society bank. [52584] described as a double bottom line: it will seek to achieve the highest possible social returns alongside reasonable The Minister of State, Cabinet Office (Mr Oliver financial returns. Indeed, part of the point of the big Letwin): The big society bank will provide finance for society bank is to show that there is no conflict between the voluntary and community sector through funds to achieving high social returns and achieving modest but social lenders and investors. It will provide funds only reasonable financial returns. to bodies that are onward lending or investing in the Big Society voluntary and community sector, charities and community groups.