Wednesday Volume 641 16 May 2018 No. 140 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Wednesday 16 May 2018 © Parliamentary Copyright House of Commons 2018 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 257 16 MAY 2018 258 Priti Patel: The UK’s fantastic small and medium-sized House of Commons enterprises drive innovation and help to deliver our public services. What barriers has the Minister identified Wednesday 16 May 2018 that he will tackle to ensure that we can see more small businesses from around the country tender for Government contracts? The House met at half-past Eleven o’clock Oliver Dowden: I thank my right hon. Friend for her question. She is absolutely right: I am committed to PRAYERS breaking down barriers for SMEs supplying the public sector. That is why, over Easter, I announced that we [MR SPEAKER in the Chair] required significant contractors to advertise their contracting opportunities for SMEs on Contracts Finder. In addition, my right hon. Friend the Prime Minister has appointed an SME champion in each Department, and I have Oral Answers to Questions personally written to strategic suppliers to remind them of their obligation to pay subcontractors on time. Craig Mackinlay: A report that I published in conjunction CABINET OFFICE with the TaxPayers Alliance earlier this year found that some public sector organisations are spending up to seven times more for a ream of photocopier paper than The Chancellor of the Duchy of Lancaster and Minister others. What steps is my hon. Friend taking to ensure for the Cabinet Office was asked— that the public sector spends taxpayers’ money more Government Procurement: Small Businesses wisely in everything that they incur and spend, and will he undertake to read my report? 1. Mark Pawsey (Rugby) (Con): What steps his Oliver Dowden: I will, of course, undertake to read Department is taking to support the use of small businesses my hon. Friend’s report and will respond directly. It is in Government procurement. [905315] precisely for this reason of getting good value for the taxpayer that we established the Crown Commercial 3. Priti Patel (Witham) (Con): What steps his Department Service to increase savings for the taxpayer by centralising is taking to enable a wider range of businesses to bid for buying requirements for common goods and services and secure public sector contracts. [905317] such as photocopier paper. 11. Craig Mackinlay (South Thanet) (Con): What Emma Hardy (Kingston upon Hull West and Hessle) steps his Department is taking to support the use of (Lab): FCC Environment has public sector contracts small businesses in Government procurement. [905327] across 160 constituencies, yet it refuses to pay its workers sick pay. The workers in Hull have been out on strike for The Parliamentary Secretary, Cabinet Office (Oliver more than 30 days after one of their colleagues developed Dowden): Small businesses are the engine of our economy, cancer and had to return to work after a month because and we are determined to level the playing field so that he could not afford to be off work. Will the Minister they can win their fair share of Government contracts. please look at reforming the rules for procurement so That is why, last month, I announced a range of new that no companies can exploit workers in this way and measures, including consulting on excluding bids for not pay them the basic right of sick pay? major contracts from suppliers who fail to pay their subcontractors on time and giving subcontractors greater Oliver Dowden: Clearly, all suppliers are subject to access to buying authorities to report poor payment the general law of the land, which covers many of those performance. points. In addition, we have introduced a supplier code of conduct, which looks exactly at those corporate Mark Pawsey: I thank the Minister for his answer, responsibility points, and we review it continuously, and but I recently met small businesses at the Rugby branch we will review it with such cases in mind. of Coventry and Warwickshire chamber of commerce, many of whom told me that they were put off from John Spellar (Warley) (Lab): Today’s Carillion report tendering for public sector contracts by the complexity clearly demonstrates the urgent need to deal with the of the process. I know that Ministers have worked hard late payment culture in the construction industry, which to break down barriers, so what steps is he taking to get is hitting many subcontractors. Most important and the message across that there are real opportunities for pressing for me today, four months after the Carillion business among small companies? collapse, is the ongoing shutdown of the Midland Metropolitan Hospital. I have raised the matter with Oliver Dowden: My hon. Friend raises a very important the Cabinet Office several times, with Health Ministers, point. As he says, we have already removed complex and even twice here in the Chamber with the Prime pre-qualification questionnaires from low-value contracts, Minister, so when will the Government stop dithering but this afternoon I will again be meeting the small and start work again on this much-needed hospital? business panel, which represents small businesses up and down the country, and we will be discussing exactly Oliver Dowden: I know that the right hon. Gentleman how we can further simplify pre-qualification questionnaires is very passionate about this issue. I can reassure him, and associated bureaucracy. rightly again, that we remain absolutely committed to 259 Oral Answers 16 MAY 2018 Oral Answers 260 getting the new hospital built as quickly as possible, and the first time ever, the unelected House of Lords will we are supporting the trust to achieve that while ensuring have more power over devolved matters in Scotland that taxpayers’ money is spent appropriately. than the elected Scottish Government. As a democrat, how can she justify this outrageous situation? Christian Matheson (City of Chester) (Lab): Although we warmly welcome moves to open up Government Chloe Smith: I have two points. First, I am actually contracts to SMEs, the fact is that they are still being very pleased and grateful to the House of Lords for the crowded out by big suppliers that regularly fail to consideration that it has given to the EU withdrawal deliver, including G4S with its youth custody provision; Bill. It has provided important scrutiny, in particular of Capita with its failing Army recruitment contract, among the devolution clauses for which I and my right hon. manyothers; and, of course,Carillion. Will the Government Friend the Chancellor of the Duchy of Lancaster are introduce a new requirement that firms cannot bid for responsible. Secondly, I think that many Members of new Government contracts while they are still failing to this House would agree that there are many fine meet quality standards on their existing public sector representatives of the Scottish people in this very Chamber jobs? who do a very fine job, and I welcome them to their places. Oliver Dowden: Individual contracting Departments clearly keep the performance of all contractors under Chris Green (Bolton West) (Con): Although review. The hon. Gentleman says that we should ensure constitutional reform is important, will the Minister that small businesses can bid for Government contracts. ensure that the Government remain focused on delivering I announced a range of measures over Easter precisely the services that the British people need? to deal with that issue. Indeed, we have introduced a requirement for all subcontracting opportunities by Chloe Smith: My hon. Friend has it exactly right. principal contractors to be advertised on the Contracts There are many more important issues in the minds of Finder website, which gives SMEs a great chance to bid the electorate. These issues were of course discussed at for work. length during the last general election, when, as I have said, our manifesto was very clear that we did not think House of Lords Reform that reform of the House of Lords was a pressing priority. 2. Neil Gray (Airdrie and Shotts) (SNP): What assessment he has made of the potential merits of the recommendations Mr Gregory Campbell (East Londonderry) (DUP): of the report of the Lord Speaker’s Committee on the In any discussions that the Minister may have with the size of the House of Lords. [905316] Lord Speaker’s Committee, would she be able to impress on its members the need to ensure that the will of the The Parliamentary Secretary, Cabinet Office (Chloe people of the United Kingdom in leaving the EU ought Smith): On 20 February, the Prime Minister wrote to to be uppermost in the minds of the lords and that they the Lord Speaker to respond to the Committee’s overlook that at their peril? recommendations. The Prime Minister has committed to do her bit to reduce the size of the House of Lords by Chloe Smith: This sits with the theme to which I continuing the restrained approach to appointments already alluded, which is that we think that the House that she has taken so far. of Commons should have rightful primacy. Indeed, that is where we see elected representatives of the British Neil Gray: Is not it even a tad embarrassing for the population who are able to carry forward—in the instance Minister that while their lordships have come forward to which the hon. Gentleman refers—the will of the with proposals for reforms of the outdated and bloated British people in leaving the European Union. House of Lords, this Government propose to do nothing UK Constitutional Integrity to reform it? Chloe Smith: No.