Covid-19 Contracts

Cabinet Office – in the House of Commons at on 31 March 2022.

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Photo of Neale Hanvey Neale Hanvey Alba, Kirkcaldy and Cowdenbeath

What recent discussions he has had with Cabinet colleagues on the need to ensure value for money in the award of covid-19 contracts.

Photo of Jacob Rees-Mogg Jacob Rees-Mogg Minister of State (Minister for Brexit Opportunities and Government Efficiency)

Her Majesty’s Government’s priority throughout the pandemic has been to protect the lives and livelihoods of citizens across the United Kingdom. We have been clear from the outset that all contracts, including those designed to tackle coronavirus issues, must continue to achieve value for money for taxpayers and use good commercial judgment, and that the details of any awards made should be published in line with Government transparency guidelines.

Photo of Neale Hanvey Neale Hanvey Alba, Kirkcaldy and Cowdenbeath

According to the National Audit Office investigation into the management of PPE contracts, billions of pounds of taxpayers’ money is still at risk. Between March 2020 and October 2021, it cost £737 million to store excess PPE, and costs are currently £7 million per month. Over half the VIP suppliers provided PPE that the Department of Health and Social Care considers unsuitable for frontline services; in addition, some 1.5 billion items of PPE are currently in storage and expected to expire before they can be distributed. What is being done to understand the governance issues around this and the cost of that waste? How will that be reported to the House?

Photo of Jacob Rees-Mogg Jacob Rees-Mogg Minister of State (Minister for Brexit Opportunities and Government Efficiency)

The Government were facing an emergency. PPE was needed immediately. It was obviously right to order more than was necessary—that was fundamental. At the beginning of the pandemic, nobody knew precisely how much would be needed, but we knew we needed supplies. The Government succeeded in getting domestic production, excluding gloves, up from 1% to 70%.[This section has been corrected on 26 April 2022, column 7MC — read correction]

The hon. Gentleman refers to 50% of suppliers having something faulty: all that means is that in a shipment that may have been of tonnes of PPE, one item was faulty. It does not mean that 50% of the items received were faulty. That is a fundamental error that people have been making in deliberately misunderstanding what the National Audit Office has said. Our duty was to get PPE in quickly. That was done properly, professionally and to the benefit of the nation.

Photo of Rachel Hopkins Rachel Hopkins Shadow Minister (Cabinet Office)

The Minister talks about value for money, yet we know that the Government handed hundreds of millions of pounds of our money to an offshore company involving a Tory peer, created just days before and without any transparency, that sold Government PPE at three times the price it had bought it for. It is now in mediation because the PPE was not even fit for use. Millions of items are now stuck in storage, costing us even more.

The Government refuse even now to reveal what they know about the company in question, and our letters to the Chancellor of the Duchy of Lancaster go unanswered. Perhaps the Minister will answer this: when will we finally get the promised procurement Bill? What safeguards will be in it to stop yet more public money from being wasted and to end the so-called emergency bypassing of procurement regulations?

Photo of Jacob Rees-Mogg Jacob Rees-Mogg Minister of State (Minister for Brexit Opportunities and Government Efficiency)

This is a classic socialist point of view—that we should not have done anything to get PPE in urgently and, to go to the hon. Lady’s earlier question, that we should have just sat comfortably upon our hands and allowed PPE not to be provided around the country. The Government got on with doing the job that was necessary, and of course they ensure value for money. Let anyone who has overcharged us be in no doubt: we are after them.

Cabinet

The cabinet is the group of twenty or so (and no more than 22) senior government ministers who are responsible for running the departments of state and deciding government policy.

It is chaired by the prime minister.

The cabinet is bound by collective responsibility, which means that all its members must abide by and defend the decisions it takes, despite any private doubts that they might have.

Cabinet ministers are appointed by the prime minister and chosen from MPs or peers of the governing party.

However, during periods of national emergency, or when no single party gains a large enough majority to govern alone, coalition governments have been formed with cabinets containing members from more than one political party.

War cabinets have sometimes been formed with a much smaller membership than the full cabinet.

From time to time the prime minister will reorganise the cabinet in order to bring in new members, or to move existing members around. This reorganisation is known as a cabinet re-shuffle.

The cabinet normally meets once a week in the cabinet room at Downing Street.

Minister

Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.

shadow

The shadow cabinet is the name given to the group of senior members from the chief opposition party who would form the cabinet if they were to come to power after a General Election. Each member of the shadow cabinet is allocated responsibility for `shadowing' the work of one of the members of the real cabinet.

The Party Leader assigns specific portfolios according to the ability, seniority and popularity of the shadow cabinet's members.

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Chancellor

The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.

Tory

The political party system in the English-speaking world evolved in the 17th century, during the fight over the ascension of James the Second to the Throne. James was a Catholic and a Stuart. Those who argued for Parliamentary supremacy were called Whigs, after a Scottish word whiggamore, meaning "horse-driver," applied to Protestant rebels. It was meant as an insult.

They were opposed by Tories, from the Irish word toraidhe (literally, "pursuer," but commonly applied to highwaymen and cow thieves). It was used — obviously derisively — to refer to those who supported the Crown.

By the mid 1700s, the words Tory and Whig were commonly used to describe two political groupings. Tories supported the Church of England, the Crown, and the country gentry, while Whigs supported the rights of religious dissent and the rising industrial bourgeoisie. In the 19th century, Whigs became Liberals; Tories became Conservatives.