Chancellor of the Duchy of Lancaster (Rt Hon MP): I
previously provided a Written Ministerial Statement on 29 April
2020 in relation to indemnities granted for IP infringement, in
respect of the designs, and against product liability claims
against the manufacturers of Rapidly Manufactured Ventilator System
(RMVS) products through the Ventilator Challenge. I also laid a
Departmental Minute before Parliament setting out the detail of
these indemnities.
The Ventilator Challenge has been a resounding success, with four
designs in production and over 7,500 devices delivered to the
NHS. The Cabinet Office intends to grant similar indemnities in
letters with other parties involved in the BlueSky Ventilators
consortium. The contents of these letters is still under
negotiation in the majority of cases.
It is normal practice, when a government department proposes to
undertake a contingent liability in excess of £300,000 for which
there is no specific statutory authority, for the Department
concerned to present to Parliament a Minute giving particulars of
the liability created and explaining the circumstances; and to
refrain from incurring the liability until fourteen parliamentary
sitting days after the issue of the Minute, except in cases of
special urgency.
Due to the urgent need to finalise the letters and release
payments due to designers and manufacturers, it is not possible
to allow the required 14 days’ notice prior to the liabilities
going live. Any delay would result in an unacceptable delay in
payments due to designers and manufacturers who are supported by
a largely SME supply chain.
The precise commercial terms which have been negotiated for each
supplier are, and will remain, commercially confidential. While
it is difficult to estimate the potential liability exposure, it
could exceed £300,000. For this reason, I am informing Parliament
of these arrangements.
On this basis, I have today laid before Parliament a Departmental
Minute setting out what these indemnities are.
The Treasury have approved these liabilities. However, any
concerned Member of Parliament can contact the Cabinet Office who
will be happy to provide a response.
