Labour will present a Humble Address motion to MPs on Tuesday [6
December], forcing a binding Commons vote to secure the release
of documents relating to the award of government PPE contracts
worth more than £200m to a company linked to Conservative peer
. [1]
PPE Medpro was awarded two public contracts worth £203m to supply
millions of face masks and sterile surgical gowns during the
COVID-19 pandemic [2].
In May 2020, the Department of Health struck an £81 million deal
with PPE Medpro to supply 210 million IIR face masks at 38.5p a
unit, despite the same masks manufactured by the same company
being provided by other suppliers in the same period for as
little as 14.5p. [3] A £122 million contract to supply 25 million
gowns was awarded in June 2020, but the gowns were rejected after
a technical inspection and never used. [4]
Documents seen by the Guardian revealed £29 million of PPE
Medpro’s profits were later transferred to an Isle of Man trust,
of which Conservative peer and her adult children were
the beneficiaries. [5]
Labour’s motion would compel the release of “all papers, advice,
and correspondence involving Ministers and Special Advisers,
including submissions and electronic communications” relating to
the contracts to the Public Accounts Committee.
The Party is also demanding the Prime Minister commits to
supporting Labour’s amendments to the Procurement Bill when it
comes to the Commons in the New Year. [6]
Loopholes included in the Government’s proposed legislation will
make it easier for ministers to bypass existing rules for the
award of taxpayers’ money in contracts.
The Bill stands to allow procurement decisions made without
competitive procedures by the personal decision of ministers,
cementing into law the controversial ‘VIP lane’ that saw £1.7
billion of public money dished out and was declared illegal by
the High Court earlier this year. The Government had previously
denied the existence of the channel. [7]
During the Lords stages of the Bill, the Government was defeated
on five of the six amendments that were put to a vote, but in a
division that saw the highest turnout of Tory peers, blocked
attempts to ban VIP lanes for direct award in procurement. [8]
, Labour’s Deputy Leader
and Shadow Chancellor of the Duchy of Lancaster, said:
“Britain is sick of being ripped off by the Tories. We want our
money back.
“Tory MPs can either back Labour’s binding vote to force
ministers to come clean on the murky award of £203 million in
taxpayers’ money to a shady company linked to a Tory peer or they
are choosing to be complicit in a cover-up.
“The ‘VIP lane’ for PPE is a scandal of epic proportions that has
allowed the shameful waste of taxpayers’ money and inexcusable
profiteering by Tory cronies.
“Instead of straining every sinew to clawback taxpayers’ money,
and fresh from writing off the billions he carelessly lost to
Covid fraud, is pushing a Procurement Bill
full of loopholes that would give Tory ministers free reign to do
it all over again.”
Ends
Notes to editors:
[1] Motion:
Government Waste and PPE Contracts
That this House –
(a) notes that the Department for Health and Social Care
purchased more than £12 billion of Personal Protective Equipment
(PPE) in 2020-21;
(b) regrets that the Government has now written £8.7 billion off
the value of this £12 billion, including £4 billion that was
spent on PPE which did not meet NHS standards and was unusable;
(c) is extremely concerned that the Government’s high priority
lane for procurement during the pandemic appears to have resulted
in contracts being awarded without due diligence and wasted
taxpayer money;
(d) considers there should be examination of the process by which
contracts were awarded through the high priority lane;
(e) accordingly resolves that an Humble Address be presented to
His Majesty, that he will be graciously pleased to give direction
that all papers, advice, and correspondence involving Ministers
and Special Advisers, including submissions and electronic
communications, relating to the Government contracts for garments
for biological or chemical protection, awarded to PPE Medpro by
the Department for Health and Social Care, reference
CF-0029900D0O000000rwimUAA1 and 547578 respectively, be provided
to the Public Accounts Committee.
[2] The Guardian, 'Ministers
face pressure to explain PPE Medpro contracts decision'
[27/11/22]
[3] The Times, ': masks from firm linked to
Tory peer cost double' [05/12/22]
[4] The Guardian, ‘Government
paid firm linked to Tory peer £122m for PPE bought for £46m’
[27/03/22]
[5] The Guardian, 'Revealed:
Tory peer secretly received £29m from
‘VIP lane’ PPE firm' [23/11/22]
[6] Labour plans to force votes to the Procurement Bill to:
[7] £1.7bn of PPE contracts went through VIP 'high-priority lane'
[11/02/21]https://labour.org.uk/press/government-declines-for-a-sixth-time-to-publish-details-of-companies-winning-work-through-its-vip-fast-lane-for-contracts/
[8] Procurement Bill [HL] Division 1: 30 November 2022: 201
contents: 220 not contents
https://votes.parliament.uk/Votes/Lords/Division/2869