A north-east MSP has written to the Economy Secretary seeking answers on the contract tendering process after an Aberdeenshire firm claimed its contract for bottling hand sanitiser was not fulfilled by the Scottish Government.
Food ingredients manufacturer Macphie, headquartered at the Glenbervie Estate, Aberdeenshire, has been working with other Scottish businesses to produce hand sanitiser, to be supplied direct to NHS facilities during the coronavirus crisis.
But last week the CEO of the firm, Andy Stapley, claimed the company was told its contract would be cut short after producing 90,000 bottles, adding it had been led to believe it would be responsible for bottling 250,000 and, as a result, had been forced to furlough 45 staff.
In a statement issued on Friday, the Scottish Government said the family-owned firm, and other bottling firms, had “fulfilled the contracts” placed with it, adding a new contract has been placed with another Scottish firm for the next share of the product, based on “cost and capacity”.
North-east Conservative MSP Liam Kerr has written to Economy Secretary Fiona Hyslop, stating he was “distressed and angry” by the development and asking for details of how the contract was tendered.
In his letter, he said: “Despite that challenge, the north-east, traditionally thought of as the engine room of Scotland’s economy, has changed gears to underpin Scotland’s efforts against coronavirus.
“I have been heartened to witness and highlight, for example, the huge local effort to switch production to making hand sanitiser for our NHS and other key areas.
“And it was no small matter of pride to hear the First Minister speak so positively of the efforts of Macphie of Glenbervie, one of the north-east’s premier food and drink companies, and one of a number of local firms who have changed gears and kept the lights on as an added benefit.
“So I was massively perturbed to read reports last week that Macphie has been reported as losing out on a 250,000 litre contract for making sanitiser because the SNP Government has identified a cheaper option in the central belt.”
I have been heartened to witness and highlight, for example, the huge local effort to switch production to making hand sanitiser for our NHS and other key areas.”
Liam Kerr MSP.
In his letter, Mr Kerr has asked Ms Hyslop to provide details of the contract winner and how this was tendered.
He added: “I would also be much obliged if you could explain whether this tendering process was done via the Scot Excel model, and whether this model – geared as it is towards bulk production and thus certain parts of Scotland – should really be the best way to ensure jobs are preserved right across Scotland in these unprecedented times.”
Set up in 2008, Scotland Excel is a non-profit organisation funded by all 32 local authorities across Scotland, which provides procurement expertise for the local government sector.
Speaking last week, Mr Stapley said he was “extremely disappointed” with the decision, adding that producing hand sanitiser had allowed the firm to keep its Tannochside site, near Glasgow, operating.
However, this will now cease operating while the current crisis continues, with 45 additional staff placed on furlough.
The First Minister praised the firm during her daily coronavirus briefing more than a fortnight ago as she gave her “heartfelt thanks” to businesses contributing to the fight against the pandemic.
Macphie, which has made its name as a food and ingredient manufacturer, was one of more than 1,600 Scottish firms or individuals to answer a call for help issued to the business community around a month ago.
In the statement issued on Friday, the Scottish Government said: “Macphie, along with other bottling firms, has fulfilled the contracts placed with it – to bottle hand sanitiser being produced by Calachem to supply the NHS and social care sector.
“A new contract for this work is now being placed with another Scottish bottling firm for the next tranche of Calachem product, on grounds of cost and capacity.
“We are grateful to all the Scottish companies who have rallied to support the NHS at this critical time.
“Decisions about where to fill bottles will continue to take into account the needs of NHS clinicians and the best possible value for money, as we work to keep the NHS supplied.”
