Interserve

Debate between Lord Browne of Ladyton and Lord Young of Cookham

Wednesday 20th March 2019 Lords Chamber

[Lord Young of Cookham]

On the first point raised by the noble Lord, it is important to understand that what happened to Interserve was totally different from what happened to Carillion, for example. Carillion went bust. Pensioners took a hit. Creditors took a hit. People lost their jobs and there was discontinuity in services. None of that happened with Interserve. It was done with the approval of the pension trustees and the lenders, who wrote off the debt and put £100 million in. There was no discontinuity in services and nobody lost their job. That is important to understand.

The noble Lord asked whether we would have a general review. I announced that we have learned from past lessons; the document to which I just referred has 11 key policy areas in which we can come to better decisions and create a healthier outsourcing market.

The noble Lord is right that Interserve has a general portfolio—it protects the pandas in Edinburgh Zoo. The issue of probation services goes far wider than Interserve, as the noble Lord will know; the MoJ has announced a review of community rehabilitation services, with a view to improving outcomes and better integrating public sector, private sector and third sector providers.

[Lord Browne of Ladyton (Lab)]

My Lords, the annual revenues of Interserve were £2.9 billion, two-thirds of which it got from the public sector. The debt holders got this business for approximately £600 million, and will undoubtedly sell off its profitable parts for more than they were owed. However, the unsecured creditors have been left fighting over £600,000. Were the Government part of that deal? How much was owed to these creditors? Why do the Government think that that amount of money is safe? These people will lose lots of money and many of them are small or medium-sized businesses.

[Lord Young of Cookham]

There is no reason why trade creditors of Interserve should lose any money. The hit was taken by the shareholders and the lenders who wrote off their debt and converted it into equity. The subsidiary companies providing goods and services to the public and private sectors are wholly unaffected by what has happened to the parent company, which has simply changed ownership. The creditors of the subsidiary companies are in exactly the same position as they were before the transaction over the weekend.

Government Policy: Plain English

Debate between Lord Browne of Ladyton and Lord Young of Cookham

Wednesday 19th December 2018 Lords Chamber

[Lord Young of Cookham]

Like the noble Baroness, I too follow the progress of the Plain English Campaign. A winner this year was an NHS trust, the George Eliot Hospital, which was commended for its publications. So far as advice to government Ministers is concerned, the Government Digital Service runs workshops to help Ministers and civil servants to write clearly. It has had workshops with the DWP and Public Health England, and its content team maintains the content of the most trafficked content. It encourages everybody to avoid jargon but my brief tells me that content on websites should “be updated to improve the end-to-end user journey”.

[Lord Browne of Ladyton (Lab)]

My Lords, on any reasonable measure, all three services of the UK’s Armed Forces are smaller now than when the Government took responsibility for them. The Navy has fewer vessels than it had in 2003 and the Government have no intention of building more than there were in 2003. However, yesterday, in an otherwise pretty vacuous Statement, the Secretary of State for Defence said to the other place:

“The Royal Navy has increased its mass and points of presence around the world”.—[Official Report, Commons, 18/12/18; col. 657.]


Talking about clarity, what does that mean?

[Lord Young of Cookham]

Like the noble Lord, I read Patrick Kidd’s article in the Times today that took my right honourable friend to task for some of the verbs and phrases he used in the Statement. My right honourable friend may well be a contender next year for the Plain English Campaign’s Golden Bull Award, which this year was won by a sports commentator who said:

“He’s given the referee no choice but to consider his options”.