Public Services: Security of Provision Debate
Full Debate: Read Full DebateLord Maclennan of Rogart
Main Page: Lord Maclennan of Rogart (Liberal Democrat - Life peer)Department Debates - View all Lord Maclennan of Rogart's debates with the Cabinet Office
(13 years ago)
Lords ChamberMy Lords, I am not fully briefed on the exact details of my honourable friend Paul Burstow’s diary. We have of course been concerned with ensuring that the services provided by Southern Cross should be maintained. There have been various negotiations. Southern Cross confirmed in an announcement to the Stock Exchange on 27 September that it had reached agreement with its principal landlords and that it would transfer the group’s care home leases to its landlords and the related business and assets for the operations of those homes to its landlords or alternative care providers.
My Lords, does not Southern Cross illustrate that it is not only small and medium sized companies that need to be watched? Is there a continuing process in respect of the larger companies that are providing comparable public services?
My Lords, one or two of the providers of public services in the private sector are now among the largest companies in Britain and the world. Noble Lords who read the financial pages may know that G4S has just taken over another major multinational company. Liberata, a back-office outsourcing firm, nearly went bankrupt in 2008, partly because of its pensions liability, and had to be restructured. It is now partly owned by its employees and partly owned by the Pension Protection Fund. The Government, as with all others in such circumstances, do get engaged in trying to re-establish companies in difficulty that are playing a valuable role.