Barry Sheerman
Main Page: Barry Sheerman (Labour (Co-op) - Huddersfield)Department Debates - View all Barry Sheerman's debates with the Cabinet Office
(6 years, 9 months ago)
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Oliver Dowden
Yes, Labour let lots of contracts to private companies, because it believed that they had the expertise to deliver them, and that is exactly what we are doing. Interestingly, since the surge in the use of PFIs that took place under the Labour Chancellor before last, Mr Gordon Brown, we have tightened up the terms of PFI. We are learning the lessons from some of the excessive PFI contracts that we saw, which had underneath them ludicrous service fees for some of the services provided.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Capita is a significant employer in Huddersfield in its shared transport business. It has a very important role in gas safety for the Health and Safety Executive. It is a very important company. Nobody on the Labour Benches wants to see it fail; like all businesses, we want to it to succeed. There is nothing wrong with a public-private partnership: what is important is getting the contract and the relationship right. What went wrong in many PFIs was rotten contracts that still bedevil local hospitals and local schools.
Oliver Dowden
The hon. Gentleman makes a very important point. He is precisely right. There is nothing wrong, per se, with engaging with the private sector for the delivery of services, but we must ensure that there is rigour in the contracts. Many contracts in the past have not been properly negotiated and have not delivered value for the public sector, and they will continue to burden us for many decades to come. However, that is not an invalidation of the model; it is about problems with specific contractual negotiations.