Business of the House

Cat Smith Excerpts

Thursday 18th January 2018 Commons Chamber

[Andrea Leadsom]

I encourage my hon. Friend to write to the Department for Business, Energy and Industrial Strategy to seek its thoughts. I would be happy to take up the matter on his behalf.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

In the light of the collapse of Carillion, do the Government intend to make a statement on the decision to award the Department for Work and Pensions facilities management contract to Interserve, another company with huge debts and a large pension deficit that has issued numerous profit warnings?

[Andrea Leadsom]

As the hon. Lady will be aware, the Chancellor of the Duchy of Lancaster has already made a statement, and I am sure that he will make further such statements. The Government are very focused on looking at this from every aspect. I have been absolutely reassured that all Government contracts are kept closely under review, as indeed the ones with Carillion were. As she will know, the decision was taken following profit warnings that Carillion contracts would be awarded as joint-venture contracts, to ensure continuity should something happen. Equally, she must understand that profit warnings in themselves do not mean that it would be legitimate then to rule out a company from being able to accept Government contracts.