Interserve

Chris Stephens Excerpts

Monday 18th March 2019 Commons Chamber

[Oliver Dowden]

As ever, my hon. Friend is absolutely right. First, straight off the bat, I can give suppliers in his constituency that assurance. There is absolutely no change in the status of the credit rights of those suppliers who are providing services, as the operating companies remain unaffected; it is the ownership that has changed. He rightly raises the point about supply chain finance. That is a major issue. I have twice already brought in strategic suppliers and reminded them of the importance of paying their subcontractors on time, and we are backing that up with action. In November, we announced a prompt payment initiative to ensure that, in future, if they fail to pay their suppliers on time, they will be excluded from Government contracts.

[Chris Stephens (Glasgow South West) (SNP)]

I refer to my entry in the Register of Members’ Financial Interests and to my position as chair of the Public and Commercial Services Union parliamentary group. May I correct the Minister on two things? First, the Foreign and Commonwealth Office contract was not renewed in August 2018—that was when the bid was accepted. Can he confirm that the actual renewal date of that contract was December 2018 and can he perhaps explain the four-month delay? Was it because of Interserve’s financial position? Secondly, he said that jobs are protected. Will he therefore explain why the Interserve FCO contract plans to make five employees redundant on Friday and issue them with redundancy notices? I really seek an assurance from the Minister that pay, jobs, pensions and employment terms and conditions are protected for Interserve employees delivering public services?

--- Later in debate ---

[Oliver Dowden]

As I have said, I would rather that this corporate restructuring had happened in a smoother way. It has happened through a pre-pack process, but as a result, the companies actually delivering the public services are unchanged; it is their ownership that has changed. I reassure the hon. Gentleman that all the contracts currently being delivered by Interserve will continue to be delivered and will be unaffected, because their specific corporate ownership has not changed. Jobs will not be lost as a result and pensions will not be affected. Indeed, the company’s balance sheet is strengthened.

[Chris Stephens]

On a point of order, Mr Deputy Speaker. The Minister has said on two occasions that no Interserve employees would lose their jobs, but there has been an acknowledgement that five redundancy notices will be issued on Friday. I would suggest that those statements are incompatible. Can you advise me on how the Minister can correct the record about jobs being lost, and is there any other way in which Members can lobby the Foreign and Commonwealth Office to ensure that those five employees are not served with a redundancy notice on Friday?

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

The hon. Gentleman has resolved the matter by putting it on the record. I know that through his good offices, and given his background, he will not let the issue drop today. I am sure that he will find other methods to ensure that he continues to support the employees whose jobs may be at risk.

Business of the House (Today)

Ordered,

That, at this day’s sitting, proceedings on the Motion in the name of Jeremy Corbyn relating to the Human Medicines (Amendment) Regulations 2019 (S.I., 2019, No. 62) may continue, though opposed, for 90 minutes after the commencement of proceedings on the motion for this Order, and shall then lapse if not previously disposed of, and Standing Order No. 41A (Deferred divisions) will not apply.—(Iain Stewart.)