Oral Answers to Questions

Diana Johnson Excerpts

Tuesday 30th January 2018 Commons Chamber

The Secretary of State was asked—

[Diana Johnson (Kingston upon Hull North) (Lab)]

1. What assessment he has made of the effect of the liquidation of Carillion on the viability of small businesses.

[Sir Robert Syms (Poole) (Con)]

10. What steps he is taking to support businesses affected by the liquidation of Carillion.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

I have set up a taskforce bringing together small and medium-sized businesses, the Government, local government and trade unions to assist with the impact on small and medium-sized enterprises and the supply chain. The taskforce has delivered a range of supportive measures, including assistance from Her Majesty’s Revenue and Customs for those experiencing difficulties and more than £900 million of support from UK lenders.

[Diana Johnson]

I thank the Secretary of State for his answer, but, with 30,000 small firms thought to be owed money by Carillion due to late payments and fees, will he look at the idea of project bank accounts that hold money in trust in ring-fenced bank accounts to make sure this situation does not arise again? The Specialist Engineering Contractors Group wants Britain to follow what is already happening in Australia, where such project bank accounts are used in all large public and private building contracts.

[Greg Clark]

I will indeed look at that, and it has been one of the recommendations of the taskforce. It is important that we learn all the lessons and apply them quickly, and this is one such suggestion.