Hilary Benn
Main Page: Hilary Benn (Labour - Leeds South)Department Debates - View all Hilary Benn's debates with the HM Treasury
(6 years, 9 months ago)
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Hilary Benn (Leeds Central) (Lab)
Will the Chancellor clarify whether the terms of the public sector private finance initiative contracts with Carillion allow for those contracts to be sold on to other private companies in the event of liquidation?
Mr Hammond
My understanding is that the contracts that are strictly PFI contracts are actually in joint ventures. In that case, it is most likely that the joint venture partner will take over. There are outsourcing contracts that, in theory, could be sold on, but as the Government Department, as the contracting party, will invariably have a right to cancel the contract on the insolvency of the company, in practice it will not be able to be sold on by the official receiver without the agreement of the contracting Department.