Carillion and Public Sector Outsourcing

Jack Dromey Excerpts

Wednesday 24th January 2018 Commons Chamber

[Jack Dromey (Birmingham, Erdington) (Lab)]

It is very good to see you back, Mr Deputy Speaker.

The ideological zeal of the Conservative party has not dimmed since the days of Mrs Thatcher. The mantra then and now is one of “public bad, private good”. I remember then leading a delegation to see the good Lord Heseltine, the then Secretary of State for Defence, to convince him that we had a public sector alternative to privatisation of the royal naval dockyards. When we asked him, “Why then privatise?” he tossed his golden mane over his shoulder and said, “Because I am a Tory.” That says it all about the enduring ideological assumption made by the Conservative party. To this day, the heir to Mrs Thatcher refuses to listen to the reasonable case put by the Opposition for taking back into public ownership failing utilities that are letting the public down.

I have always argued that the public interest should come first, but why should workers come a sorry second? Let us look at the history of what has happened, at outsourcing and at what is threatened at the next stages. On history, we have had 10 years in which the Tories refused to apply TUPE to 6 million public servants, with those public servants paying a catastrophic price as a consequence. Ultimately, the old T&G won. We took the case to the European Court of Justice to force the Government to extend TUPE to cover the public sector. Now, once again, what we thought we had won is threatened by Brexit. We have heard successive Ministers, led by the Foreign Secretary, talking about abolishing red tape. Is guaranteeing workers’ rights on transfer red tape? Nonsense. The Government have refused to guarantee in British law—statute law—that workers will be protected on transfer.

On Carillion, it was a monumental failure by Government and of governance. It is a symbol of the utter irresponsibility and incompetence of the Government, driven by that ideological zeal with catastrophic consequences. Last Tuesday, at the Apprenticeship Centre in my constituency, apprentices were sent home weeping. One said, “What am I going to tell my mum? What do I do now?” Workers were in despair. What we were seeing were the catastrophic consequences of a company that had received three profit warnings, that was still paying dividends and that was not adequately investing in the pension deficit. It is not true that pensions are fully protected—notwithstanding the welcome steps taken by a Labour Government with the Pension Protection Fund. All workers, to a greater or lesser extent, will lose on their pensions.

Finally, when we are in government, the Labour party will act to end that ideological assumption of “public bad, private good”. We will use public spending power in the best interests of the public, in the best interests of workers and in the best interests of small and medium-sized enterprises. The difference between our two parties could not be greater. We will stand up for the public interest.