Carillion

Lindsay Hoyle Excerpts

Thursday 24th May 2018 Commons Chamber

Select Committee statement

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

We now come to the first Select Committee statement. Meg Hillier will speak on her subject for up to 10 minutes, during which no interventions may be taken. At the conclusion of her statement, I will call Members to put questions on the subject of the statement, and Meg Hillier will respond to those in turn. I call the Chair of the Public Accounts Committee.

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[Christian Matheson (City of Chester) (Lab)]

I congratulate the Chair of the Committee on another excellent report, and on the forensic and measured way in which she delivered her statement. I hope that the Government take fair notice, although I worry that that may be a forlorn hope.

The Government were given a recommendation by the commercial relationships board that Carillion should be designated “high risk”. The Government ignored that, although the reason why remains unclear. Can my hon. Friend provide any further evidence of the reason for that rejection? The Government did not disclose that designation at the time of the Carillion scandal. Was that to protect their mates in Carillion rather than the taxpayer? The former chair of Carillion, Philip Green, was a Conservative supporter and Government adviser. Was the Government’s relationship with him more important than their responsibility to the taxpayer? We hope that the Government will now act on that responsibility and stop awarding contracts to big suppliers that continually fail to deliver.

The Government are too reliant on a small range of big private contractors. They have done little to widen that charmed circle, even though doing so would increase competition, support small and medium-sized enterprises, reduce costs and, critically, make us less reliant on suppliers in financial straits. Will my hon. Friend now widen her inquiry to look at others that may have been signed off by Ministers, contrary to recommendations of the commercial relationships board?

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

I obviously welcome the hon. Gentleman to his position, but for future reference, he is supposed to ask a shortish question. Brief questions are ideal, even from Front-Bench speakers.

[Meg Hillier]

I would say to my hon. Friend that a piece of the jigsaw is missing. The papers released to the Public Accounts Committee only went so far, and the evidence we were given does not indicate when the Government made a decision about what to do with the recommendation in the risk assessment papers. I cannot provide any more evidence for why the Government chose not to implement the “black” rating at that stage, but I assure my hon. Friend that we are widening our inquiry and have access to the other papers. Sadly, and rather depressingly, the Committee has a large back catalogue, and we have highlighted a number of issues to do with contract management in government. We will not leave a stone unturned in our inquiry, and as I said to the hon. Member for Kettering (Mr Hollobone), we hope to publish a report by the summer recess.