Carillion and Public Sector Outsourcing

Louise Ellman Excerpts

Wednesday 24th January 2018 Commons Chamber

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

It is good to see you back in the Chair, Mr Deputy Speaker.

I will focus on the impact of Carillion’s collapse on the completion of the new Royal Liverpool Hospital. I am extremely concerned about subcontractors that have not been paid for work done, apprentices uncertain of their future, pensions at risk and the prospect of workers losing their jobs. However, in the short time available I will focus on the importance of securing a date for the completion of the new Royal, where 90% of the £365 million contract has been completed. I am told that the “hospital company”—the private finance initiative company set up to build the hospital—can appoint a contractor to complete the job, and that the cost will be met from insurance, but no date has yet been given.

There is an added complication. The hospital company is owned by PIP Infrastructure Investment Ltd and Carillion Private Finance (Health) Ltd. Carillion Private Finance (Health) Ltd is controlled by Carillion Private Finance Ltd and is a “subsidiary undertaking” of Carillion plc, and Carillion plc is one of the Carillion companies that is in compulsory liquidation. What does this complex web mean for the appointment of a new contractor and the completion of the hospital?

When I raised this issue in the House previously, I was told by the Minister that the matter could be dealt with simply and that it was for the existing hospital to resolve, but that is not the case. Assurances that the hospital will be completed are simply not enough. I want firm dates for when a new contractor will be appointed and when that new hospital will be open for business. As a matter of urgency, the people of Liverpool need the services that the hospital will provide. Carillion’s collapse must not leave Liverpool in the lurch. I call on the Minister to give the answers, and to give them now.