Capita Debate

Full Debate: Read Full Debate
Department: Cabinet Office

Capita

Mark Pawsey Excerpts
Thursday 1st February 2018

(6 years, 9 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts

Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Oliver Dowden Portrait Oliver Dowden
- Hansard - - - Excerpts

Behind the right hon. Gentleman’s question is an important point about the diversity of suppliers in this market. We do need to look to diversify further. That is why, for example, we have set a target that 33% of all our Government contracting should be with small and medium-sized enterprises—precisely to ensure that we have that greater diversity. On his point about state bail-out, we have done precisely the opposite of a state bail-out. Carillion went into liquidation, so its shareholders paid the price; because Capita has decided to stop paying dividends, its shareholders are paying the price. Therefore, it is not correct to say that the state is bailing them out in this situation.

Mark Pawsey Portrait Mark Pawsey (Rugby) (Con)
- Hansard - -

Is not the Government’s role to continue to act as a prudent customer and to continue to monitor their suppliers and the services provided? Right now, the best thing that the Government can do is to allow the company to get on with its plans to restructure its business.

Oliver Dowden Portrait Oliver Dowden
- Hansard - - - Excerpts

Yes, my hon. Friend is absolutely right. Capita and its executive and shareholders are responsible for Capita. Our responsibility as a Government is for the continued delivery of public services—to make sure that the services on which the public rely continue to be delivered. That is exactly what we did in respect of Carillion, and that is exactly what we are ensuring in relation to contingency plans for all our strategic suppliers, including Capita.