Carillion and Public Sector Outsourcing

Nicholas Brown Excerpts

Wednesday 24th January 2018 Commons Chamber

[Andrew Griffiths]

This taskforce was requested by the trade unions because they thought that it would have value. If the hon. Gentleman does not think that that is an effective thing for us to do, perhaps he will have a word with his friend Len.

The taskforce includes representatives of business sector organisations, the TUC, the Federation of Small Businesses, the Department for Work and Pensions, the Cabinet Office, the Local Government Association and the Construction Industry Training Board. We are working together to address the challenges, and to come up with solutions that will support the affected businesses and employees.

Finally, there is the issue of accountability. There have been questions about directors’ pay and bonuses. I can reassure the House that my right hon. Friend the Secretary of State has written to the Insolvency Service asking it to investigate the actions of the directors properly. He has also written to the Financial Reporting Council to ensure that the actions of not just the current directors, but previous directors, are thoroughly investigated. Powers include the ability to claw back bonuses if that is required.

We have stepped up to work with those businesses that, through no fault of their own, find themselves in a difficult position. We give a commitment to this House that at the forefront of our efforts are the thousands of people whose jobs and livelihoods, through no fault of their own, have been affected by the Carillion insolvency—

[Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Main Question accordingly put.

Question agreed to.

Resolved,

That an humble Address be presented to Her Majesty, That she will be graciously pleased to give directions to the Chancellor of the Duchy of Lancaster that the assessments of risks of Government Strategic Suppliers by Her Majesty’s Ministers referred to in the Answer of 19 December 2017 to Question 114546 and any improvement plans which Crown Representatives have agreed with such strategic suppliers since 2014 be provided to the Public Accounts Committee.

[Andrew Gwynne (Denton and Reddish) (Lab)]

On a point of order, Mr Deputy Speaker. The Municipal Journal has published an article today stating that Whitehall officials rushed out the provisional local government finance settlement before Christmas, knowing that the figures it was based on were wrong and that the information presented by Ministers to this House was incorrect. The Municipal Journal also reveals that the Valuation Office Agency notified the then Department of Communities and Local Government prior to the statement being made.

Given that 195 local authorities are now set to lose out, with Manchester City Council understood to be the biggest loser, can you advise me whether the Secretary of State for Housing, Communities and Local Government has indicated that he will make statement to the House about this debacle and apologise to Members for his Department’s knowingly having given the House incorrect information? If he has not given such an indication, what procedures may be utilised to bring Ministers to the House for questioning?