Carillion and Public Sector Outsourcing

Nick Smith Excerpts

Wednesday 24th January 2018 Commons Chamber

[Mr Lidington]

I am grateful to you, Madam Deputy Speaker. I have given way a number of times already, and I want to make some progress. I certainly intend to give way again, but I am conscious that we have finite time available for the debate, and the time taken up by taking interventions is speaking time taken away from Back Benchers.

Network Rail judged in this case that Carillion was best placed to do the work, because it had been engaged on the project for three years already and had completed all the design work successfully. By agreement with the official receiver, former Carillion employees and suppliers continue to work on these rail projects, and today they are progressing as planned.

Since the liquidation on 15 January, the Government have responded promptly and appropriately, supporting the official receiver to manage the liquidation. We have also made funds available to allow an orderly wind-down of the company’s affairs. It is worth my explaining that this company was in such trouble that it could not even fund its own administration. If the Government had not stepped in and agreed to cover the costs of the official receiver, there would have been a real threat to public services in schools, hospitals and prisons. Staff would not have come to work last Monday, as they would not have been paid.

[Nick Smith (Blaenau Gwent) (Lab)]

I thank the Minister for giving way—at last. In his letter today, he refers to an investigation into the conduct of Carillion’s directors. Is the chair of Carillion, Philip Green, still an adviser to the Government on corporate responsibility?

[Mr Lidington]

No, and he ceased to be an adviser after the Prime Minister took office.