Carillion

Debate between Stephen Lloyd and David Lidington

Monday 15th January 2018 Commons Chamber

[Mr Lidington]

Yes, the Government did due diligence within the rules that I described earlier, and of course all the companies that signed up to those joint ventures knew that they were taking on that other potential risk, as well as the share to which they had definitely committed themselves.

[Stephen Lloyd (Eastbourne) (LD)]

How many profit warnings does a major company have to issue before this Government decide that they will probably not award it major and significant contracts—more than three, perhaps?

[Mr Lidington]

A large number of companies issue profit warnings from time to time. If all potential contracting parties with such a company were suddenly to pull out and say it should have no more business in any circumstances, that would be guaranteed to block any chance of the company solving its problems. The Government’s position is as I have described it: we operated at all times within the rules of public procurement as laid out in regulation and in law, but once Carillion had made the profit warnings, we took steps to ensure that greater degrees of protection were built into the small number of specific contracts that were awarded after July last year.