Thursday, 21 February, 2019


Jeremy Corbyn urges finish to outsourcing 'racket'

A logo is seen in front of cranes standing on a Carillion construction site in central London A logo is seen in front of cranes standing on a Carillion construction site in central London Britain
Bennie Garza | 18 January, 2018, 01:00

Following her comments, which were said in a BBC interview, she tweeted: "Following my radio interview and the Express & Star article, I wanted to explain that I heard about Carillion in passing and I apologise that I did not follow it up".

Carillion went into liquidation this week as it has a total of £1.5 billion in debt, according to The Independent.

Jeremy Corbyn has called for an end to the "costly racket" of outsourcing public services as he clashed with Theresa May over Carillion's collapse.

In response, the Labour leader accused May and her ministers of negligence, and lambasted the wider system of providing public services through companies such as Carillion, Virgin, G4S and Capita.

The prime minister responded: "I recognise that of course this has been a hard time for a number of people, concerned about their jobs, about public services, and about pensions".

Theresa May and Jeremy Corbyn at PMQs.

Amid calls for bonuses paid to Carillion executives to be clawed back, the PM said the Insolvency Service was fast-tracking an investigation into the collapse of the firm and the conduct of its current and former directors.

"Capita and Atos can continue to destroy lives thorough damages and disabilities assessments of many people with disabilities and win more government-funded contracts".

The issue dominated Prime Minister's Questions, with Mr Corbyn accusing Theresa May and other ministers of "negligence" by continuing to award Carillion contracts in the second half of 2017 despite the firm issuing a series of profit warnings.

Corbyn began by asking why the government had signed £2bn-worth of contracts with the firm in the last six months, "even after the share price was in freefall and the company had issued profit warnings".

He also demanded to know why there was no permanent crown representative in place at Carillion as it fell into difficulties.

May responded by saying that to refuse to do any more business with firms after they released a profit warning "would be the best way to ensure that companies failed and jobs were lost".

Mrs May insisted that the Government chief commercial officer and the Cabinet Office's director of markets and suppliers took over the responsibilities while the position was vacant.

"The construction giant's collapse is a disaster not just for employees and taxpayers, but for public-private partnership policy", says The Guardian, adding that the "list of failures and disappointments is lengthening".

"The vast majority of this country in employment are employed by the private sector".

"We were a customer of Carillion, not the manager of Carillion, and that is a very important difference", she told MPs.

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