Government must get its priorities right on Carillion

Commenting on the news that Carillion – the holder of numerous government contracts and some services at QA Hospital – has entered insolvency, Portsmouth South Member of Parliament Stephen Morgan has raised his concerns.

When the company announced it was going into liquidation yesterday, a number of trade unions said it was a terrible time for the thousands of staff employed by Carillion.

Over 800 members of staff employed by the company and working at Queen Alexandra Hospital in the city face job uncertainty following the news.

Stephen Morgan MP said:

“The Government needs to get its priorities right on this. Its primary concern must be protecting services and jobs whilst getting the best deal for the taxpayer.

However, this appears to be a case not just of corporate, but governmental failure. I am deeply concerned by the apparent lack of due diligence undertaken by this Government and fully support calls for a thorough investigation.

I have sought assurances that local NHS services will remain open as usual and have received this from our hospital trust’s chief executive. I am also assured the Royal Navy’s personnel and their families will also not be directly impacted by this liquidation.

I will continue to monitor the situation in our city closely and press the Government to fulfil its duty to the public”.

Labour’s Shadow Cabinet Secretary, John Trickett MP, added:

“The Government must act quickly to bring these public sector contracts back in-house to protect public services and ensure employees, supply chain companies, taxpayers and pension fund members are protected.

Given £2 billion worth of Government contracts were awarded in the time three profit warnings were given by Carillion, a serious investigation needs to be launched into the Government’s handling of this matter.

It is vital that shareholders and creditors are not allowed to walk away with the rewards from profitable contracts while the taxpayer bails out loss-making parts of the business”.