[...]
Key points
The collapse of Carillion, the construction company which was one of the biggest contractors to the British government, provided
Jeremy Corbyn with an open goal at this week’s prime minister’s questions. The Labour leader began by asking why the government had awarded more than £2bn of contracts to Carillion, even after the company had issued three profit warnings and its share price was in freefall.
May replied that if the government pulled out of contracts whenever a profit warning was issued, it would lead to companies failing and jobs being lost. Corbyn retorted that the government had continued to hand the company public contracts, either to keep it afloat or because they were “deeply negligent of the crisis coming down the line”.
PMQs: Corbyn tells May to end 'costly racket' of private firms running public services - Politics live
Read more
To roars from Conservative MPs, May said Corbyn had not asked her a question. He replied that he had asked whether the government had been negligent or not “and they clearly have been”. He added: “Tory MPs might shout but the reality is over 20,000 Carillion workers are very worried about their future.” The government was supposed to protect public money through crown representatives, he said, “so why did the position of crown representative to
Carillion remain vacant during the crucial period of August to November when the share price was in freefall and many people were very worried?”
May responded to a heckle from Emily Thornberry by saying that the shadow foreign secretary had praised Carillion in the past. She said the chief commercial officer took over the crown representative’s responsibilities so it was not the case that no one was looking. “Well they clearly weren’t looking very well,” Corbyn replied.
While Carillion went into liquidation with debts of £1.29bn, he said, they were paying extravagant share dividends and bonuses, and the chief executive will be renumerated for another 10 months. “One rule for the super-rich, another for everybody else.” Can May assure the House that no more money will go to directors, or on bonuses?
May said workers would continue to be paid and that the official receiver was doing his job; where bonus payments were unlawful, they could be recovered. “We were a customer of Carillion, not the manager and that’s a very important difference.” [...]