Cheapest bid first 'putting services at risk'

 

MPs investigating the Carillion insolvency have blasted the Government for putting public services at risk.

In the final report of their inquiry, the Work and Pensions and Business, Energy and Industrial Strategy select committees concluded that the Government’s austerity-led approach to procurement – and, by implication, also the funding of local authorities – had a part to play in the 'catastrophic crash'.

”Local

The committees accused the Government of ‘nurturing a business environment and pursuing a model of service delivery which made such a collapse … a distinct possibility’.

In their report, the MPs write: ‘The Government’s drive for cost savings can itself come at a price: the cheapest bid is not always the best.

'Yet companies have danced to the Government’s tune, focussing on delivering on price, not service, volume, not value.’

MPs’ anger also focused on the largest auditing firms for their failure to spot the danger signs in Carillion’s accounts and business model, and the auditors’ regulators for their failure to adequately police them.

The MPs’ report say these combined elements allowed Carillion to become a ‘giant and unsustainable corporate time bomb,’ adding: ‘The mystery is not that it collapsed, but that it lasted so long.’

They continue: ‘In these circumstances, when swathes of public services are affected … we have a semi-professional part-time system that does not provide the necessary degree of insight for Government to manage risks around service provision … the consequences of this are clear.’

Carillion provided councils with everything from facilities management to cleaning and catering, leaving a number of local authorities paying 20% more to cover the delivery of contracts left unmanned by the company.

This story first appeared on themj.co.uk.

 

Also see

Register now for full access


Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login

 
comments powered by Disqus
 
 
highways jobs

Transport Planning Officer x 2

Plymouth City Council
£32,233 to £41,846
Exciting time to join the Council and this role represents an opportunity to make a real difference... Plympton, Plymouth
Recuriter: Plymouth City Council

Business Manager - Planning Development

Newark & Sherwood District Council
£52,004 to £55,188 per annum
Looking for a suitably qualified and experienced individual to lead, manage, and develop the Council’s Development Management team. Newark, Nottinghamshire
Recuriter: Newark & Sherwood District Council

HGV Driver/Loader (Waste Management)

Torridge District Council
£22,021—£23,836 per annum (FROM 1 APRIL 2019)
Driving & loading a refuse/recycling collection vehicle up to 26 tonne gross weight, collecting recycling or household waste throughout Torridge Bideford, Devon
Recuriter: Torridge District Council

Director of Highways and Transport

Lancashire County Council
c£100k
We are looking for a passionate and energetic leader to deliver a range of ambitious and major projects. Lancaster, Lancashire
Recuriter: Lancashire County Council

Director of Growth, Environment & Planning

Lancashire County Council
c£100k
Our new Director will help us to develop a strong corporate vision, strategy and robust operations to service. Lancaster, Lancashire
Recuriter: Lancashire County Council

Head of Highways and Network Operation

Blackburn with Darwen Borough Council
£55,537 to £59,663
We are looking for an experienced transport professional with an excellent grounding in Highways and transport operations. Blackburn, Lancashire
Recuriter: Blackburn with Darwen Borough Council

Engineer Maintenance

Liverpool City Council
£32,233 - £37,107
Liverpool City Council are looking to recruit an Engineer Maintenance. Liverpool, Merseyside
Recuriter: Liverpool City Council

Site Supervisor

Liverpool City Council
£32,233 - £37,107
Liverpool City Council wish to appoint Site Supervisors to supervise the City Council's highway construction works. Liverpool, Merseyside
Recuriter: Liverpool City Council

Permit Officer

Liverpool City Council
£23,111 - £27,358
Liverpool City Council are looking to recruit a Permit Officer. Liverpool, Merseyside
Recuriter: Liverpool City Council

Contracts Manager

Liverpool City Council
£37,107 - £41,846
Liverpool City Council wish to recruit a Contracts Manager based in Highways & Transportation. Liverpool, Merseyside
Recuriter: Liverpool City Council

Principal Engineer - Asset Management

Liverpool City Council
£37,107 - £41,846
Liverpool City Council wish to recruit a Principal Engineer - Asset Management. Liverpool, Merseyside
Recuriter: Liverpool City Council

Highways Inspector

Liverpool City Council
£32,233 - £37,107
We are seeking to recruit an enthusiastic individual to be a key member of our Highways Team. Liverpool, Merseyside
Recuriter: Liverpool City Council

Engineer - Capital Projects

Liverpool City Council
£32,233 - £37,107
Liverpool City Council is looking to recruit an Engineer - Capital Projects. Liverpool, Merseyside
Recuriter: Liverpool City Council

Engineer - Highways Capital Projects (S106)

Liverpool City Council
£32,233 - £37,107
Liverpool City Council wish to recruit an Engineer (Capital Projects). Liverpool, Merseyside
Recuriter: Liverpool City Council

Team Leader - Asset Management

Liverpool City Council
£41,846 - £46,560
Liverpool City Council wish to recruit a Team Leader - Asset Management. Liverpool, Merseyside
Recuriter: Liverpool City Council

Technical Assistant

Liverpool City Council
£23,111 - £27,358
Liverpool City Council are looking to recruit a Technical Assistant. Liverpool, Merseyside
Recuriter: Liverpool City Council

Waste and Recycling Engagement Officer

Camden London Borough Council
£24,460 - £26,358
We now have an exciting opportunity for a talented and enthusiastic individual to join us and be part of the North London Waste Authority (NLWA). Camden, London (Greater)
Recuriter: Camden London Borough Council

Major Transport & Development Projects - Strategic Specialist

Wiltshire Council
£51,763 - £57,066
Wiltshire has a highly regarded record of securing funding and delivering major transport improvements across all modes of travel. Wiltshire
Recuriter: Wiltshire Council

Assistant Director - Growth and Development

Lincoln City Council
£59,058.00 - £65,127.00
Looking for an experienced manager with a good track record in proactively driving economic growth and investment. Lincoln, Lincolnshire
Recuriter: Lincoln City Council

Assistant Director – Transport and Connectivity

Birmingham City Council
£73,513 - £90,864
This is one of a number of influential new senior roles for collaborative people, motivated by doing what’s right for our city and residents. Birmingham, West Midlands
Recuriter: Birmingham City Council