Tory Cabinet Office minister David Lidington has tried to excuse the government’s failure to stop awarding huge contracts to collapsing company Carillion by claiming that tendering rules prevented Carillion’s dire financial circumstances into account.
Lidington said the government kept giving contracts to Carillion because of
rules on the type of information that you can take into account when taking those decisions.
Journalist Paul Mason spotted Lidington’s excuse and was quick to point out that this is a symptom of what the left has been pointing out for a long time:
Labour front-bencher Clive Lewis drew attention to the inevitable human cost, as well as to the significance of Carillion’s collapse to the political and economic landscape:
The impact of the collapse will reverberate through every part of our economy. As well as construction, Carillion also managed many projects in the NHS, education and other vital parts of the fabric of our society – and its failure to pay its suppliers will cost jobs in other companies and sectors.
A private company running public projects collapses – not long after paying its executives huge bonuses – with massive human and economic cost and the tax-payer carries the cost. Again.
Could anything more clearly portray the madness of letting private companies into public projects to take out profits that could be paying for wages and services?
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