Asked by: Lord Bassam of Brighton (Labour - Life peer)
Question to the Cabinet Office:
To ask Her Majesty's Government what was the membership of the Cabinet sub-Committee that discussed the hostile environment policy for illegal immigrants; and what conclusions that sub-Committee came to on the likely impact of that policy.
Answered by Lord Young of Cookham
Information relating to the proceedings of Cabinet Committees, including when and how often they meet, is not disclosed as to do so could harm the frankness and candour of internal discussion. A full list of the Cabinet Committees and Implementation Task Forces, with their membership and terms of reference, can be found on the Cabinet Office's webpage attached.
Asked by: Lord Bassam of Brighton (Labour - Life peer)
Question to the Cabinet Office:
To ask Her Majesty's Government who in the ministerial team in the Cabinet Office was responsible for oversight of Her Majesty's Government’s Carillion contracts; whether proposals were presented by Ernst and Young to the Cabinet Office in December 2017; if so, what were those proposals; what assessment they made of the extent to which any such proposals might have saved public funds, protected employee pensions and avoided the company becoming bankrupt; whether they decided not to proceed with those proposals; and if so, at what level that decision was made.
Answered by Lord Young of Cookham
The Minister for Government Resilience and Efficiency (until 8 January 2018) and the Minister for Implementation (since 9 January) have had Ministerial responsibility for public procurement policy, including the strategic supplier risk management policy, but the responsibility for overseeing individual contracts with Carillion rests with individual contracting authorities.
In July 2017, Carillion engaged EY to assist with its restructuring plans. Government was not a party to this arrangement but we understand that EY’s recommendations were considered by Carillion’s board on 19 December.
The proposals from EY were put before the directors of Carillion, for their consideration and for them to act on accordingly, in line with their director duties. EY did not present this information to HMG. We were privy to the contents of the report after it had been presented to the Carillion Board, which enabled us to prepare for the various scenarios facing Carillion.
The decisions and conduct of the management of the company will be investigated by the Official Receiver.
Asked by: Lord Bassam of Brighton (Labour - Life peer)
Question to the Cabinet Office:
To ask Her Majesty's Government when Ministers first met with representatives of Carillion to discuss the implications of that company's financial position.
Answered by Lord Young of Cookham
Departmental officials meet strategic suppliers to Government on a regular and ongoing basis. In respect of ministerial meetings, in October 2017 the then Parliamentary Under Secretary of State at the Ministry of Justice met representatives of Carillion to discuss justice-related contracts during which the company’s financial position was discussed among other issues.
As a routine, departments publish quarterly details of Ministers’ meetings with external organisations on GOV.UK, including those with representatives from companies such as Carillion. Cabinet Office returns can be viewed using the following link: https://www.gov.uk/government/collections/ministers-transparency-publications
Asked by: Lord Bassam of Brighton (Labour - Life peer)
Question to the Cabinet Office:
To ask Her Majesty's Government what risk assessments they have carried out in the last five years of Capita and other companies to which public services provision has been outsourced; and which contracts relating to Capita are being reviewed or risk assessed.
Answered by Lord Young of Cookham
We recognise the importance of managing relationships with Strategic Suppliers, including any risks to the operation of public services and the achievement of value for money for the taxpayer. Our Strategic Supplier Risk Management Policy has been attached.
Asked by: Lord Bassam of Brighton (Labour - Life peer)
Question to the Cabinet Office:
To ask Her Majesty's Government, further to the Written Answer by Lord Young of Cookham on 25 January (HL4735), which Carillion contracts encountered problems with continuity and mitigation for service failures; and what estimate they have made of the additional and continuity costs to Her Majesty's Government.
Answered by Lord Young of Cookham
Public sector services contracts have maintained continuity without any significant disruption. Construction contracts have had to be made safe and secure and new contractors will be appointed as soon as possible to continue the works. Public sector bodies will continue to pay for the cost of the services that Carillion were providing as they usually would have done to Carillion. HMT have provided working capital to the Official Receiver in order for him to continue to run the public sector services provided by Carillion. Any proceeds from the sales of assets will offset these costs therefore the full cost is not yet known.
Asked by: Lord Bassam of Brighton (Labour - Life peer)
Question to the Cabinet Office:
To ask Her Majesty's Government further to the Written Answer by Lord Young of Cookham on 25 January (HL4734), which Carillion contracts had a contingency plan put in place; what were the dates when such contingency plans became operable; what was the additional cost to Her Majesty's Government of each contingency plan; and which contracts did not execute a contingency plan.
Answered by Lord Young of Cookham
The continuation of public services has and continues to be our primary focus. To that end, robust contingency plans have been developed by departments as part of routine contract management. Contingency plans for Carillion contracts were enacted once the decision was taken by the company to enter insolvency on 15 January.
Project-level costs are not held centrally, but HM Treasury announced that it was providing £154m to the Official Receiver. It is too early to assess what the final financial position will be.
Asked by: Lord Bassam of Brighton (Labour - Life peer)
Question to the Cabinet Office:
To ask Her Majesty's Government, further to the Written Answer by Lord Young of Cookham on 25 January (HL4735), which Carillion contracts have had work suspended while an alternative provider contractor is found.
Answered by Lord Young of Cookham
The Official Receiver is conducting an orderly liquidation of the company. Our priority is the continuity of public services. Of the private sector service contracts, 90% of these services customers have indicated that they want Carillion to continue providing services in the interim until new suppliers can be found and will provide funding which enables the Official Receiver to retain the employees working on those contracts.