Carillion and Public Sector Outsourcing

Ged Killen Excerpts

Wednesday 24th January 2018 Commons Chamber

[Ged Killen (Rutherglen and Hamilton West) (Lab/Co-op)]

In 2014, Keith Cochrane was appointed to the joint management board of the Scotland Office to advise on strategic and operational issues in that Department and on the efficient delivery of ministerial priorities. As well as that, Mr Cochrane was a member of the Government’s network of non-executive directors. According to media reports, a Government source described Mr Cochrane as having undertaken, since he joined that board and that network,

“a significant programme of engagement with Lead NEDs from across UK Government departments.”

The source also said:

“Since Keith Cochrane’s appointment the visibility of the Non-Executive Board Members has increased considerably, especially across Government.”

Not only was Mr Cochrane a key adviser to the Secretary of State for Scotland and others across Whitehall, but during his three-year term as a management director and non-executive director in Government he was also on Carillion’s board, and he was latterly its chief executive officer. The long and short of it is that Mr Cochrane advised on Government policy while Carillion was being offered large and lucrative contracts in Scotland and throughout the UK. For many at home watching our proceedings, it will look like just another example of the cosy cabal that the Government are routinely guilty of entertaining.

It has been suggested that Mr Cochrane asked the Government to consider a bail-out for Carillion. As a high-level adviser to Ministers and to Whitehall, Mr Cochrane enjoyed premium access that would simply be unavailable to someone from any other company. Small business owners who face lost contracts, unpaid bills and the prospect of having to lay off staff never had the kind of access to or voice at the Government table that Mr Cochrane had. Unlike him, they will not receive £750,000 in pay while their company goes under, or £300 for every high-level meeting with Ministers.

I welcome today’s announcement that Keith Cochrane will step aside temporarily, but will the Minister tell the House whether the Government will renew his membership of the joint management board and the network of non-executive directors when his three-year term expires this year? Will the Government provide details of the number of meetings Mr Cochrane had with Ministers responsible for issuing contracts to Carillion and of whether he ever raised the prospect of a bail-out of Carillion with Ministers or Whitehall officials?