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Keith Vaz Excerpts

Thursday 11th July 2013 Commons Chamber

[Keith Vaz (Leicester East) (Lab)]

This is a shocking statement and I believe that the Lord Chancellor has acted swiftly and decisively in dealing with the issue. G4S should never have got another Government contract after the shambles of the Olympics. G4S and Serco hold 17 contracts worth £118 million with the Home Office, and although I accept what the Lord Chancellor has done in referring G4S to the Serious Fraud Office and the police, I think he should have done the same to Serco. When its chief executive appeared before the Home Affairs Committee on 25 June, he said that he did not believe that Serco had overcharged. The right hon. Gentleman is right to have acted as he did, but he should not take a different approach to Serco. We need the high-risk register that the Home Affairs Committee recommended after the Olympics. That register should be held by the Cabinet Office, and any company that has failed the taxpayer should be on it and should not get another contract.

[Chris Grayling]

Let me be clear about the different treatment of G4S and Serco. I have followed the legal advice I received very closely, and the right hon. Gentleman and all Members of the House would expect me to follow such advice in the interests of the taxpayer and the Government. I have done that, and the approach I have chosen follows closely the legal advice I received. I would not expect any Member of this House to expect me to do otherwise.

As for how the Cabinet Office approaches contracting, my right hon. Friend the Minister for the Cabinet Office, who is sitting next to me, will have heard what the right hon. Gentleman said. The Cabinet Office is taking both this issue and the broader issue of contracting very seriously, and my right hon. Friend will be saying more in due course.