Already we have seen leading Civil Servants, such as Sir Jeremy Heywood, leap into action to assure people that the ‘system is robust’ despite all the evidence to the contrary. Political parties have already begun the drawn-out process of finger pointing and blame association. Jeremy Corbyn and his Labour party are calling this as a ‘watershed moment’ in British politics, and calling for an end to the public-private partnership consensus which has dominated since Margaret Thatcher was in office.
The Future of Public-Private Partnerships
18 Jan 18
Plenty has been written about Carillion’s demise, and the fallout is set to intensify in the next few days as the shockwaves ripple through the economy.
Already we have seen leading Civil Servants, such as Sir Jeremy Heywood, leap into action to assure people that the ‘system is robust’ despite all the evidence to the contrary. Political parties have already begun the drawn-out process of finger pointing and blame association. Jeremy Corbyn and his Labour party are calling this as a ‘watershed moment’ in British politics, and calling for an end to the public-private partnership consensus which has dominated since Margaret Thatcher was in office.
Whether or not you agree with the Labour Leader and his views on re-nationalisation, it is clear that there is something wrong with a procurement system which for so long has allowed the same major companies to under-bid each other and then renegotiate once a scheme is underway. For too long the Government has been placing too many eggs in the same basket and now it is time for them to decide whether to heed the warning that Carillion represents or attempt to ride out the storm and carry on as before.
For me, it is the added context of Brexit and the looming decisions about Britain’s future which means that this is a conversation that cannot be put off. Infrastructure investment will be vital in post-Brexit Britain, helping to shore up the country’s economy and create jobs during an inevitably turbulent transition period. However well-intentioned the government may be when making big investment decisions, it will be to no avail if they ultimately end up handing such important contracts to another Carillion.
It is clear that whilst we move towards the Article 50 deadline of March 2019, we should be having a simultaneous discussion to just how these contracts should be awarded – and the Government must look to distribute its hopes much more evenly in future.