Yorkshire Post

Government ‘behaving badly’ towards outsourcin­g sector

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THE BOSS of outsourcin­g giant Serco has accused the Government of “behaving badly” by passing off unreasonab­le contracts to suppliers, ignoring its own guidelines and shrouding its decisions in secrecy.

In a Commons hearing on lessons learned from the collapse of Carillion, chief executive Rupert Soames told MPs that a raft of “well-run and wellrespec­ted” outsourcer­s have lost vast amounts of money in recent years working on Government contracts with “unmanageab­le amounts of risks”.

Mr Soames – a grandson of Sir Winston Churchill – claimed the Government has previously tried to pass off controvers­ial and “unreasonab­le” contracts to outsourcin­g firms, while also routinely expecting suppliers to shoulder the risk of major law and policy changes.

He said: “It’s not unknown for Government to behave quite badly. It’s a monopoly buyer, it’s also the regulator, the referee and the giver-out of business.”

He said the recent woes in the outsourcin­g sector, which led to the collapse of Carillion and forced a number of its rivals to raise emergency capital to bolster their finances, was “astonishin­g”.

“It’s been a massive, massive disruption in the supplier sector, the likes of which I’ve never seen – £8bn written off of the supplier sector and billions of pounds being raised to recapitali­se.” He added: “A lot of this is management’s fault, but ... the Government as a monopoly buyer cannot stand idly by and say ‘nothing to do with me, Guv’.”

“There’s a very good PIN (prior informatio­n notice) saying how department­s should behave and what’s reasonable to ask firms to do and it is widely ignored among department­s,” he said.

The Government process for deciding when to outsource and its decisions on contract bids are also “shrouded in opaqueness”, but should be transparen­t and audited by the National Audit Office, he added.

Mitie chief executive Phil Bentley, who was also giving evidence in the hearing, told MPs on the Public Administra­tion and Constituti­onal Affairs Committee that he believed inaccurate data was also to blame for some failed outsourced contracts and called for greater data sharing and transparen­cy.

It emerged yesterday that more jobs have been lost following the collapse of engineerin­g giant Carillion, taking the total to almost 2,300.

The Government as a monopoly buyer cannot stand idly by. Serco chief executive Rupert Soames.

 ??  ?? RUPERT SOAMES: Serco chief said billions of pounds had been written off the supplier sector.
RUPERT SOAMES: Serco chief said billions of pounds had been written off the supplier sector.

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