George Osborne Lies about Responsibility for the Collapse of Carillion

No, not Marillion, who had a hit in the 1980s with the classic, ‘Kayleigh’, and whose singer was called Fish, ’cause he drank like one, but Carillion, the outsourcing giant which has gone belly-up.

Mike’s put up a post about Carillion’s collapse, pointing out that the company was in dire financial trouble, and had issued at least three profit warnings. But miraculously it was still able to win government contracts.

George Osborne, our former comedy Chancellor to Dave Cameron’s comedy Prime Minister, decided to put his oar in today. Faced with the question of who was responsible for awarding these contracts to the ailing company, Osborne did what every Tory does: he lied and spun. Oh no, whined Osborne, now the editor of the Evening Standard, it’s not the Tories’ responsibility they got government contracts. It’s all the fault of civil servants.

Er, no, George. It’s not. It’s your fault, and the fault of every Thatcherite government since the days of John Major.

If you enter the civil service, you will be told that it is your duty to provide the government with impartial advice. This marks the British civil service out from its continental cousins, where the upper levels of the civil service belong to the ruling party, and so change with each election. There have been cases when the civil service has been less than impartial, such as when the rail network was privatised. This was the brainchild of a particular civil servant, who was a keen promoter of free market private enterprise. But this particular mandarin has been and gone.

Looking back, a scandal like Carillion was almost inevitable. When outsourcing began in the 1990s under John Major, firms like Capita, dubbed ‘Crapita’ by Private Eye, became notorious for the way they continually got government contracts, despite coming in late and over budget on just about all those they had been awarded. Or else the systems they installed just didn’t work. But it was Tory – and Blairite – ideology that private enterprise was always better than the state, even when, to most people, it most certainly wasn’t. And there was a revolving door between these firms and the Tory party. Under John Major, the various ministers responsible for privatising particular firms magically got jobs on the board of the same, now private companies, afterwards. Amazing! But civil servants weren’t to blame for that, although certain high level civil servants did benefit from the revolving door, particularly and most notoriously in the MOD. The system got so bad that John Major’s government got a justifiable reputation for ‘sleaze’. But a French politician was much more accurate in his description of it. He said that in Britain, we called it ‘sleaze’, but in La Patrie, they simply called it ‘corruption’. Indeed. Over the other side of La Manche, a civil servant or politician has to wait two years after they’ve retired from office before they can take up a job with a private firm. Which means that their address book, which is what the firm really wants, is out of date, and they’re of no value to them. Problem solved.

Carillion was allowed to go on because of a series of legislation put in place by the Tories to protect the outsourcing companies. Like as private companies, they are not subject to FOIA, and any attempts to probe their financial affairs is automatically denied by the government on the grounds of ‘corporate confidentiality’. You see, such requests would jeopardise their position by opening them up to scrutiny by their rivals. We’ve seen this used when justifying giving contracts to private firms in the NHS. NHS performance is published and scrutinised, but not those of the private firms angling for lucrative NHS contracts.

This has been brought in by the Tories, including Dave Cameron and George Osborne.

And while we’re at it, let’s make the point that much government advice doesn’t come from the civil service. It came from private consultants, like Anderson Consulting, who were responsible for turning the Benefits Agency as was into the shambles it now is. Under Tony Blair this grew to enormous proportions, so that Blair was taking advice from SPADs -Special Advisors – from private industry, rather than the civil service.

So it’s fair to ask which set of private consultants argued that Carillion ought to be given a contract? Perhaps no-one did, but I think it’s a fair question, given just how much sponsorship the Tories received from private industry. Was Carillion one of their corporate donors?

So who’s responsible for the government awards given to Carillion? You are, George. You, Cameron, and your whole disgusting party. Now stop lying. You were rubbish as chancellor, and you’ve got no business editing a paper either.

Advertisements

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: