Martin Vander Weyer Martin Vander Weyer

Carillion’s catastrophe is not a parable of the evils of outsourcing

This is an extract from Martin Vander Weyer’s ‘Any other business’ column in this week’s Spectator. 

Carillion is a disaster on all fronts, but my sympathies go first to the fallen contracting giant’s sub–contractors. Upwards of 30,000 smaller firms were already facing 120-day payment delays and may now have to fight court battles to get paid at all, driving many hard-pressed entrepreneurs to bankruptcy. But the political spotlight won’t help them, because Labour spokesmen who despise small business as well as large will merely use the case to attack the concept of outsourcing public services for private-sector profit.

And that debate will continue to miss the central point that Carillion has not crashed because it held too many school-meal contracts, but because of delays and cost overruns in civil engineering projects such as the Aberdeen bypass and big new hospitals in Birmingham and Liverpool.

Comments

Join the debate for just $5 for 3 months

Be part of the conversation with other Spectator readers by getting your first three months for $5.

Already a subscriber? Log in