Carillion, which employed 43,000 people to provide services in defence, education, health and transport, collapsed in January, becoming the largest construction bankruptcy in British history. It left creditors and the firm’s pensioners facing steep losses and put thousands of jobs at risk.
A report published by a parliamentary committee said the government’s overriding priority for outsourcing had been spending as little money as possible while forcing contractors to take unacceptable levels of financial risks. It said the preoccupation with costs had hit the quality of public services because the outsourcing companies were sent a clear signal that cost, rather than quality, was the government’s consistent priority.
https://uk.reuters.com/article/uk-carillion-collapse/carillion-collapse-exposed-flaws-in-uk-government-policy-mps-idUKKBN1JZ1HB
A report published by a parliamentary committee said the government’s overriding priority for outsourcing had been spending as little money as possible while forcing contractors to take unacceptable levels of financial risks. It said the preoccupation with costs had hit the quality of public services because the outsourcing companies were sent a clear signal that cost, rather than quality, was the government’s consistent priority.
https://uk.reuters.com/article/uk-carillion-collapse/carillion-collapse-exposed-flaws-in-uk-government-policy-mps-idUKKBN1JZ1HB
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