Extracts from Cabinet Office questions: Carillion - May 16

T2. One of the most shocking elements of the whole Carillion fiasco was the fact that the Cabinet Office saw a letter from Carillion’s accountants in mid-December with a proposal that would have allowed £360 million extra to be put back into the public purse. Will the Minister explain what he did when he saw that recommendation, and why the money was not put back into public purse?[905331]

As a matter of fact, I took up this office on 8 January 2018. I do not think the picture the hon. Gentleman paints is an accurate one. It was only in January that we were presented with details—full details—of what Carillion proposed. It would have been wrong for the Government to bail it out for private sector failures of judgment.

• Ruth George (High Peak) (Lab)

  T7. Why did the Government continue to award contracts to Carillion after it had announced a profit warning and its shares had fallen by 75%, making it an obvious risk to the public purse? [905336]

• Mr Lidington

  As I set out in detail in my evidence to the Liaison Committee, three of the contracts were actually awarded before the profit warning. The two from HS2 Ltd were part of a joint venture. The other joint venture partners stepped forward, in line with their contracts, to ensure that the project continues with no additional cost to the public purse.