John Spellar

Labour MP for Warley

  • Home /
  • Latest News / Black Country MP urges Government to “get a grip” of companies with high-debt business models

Black Country MP urges Government to “get a grip” of companies with high-debt business models

Today in Westminster, Black Country MP and former Defence Minister John Spellar urged the Government to get a grip to ensure no taxpayer money is wasted on bailing out contracts and companies whose business model is based on high-debt and maximising dividends for shareholders.

Responding to an Urgent Question in the House of Commons on the financial concerns at outsourcing firm Capita, Mr Spellar slammed the company’s “lamentable performance on their recruitment contract for the Armed Services”.

This followed an article written by Mr Spellar for LabourList in which he called on the Government to learn the lesson from the collapse of Carillion, writing that it was now important to “empower regulators to ensure that companies providing services do not collapse in a manner such as Carillion – this measure would not only save the taxpayer money, but also allow smaller businesses who operate a sustainable model to compete for contracts.”

Adding that: “How is it right that the state has to foot the bill every time the companies mess up and they are unable to provide the basic services they were contracted to do.”

Reactions

Please check your e-mail for a link to activate your account.

The Labour Party will place cookies on your computer to help us make this website better.

Please read this to review the updates about which cookies we use and what information we collect on our site.

To find out more about these cookies, see our privacy notice. Use of this site confirms your acceptance of these cookies.