Agenda item

Notice of Motion Regarding "Carillion" - Given by Councillor Lisa Banes and to be Seconded by Councillor Mark Jones

That this Council:-

 

(a)       believes Carillion’s collapse is deeply concerning and that the Government have significant questions to answer as to how this situation was allowed to develop and why they so recently awarded contracts worth billions of taxpayers’ money;

 

(b)       notes that Carillion’s demise will be felt right across the county, but gives reassurances that Sheffield City Council has no contracts for services with Carillion, and that all works under previous construction deals have already been completed;

 

(c)        notes that Carillion employs 250 people in Sheffield at their call centre on Broad Street West, and the Council’s Administration will provide whatever support it can to those affected;

 

(d)       believes that the Carillion case highlights Government negligence and corporate failure and, whilst the government have committed to an investigation, it is essential that this is thorough and of consequence;

 

(e)       notes that on 10 July 2017, Carillion issued its first profit warning, with its share price dropping by 39%, but only one week later the Transport Secretary, the Rt. Hon Chris Grayling MP, awarded Carillion a £1.4 billion HS2 contract as part of a joint venture;

 

(f)        reiterates the Labour Party’s belief that workers should have representatives on company boards, and that had such a policy been in place it would have almost certainly improved the governance of Carillion;

 

(g)       further notes that Carillion has had a long history of involvement in the blacklisting of trade union workers, and reiterates that, whilst under this Administration, this Council has previously passed a motion (November 2012) decreeing blacklisting as an unacceptable practice which cannot be condoned;

 

(h)       supports the Labour Party’s position that the Government need to act quickly to bring Carillion’s public sector contracts back in-house to protect public services and ensure employees, supply-line  businesses, taxpayers and pension fund members are all protected, as the Government cannot outsource its responsibility and duty of care to these workers and vital public sector projects;

 

(i)         notes that this Council Administration has never supported financing through the PFI model when work can be properly done in-house, but under the present Government, and the Coalition government before them, this is often the only means of securing funding to improve and maintain Council services and that organisations are forced to, in the words of the Shadow Chancellor, the Rt. Hon John McDonnell MP, use the “only show in town” as a means of getting required funding from central government;

 

(j)         notes that, where possible, Council services are being brought back in-house, such as housing repairs, human resources, payroll and the 101 telephone service (ran with South Yorkshire Police);

 

(k)        reiterates that a Labour government would review all large government contracts outsourced and that it is vital that shareholders and creditors are not allowed to walk away with the rewards from profitable contracts while the taxpayer bails out loss-making parts of the business; and

 

(l)         supports the Rt.Hon. Jeremy Corbyn MP’s call for Carillion bosses to hand back bonuses recently paid – awarded despite running the Company into debts and liabilities worth £1.5 billion, and in addition, believes this affair is yet more proof that there is need for far greater pay transparency.

 

Minutes:

9.1

It was formally moved by Councillor Lisa Banes, and formally seconded by Councillor Mark Jones, that this Council:-

 

 

 

(a)        believes Carillion’s collapse is deeply concerning and that the Government have significant questions to answer as to how this situation was allowed to develop and why they so recently awarded contracts worth billions of taxpayers’ money;

 

 

 

(b)        notes that Carillion’s demise will be felt right across the county, but gives reassurances that Sheffield City Council has no contracts for services with Carillion, and that all works under previous construction deals have already been completed;

 

 

 

(c)         notes that Carillion employs 250 people in Sheffield at their call centre on Broad Street West, and the Council’s Administration will provide whatever support it can to those affected;

 

 

 

(d)        believes that the Carillion case highlights Government negligence and corporate failure and, whilst the government have committed to an investigation, it is essential that this is thorough and of consequence;

 

 

 

(e)        notes that on 10 July 2017, Carillion issued its first profit warning, with its share price dropping by 39%, but only one week later the Transport Secretary, the Rt. Hon Chris Grayling MP, awarded Carillion a £1.4 billion HS2 contract as part of a joint venture;

 

 

 

(f)        reiterates the Labour Party’s belief that workers should have representatives on company boards, and that had such a policy been in place it would have almost certainly improved the governance of Carillion;

 

 

 

(g)       further notes that Carillion has had a long history of involvement in the blacklisting of trade union workers, and reiterates that, whilst under this Administration, this Council has previously passed a motion (November 2012) decreeing blacklisting as an unacceptable practice which cannot be condoned;

 

 

 

(h)       supports the Labour Party’s position that the Government need to act quickly to bring Carillion’s public sector contracts back in-house to protect public services and ensure employees, supply-line  businesses, taxpayers and pension fund members are all protected, as the Government cannot outsource its responsibility and duty of care to these workers and vital public sector projects;

 

 

 

(i)         notes that this Council Administration has never supported financing through the PFI model when work can be properly done in-house, but under the present Government, and the Coalition government before them, this is often the only means of securing funding to improve and maintain Council services and that organisations are forced to, in the words of the Shadow Chancellor, the Rt. Hon John McDonnell MP, use the “only show in town” as a means of getting required funding from central government;

 

 

 

(j)         notes that, where possible, Council services are being brought back in-house, such as housing repairs, human resources, payroll and the 101 telephone service (ran with South Yorkshire Police);

 

 

 

(k)        reiterates that a Labour government would review all large government contracts outsourced and that it is vital that shareholders and creditors are not allowed to walk away with the rewards from profitable contracts while the taxpayer bails out loss-making parts of the business; and

 

 

 

(l)         supports the Rt. Hon. Jeremy Corbyn MP’s call for Carillion bosses to hand back bonuses recently paid – awarded despite running the Company into debts and liabilities worth £1.5 billion, and in addition, believes this affair is yet more proof that there is need for far greater pay transparency.

 

 

9.2

Whereupon, it was formally moved by Councillor Andrew Sangar, and formally seconded by Councillor Joe Otten, as an amendment, that the Motion now submitted be amended by:-

 

 

 

1.        the replacement, in paragraph (f), of the words “reiterates the Labour Party’s belief” by the words “supports the belief”; and

 

 

 

2.        the deletion of paragraphs (i) to (l) and the addition of new paragraphs (i) to (k) as follows:-

 

 

 

(i)       notes that the UK saw an explosion of PFI contracts being awarded to private companies during the prime ministerships of Tony Blair and Gordon Brown, and further notes that over a third of the Carillion PFI contracts were awarded by the previous Labour government; 

 

 

 

(j)        resolves to support the Rt. Hon. Sir Vince Cable MP’s position that “shareholders and creditors, not taxpayers, should take the financial “hit” of saving struggling construction giant Carillion from collapse”; and

 

 

 

(k)      further notes his call for a National Audit Office investigation and Parliamentary scrutiny by the Public Accounts Committee to understand what led to Carillion’s collapse and why the Government awarded public sector contracts to the Company when they had issued concerning profit warnings.

 

 

9.3

On being put to the vote, the amendment was negatived.

 

 

9.4

The original Motion was then put to the vote and carried as follows:-

 

 

 

RESOLVED: That this Council:-

 

 

(a)      believes Carillion’s collapse is deeply concerning and that the Government have significant questions to answer as to how this situation was allowed to develop and why they so recently awarded contracts worth billions of taxpayers’ money;

 

 

 

(b)      notes that Carillion’s demise will be felt right across the county, but gives reassurances that Sheffield City Council has no contracts for services with Carillion, and that all works under previous construction deals have already been completed;

 

 

 

(c)      notes that Carillion employs 250 people in Sheffield at their call centre on Broad Street West, and the Council’s Administration will provide whatever support it can to those affected;

 

 

 

(d)      believes that the Carillion case highlights Government negligence and corporate failure and, whilst the government have committed to an investigation, it is essential that this is thorough and of consequence;

 

 

 

(e)      notes that on 10 July 2017, Carillion issued its first profit warning, with its share price dropping by 39%, but only one week later the Transport Secretary, the Rt. Hon Chris Grayling MP, awarded Carillion a £1.4 billion HS2 contract as part of a joint venture;

 

 

 

(f)       reiterates the Labour Party’s belief that workers should have representatives on company boards, and that had such a policy been in place it would have almost certainly improved the governance of Carillion;

 

 

 

(g)      further notes that Carillion has had a long history of involvement in the blacklisting of trade union workers, and reiterates that, whilst under this Administration, this Council has previously passed a motion (November 2012) decreeing blacklisting as an unacceptable practice which cannot be condoned;

 

 

 

(h)      supports the Labour Party’s position that the Government need to act quickly to bring Carillion’s public sector contracts back in-house to protect public services and ensure employees, supply-line  businesses, taxpayers and pension fund members are all protected, as the Government cannot outsource its responsibility and duty of care to these workers and vital public sector projects;

 

 

 

(i)       notes that this Council Administration has never supported financing through the PFI model when work can be properly done in-house, but under the present Government, and the Coalition government before them, this is often the only means of securing funding to improve and maintain Council services and that organisations are forced to, in the words of the Shadow Chancellor, the Rt. Hon John McDonnell MP, use the “only show in town” as a means of getting required funding from central government;

 

 

 

(j)       notes that, where possible, Council services are being brought back in-house, such as housing repairs, human resources, payroll and the 101 telephone service (ran with South Yorkshire Police);

 

 

 

(k)      reiterates that a Labour government would review all large government contracts outsourced and that it is vital that shareholders and creditors are not allowed to walk away with the rewards from profitable contracts while the taxpayer bails out loss-making parts of the business; and

 

 

 

(l)       supports the Rt. Hon. Jeremy Corbyn MP’s call for Carillion bosses to hand back bonuses recently paid – awarded despite running the Company into debts and liabilities worth £1.5 billion, and in addition, believes this affair is yet more proof that there is need for far greater pay transparency.

 

 

 

 

9.4.1

(NOTE: 1. Councillors Bob Pullin, Adam Hanrahan, Joe Otten, Colin Ross, Martin Smith, Roger Davison, Sue Alston, Andrew Sangar, Cliff Woodcraft, Ian Auckland, Sue Auckland, Steve Ayris, Gail Smith, David Baker and Vickie Priestley voted for paragraphs (a) to (e) of the Motion, voted against paragraphs (f), (h), (i), (k) and (l) of the Motion, and abstained from voting on paragraphs (g) and (j) of the Motion, and asked for this to be recorded;

 

 

 

2. Councillors Douglas Johnson, Robert Murphy and Alison Teal voted for paragraphs (a) to (h) of the Motion and abstained from voting on paragraphs (i) to (l) of the Motion, and asked for this to be recorded;

 

 

 

3. Councillors Pauline Andrews, Jack Clarkson, Keith Davis and John Booker voted for paragraphs (a) to (e) and (g) to (l) of the Motion and voted against paragraph (f) of the Motion, and asked for this to be recorded; and

 

 

 

4. Councillors Bryan Lodge, Shaffaq Mohammed, having declared Disclosable Pecuniary or Personal Interests in this item of business, did not speak or vote on this item.)