Welcoming the National Audit Office’s investigation into the rescue of Carillion’s PFI hospital contracts, Dr Joshua Pritchard, Reform procurement and outsourcing lead, said:
“Instead of the taxpayer forking up for the failures of badly-run companies like Carillion, Government has finally proven that it is capable of holding its suppliers to account when they don’t perform.
“However, costs were still allowed to spiral out of control, with an additional £687 million added to the total bill since the PFI contracts were signed – an increase of 98 per cent. This is yet another example of the consequences of poor government procurement.
“Outsourcing is essential for delivering public services, but only when it works well. Government needs to be a better customer, and industry needs to be a better client.”
Covered in The Times.