Carillion collapse: Corbyn ally Peter Dowd tears into Government for ignoring profit warnings

Carillion has a raft of government contracts on its books

Carillion has a raft of government contracts on its books

Thursday, January 18, 2018

Corbynista Peter Dowd has ripped into the Carillion debacle on talkRADIO this morning, saying Britain needs to learn the lessons from this mess.

Carillion has entered liquidation, having signed a raft of contracts with the Government. The issue continues to dominate the news agenda and was front-and-centre of Prime Minister's Questions yesterday (Wednesday January 18).

Dowd, the MP for Bootle and shadow chief secretary to the treasury, said we need to get away from a mentality which insists "public bad, private good, regardless of the circumstances."

He also said it was ridiculous that the Government continued to give Carillion contracts despite a series of profit warnings - prompting Julia to point out that several other companies, including Tesco, have faced warnings of this type.

Turning to the wider issue of the Private Finance Initative (PFI) championed by Tony Blair during his time in office, Dowd said he and Labour wouldn't allow such projects were they in government.

He also said he would bring the existing contracts "back in" - prompting a rather surprised response from Julia.

Listen above.