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Interserve: Minister confirms contingency plans

Ministry of Justice minister Lucy Frazer has revealed that the department has contingency plans in place after Labour questioned preparations for the “possibility of the collapse of Interserve”.

Ms Frazer (pictured) was responding to a parliamentary question by shadow justice minister Richard Burgon.

Mr Burgon asked if the MoJ had contingency plans for the “possibility of the collapse of Interserve” following the contractor’s September profit warning.

The justice minister said the department had a “number of arrangements” in place and that contingency plans had been prepared in line with “good contract management” and “standard industry practice”.

Interserve holds a number of different contracts with the MoJ, including facilities management and probation services.

The company, which employs 80,000 staff globally, issued two profit warnings over the space of two months last year.

On Monday a Sky News report claimed accountancy firm Deloitte had been drafted in by the government to advise on its exposure to Interserve in relation to the public sector contracts held by the contractor.

Shortly after Carillion’s collapse the government moved to address fears around Interserve, insisting that none of its suppliers were “in a comparable position to Carillion”.

The MoJ said it was unable to provide further details on its contingency plans as they were commercially sensitive.

Interserve declined to comment.

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