BusinessBusiness RecoveryEx-Tory minister slams Railtrack saga

Ex-Tory minister slams Railtrack saga

John Redwood, the MP and former Tory department of trade minister, has lambasted the government's handling of the Railtrack administration, claimed it has 'derailed' private finance initiatives.

Writing in this week’s Accountancy Age Redwood said: ‘Anyone contemplating a joint venture or an agreement with the government will now want stronger gurantees.’

He added: ‘Anyone thinking of a venture with the government may well now want bigger upfront payments, or payments in escrow, to protect themselves against a change a change of mind by ministers.’

In other words he predicted a huge effort to shift the burden of risk onto government in PFI deals.

But replying in the same edition John Spellar, minister of state at the department of transport, denied the government forced Railtrack into administration.

‘Railtrack is a company with many excellent and dedicated staff, but also one with many problems. Not least of these is an endemic inability to control costs and manage contracts,’ Spellar said.

Referring to the administration order he said: ‘The court made the order because it agreed with this assessment.’

Links

For & Against: Putting Railtrack into receivership

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

2d Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

2d Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

3w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor