MPs question truth of evidence heard from Balfour Beatty, Sir Robert McAlpine and Skanska

The committee of MPs investigating construction industry blacklisting will consider whether the firms involved should be barred from bidding for public sector work, after publishing a damning report this week.

The interim report of the Scottish Affairs select committee鈥檚 inquiry into blacklisting, published on Tuesday (16 April), questioned the evidence it heard under oath from representatives of three of the major contractors involved - Balfour Beatty, Sir Robert McAlpine and Skanska.

The report said the committee intends to continue with its inquiry, calling other firms to give evidence and examining areas including whether blacklisting is continuing, what level of compensation should be provided to victims, what punishment should be imposed on firms involved - including a possible bar to public sector contracts - and whether changes to the law are still required (see box).

The report said the committee was 鈥渦nconvinced鈥 that Balfour Beatty regretted its involvement with The Consulting Association (TCA), the blacklisting firm exposed and closed down in 2009.

It also said it was concerned by the failure of firms including Balfour Beatty and Skanska 鈥渢o hold any individual to account鈥 for wrongdoing and said it was not persuaded by Sir Robert McAlpine director Cullum McAlpine鈥檚 claim that he had a 鈥渉ands off鈥 role as the founding chairman of TCA.

It also criticised the 鈥渆vasive wordplay鈥 of the argument made by witnesses, including McAlpine, that because not everyone on TCA鈥檚 database was refused employment, the files did not constitute a blacklist.

The report follows evidence given to the committee in recent months by a number of witnesses including Cullum McAlpine, Balfour Beatty UK Construction Services chief executive Mike Peasland and Harvey Francis, executive vice president of human resources at Skanska. The report said that the committee was 鈥渇ar from certain that all of our witnesses have told us 鈥榯he truth, the whole truth and nothing but the truth鈥, despite many of them being under oath鈥.

Committee chairman Ian Davidson MP, said he was 鈥渁ppalled鈥 by what the committee had heard. 鈥淭CA was an organised conspiracy by big construction firms, to discriminate against workers who raised legitimate grievances over health and safety and other industrial issues,鈥 he said.

A Balfour Beatty spokesperson said the firm had expressed its 鈥済enuine regret鈥 over its use of TCA and had taken action 鈥渢o ensure it does not happen again鈥.

A spokesperson for Skanska said it welcomed the committee鈥檚 report and said it had made 鈥渇undamental changes鈥 to its working practices and culture since 2009.

A spokesperson for Sir Robert McAlpine said it had 鈥渘ever operated a blacklist,鈥 adding that it had 鈥渁lways been wholly committed to maintaining good relationships with our workforce and to responsible trade unionism鈥.

Blacklist fact box

 

Reactions to the select committee鈥檚 report

Vince Cable, business secretary:

鈥淏lacklisting is an appalling and illegal practice. We will look carefully at the committee鈥檚 final recommendations [鈥 and if there is new evidence that blacklisting is continuing, I will ask the appropriate authorities to carry out a full and thorough investigation.鈥


Shadow business secretary



Chuka Umunna, shadow business secretary:

鈥淢inisters have indicated that they will investigate blacklisting if new evidence emerges. In light of the committee鈥檚 report, we would urge a proactive approach from government, including into examining allegations that blacklisting was used on major public construction projects.鈥


Len McCluskey



Len McCluskey, general secretary, Unite:

鈥淭he committee has done very important work when others looked away. I am calling on it to demand answers from the board of Crossrail, senior management at TfL and key decision makers employed by construction companies awarded contracts by Crossrail such as Royal Bam and Kier.鈥  

Paul Kenny



Paul Kenny, general secretary, GMB:

鈥淲hat we see here in the plain light of day are major construction companies involved in shifty, unethical, dishonest practices for which they seem totally unable to apologise and take responsibility. They have yet to compensate a single person they damaged.鈥