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Woodford: MPs response to G4S has put UK recovery at risk

Neil Woodford 480

Invesco Perpetual income guru Neil Woodford has hit out at MPs for their reaction to the G4S Olympic security debacle, claiming their response has put the UK recovery at risk.

Woodford, who owns approximately 5 per cent of G4S shares, said the treatment of chief executive Nick Buckles at last month’s home affairs select committee was like watching “a medieval persecution”, adding that the whole shambles put the economy at risk by discouraging businesses to come to the UK.

He said: “If this is the way Parliament wants to treat business, please Parliament, don’t be surprised when businesses decide this isn’t the country for them.”

Woodford (pictured), who manages the £12bn Invesco Perpetual High Income and £9.3bn Invesco Perpetual Income funds, said the behaviour of the MPs was “incredibly damaging for the economy and for this country”.

According to The Telegraph, he said: “It’s more broadly important because it sets a terrible precedent. Chief executives will have watched that hearing with horror. It’s disgraceful and very damaging. Companies will be thinking twice about bidding for any government work.”

This morning G4S revealed that its contract to provide security for the London 2012 Olympic Games has cost it £50m. The firm’s share price was down 1.8 per cent in early trades.


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. For once I think Mr Woodford is talking rubbish and just trying to protect the value of one of his larger investments.
    G4S got exactly what they deserved and I for one hope that the other large players who have been making monkeys out of successive governments begin to feel the consequenses of rip-off and even then usually subsequently revised upward bids for government contracts.
    Are you listening Mr Branson?

  2. Terry Mullender 28th August 2012 at 1:15 pm

    I agree with John Lacy.

    The whole point of the Parliamentary Select Committee process is to hold high ranking business individuals to account to the people of this country.

    If individuals controlling large companies don’t want to be held accountable for their performance, when taxpayers money is being spent then don’t do business in the UK!

    We have standards in this country which must not be influenced by money, no matter how much of it there may be Mr Woodford.

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