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London 2012: G4S's Nick Buckles regrets taking contract London 2012: G4S's Nick Buckles regrets taking contract
(about 1 hour later)
The head of security company G4S has said he regrets it ever took on the Olympic security contract, as he agreed it had been a "humiliating shambles". The head of security company G4S has said he regrets it ever took on the Olympic security contract, as he agreed it had become a "humiliating shambles".
The company may lose £50m from the £284m contract because it cannot supply enough guards. The company may lose £50m from the £284m contract because it cannot supply enough security guards.
Chief executive Nick Buckles said the police and the military would be reimbursed for providing personnel to plug the shortfall. Chief executive Nick Buckles told MPs that the military and the police would be reimbursed for providing personnel to plug the shortfall.
But Mr Buckles said it still planned to keep its £57m management fee. But he said G4S planned to keep its £57m management fee.
The G4S CEO said that because the firm expected "to deliver a significant amount of staff" it would retain the fee. Mr Buckles said that because the firm expected "to deliver a significant amount of staff" it would retain the fee.
"I find that astonishing," the committee's chairman, Labour MP Keith Vaz, replied. "I find that astonishing," replied Labour MP Keith Vaz, who chairs the Commons home affairs select committee that called Mr Buckles to give
Troops deploy Mr Buckles also told the committee the cost of accommodation for military personnel called in to help would be covered and bonuses would be paid to them if this was deemed appropriate.
Mr Buckles also told the committee the cost of accommodation for troops would also be covered and bonuses would be paid to military personnel if this was deemed appropriate. G4S has been under fire since it emerged last week that 3,500 extra military personnel have had to be deployed to meet the firm's shortfall in trained security guards for the Games. Police have also helped fill gaps left by G4S.
He made the comments after 3,500 extra troops had to be deployed to meet the firm's shortfall. Police have also helped fill gaps left by G4S. Ministers insist the security of the Games will not be compromised.
Ministers say the security of the Games will not be compromised despite the shortfall.
A spokesman for Prime Minister David Cameron said: "We need to focus on working with G4S to ensure a safe and secure Games. We have confidence we have plans to deliver a secure Olympics."A spokesman for Prime Minister David Cameron said: "We need to focus on working with G4S to ensure a safe and secure Games. We have confidence we have plans to deliver a secure Olympics."
Culture Secretary Jeremy Hunt told the BBC there would be a post-mortem over how G4S had managed the contract.Culture Secretary Jeremy Hunt told the BBC there would be a post-mortem over how G4S had managed the contract.
"The government will drive a very hard bargain because we feel very disappointed in what happened," he said. "The government will drive a very hard bargain [over its payments] because we feel very disappointed in what happened," he said.
But he added: "We don't want to go into a big blame game right now, 10 days before the opening ceremony."But he added: "We don't want to go into a big blame game right now, 10 days before the opening ceremony."
He said that he was confident G4S, with the help of the police and armed forces, would keep the Games safe. He said that he was confident that G4S, with the help of the police and armed forces, would keep the Games safe.
It has emerged West Midlands, West Mercia, Staffordshire and Warwickshire police have been asked to provide 380 officers a day to guard two venues used for Olympic football matches. Meanwhile, it has emerged that West Midlands, West Mercia, Staffordshire and Warwickshire police have been asked to provide 380 officers a day to guard two venues used during the Olympics football tournament.
Chris Jones, secretary of the West Midlands Police Federation, told the BBC that guarding the Ricoh Arena in Coventry and the Chesford Grange Hotel near Kenilworth would severely stretch police resources. 'Streets safe'
'Very sorry' Chris Jones, secretary of the West Midlands Police Federation, told the BBC that guarding the Ricoh Arena, in Coventry, and the Chesford Grange Hotel, near Kenilworth, would severely stretch police resources.
During the committee hearing, Labour's David Winnick told the chief executive: "It's a humiliating shambles, Mr Buckles." But a statement on behalf of all four police forces said: "As part of our planning for the Games, we have been sure to build contingency and resilience into our resourcing and we have the capacity to meet this task and we will not compromise on keeping the streets and our local communities safe."
"I cannot disagree with you," Mr Buckles replied. There have been a number of developments as preparations for the Games continue:
The chief executive told MPs he was "very sorry" for what had happened.
When asked why he was still in the post, Mr Buckles said: "It's not about me; it's about delivering the contract. I'm the right person to ensure that happens." Earlier, during the committee hearing, Labour's David Winnick told the G4S chief executive: "It's a humiliating shambles, Mr Buckles."
Nick Buckles went to Parliament to say sorry and to save his company.Nick Buckles went to Parliament to say sorry and to save his company.
He ended up agreeing that it had been "humiliating". He also opened the cheque book; he promised to pay for any additional costs incurred by the police who've had to plug gaps and he agreed to consider paying bonuses for the 3,500 soldiers drafted in.He ended up agreeing that it had been "humiliating". He also opened the cheque book; he promised to pay for any additional costs incurred by the police who've had to plug gaps and he agreed to consider paying bonuses for the 3,500 soldiers drafted in.
One Liberal Democrat on the committee told me he thought the scale of financial offers was "amazing". (But, remember, Mr Buckles went to save his company.)One Liberal Democrat on the committee told me he thought the scale of financial offers was "amazing". (But, remember, Mr Buckles went to save his company.)
Another MP on the committee told the BBC he couldn't believe the G4S chief executive "didn't fight back" under questioning.Another MP on the committee told the BBC he couldn't believe the G4S chief executive "didn't fight back" under questioning.
The strategy was clearly to be contrite and try to make the best out of a very bad situation. (Remember, Mr Buckles went to save his company.)The strategy was clearly to be contrite and try to make the best out of a very bad situation. (Remember, Mr Buckles went to save his company.)
There was one exception to that though; the management fee. G4S still wants its £57m slice. In terms of reputational management, that will be an interesting one.There was one exception to that though; the management fee. G4S still wants its £57m slice. In terms of reputational management, that will be an interesting one.
The G4S boss said he was told about recruitment problems by his team on 3 July. "I cannot disagree with you," Mr Buckles replied.
He said it was difficult as the numbers changed on a daily basis but as they "dug into data day by day we realised the pipeline and people we thought we could deliver, we couldn't". He told MPs he was "very sorry" for what had happened.
Mr Buckles said he was "shocked" to find this out and returned immediately from a holiday in the US. When asked why he was still in the post, Mr Buckles said: "It's not about me; it's about delivering the contract. I'm the right person to ensure that happens."
The G4S boss said he had been told about recruitment problems by his team on 3 July.
He said as they "dug into data day by day we realised the pipeline and people we thought we could deliver, we couldn't".
Mr Buckles said he had been "shocked" to find this out and returned immediately from a holiday in the US.
He said it was on 11 July that he realised the contract would not be delivered - the same day Home Secretary Theresa May says she was informed of the problems.He said it was on 11 July that he realised the contract would not be delivered - the same day Home Secretary Theresa May says she was informed of the problems.
G4S had been contracted to supply about 10,000 members of staff.G4S had been contracted to supply about 10,000 members of staff.
Mr Buckles told MPs his company had about 4,200 people "working on the ground" and expected that at least 7,000 people would be in place for the Games. Mr Buckles told the MPs his company had about 4,200 people "working on the ground" and expected that at least 7,000 people would be in place for the Games.
"Clearly we regret signing it [the contract] but now we have got to get on and deliver it," he said."Clearly we regret signing it [the contract] but now we have got to get on and deliver it," he said.
G4S, by its own admission, stands to lose up to £50m on the contract, worth a total of about £280m, after being unable to provide the staff it had been contracted to deliver. He said that the contract had initially been more about the company building its reputation than the financial aspect.
Mr Buckles said the company was no longer bidding for the security contracts for the next football World Cup and the next Olympics, both of which take place in Brazil. He said the decision had been taken last week.Mr Buckles said the company was no longer bidding for the security contracts for the next football World Cup and the next Olympics, both of which take place in Brazil. He said the decision had been taken last week.
There have been a number of developments as preparations for the Games continue:
In the latest flashpoint involving G4S, the BBC understands only 20 members of its security staff from 300 originally contracted have turned up for various Olympic duties in Surrey.
Their tasks include guarding ticketed venues at Box Hill, where thousands are expected to watch cyclist Mark Cavendish go for Britain's first gold medal on Saturday 28 July.
However, G4S said it had "many more than 20" members of staff there.
Home Secretary Theresa May told the Commons on Monday that G4S had "repeatedly" promised they would exceed targets.
The Ministry of Defence has confirmed army officials have met G4S over security.
Police, meanwhile, have had to deploy extra officers at short notice from eight UK forces to do Olympic security work after the company's staff failed to turn up to venues.
G4S said security was tightened at venues before staff were assigned but that this was being rectified over the "coming days" and should lead to the withdrawal of police from roles assigned to private security.
Will you be working with G4S on Olympic security? Did you apply for a job with G4S? Please send us your comments and experiences using the form below.Will you be working with G4S on Olympic security? Did you apply for a job with G4S? Please send us your comments and experiences using the form below.