G4S will face 'consequences', says Cameron

G4S security firm facing 'consequences' for failing contract. Photo: Anthony Devlin/PA Wire

It would be quite extraordinary if the contracts with the security firm G4S did not have a penalty clause for failing to provide the staff it had promised.

David Cameron has confirmed today that there would be "consequences" for the firm - after their failure forced the Ministry of Defence to provide 3,500 additional military personnel.

The Prime Minister also said, "if companies don't deliver on their contracts then they should be pursued for that money."

It follows concerns that the contract between G4S and LOCOG, the Olympic Games organising committee, may not be watertight enough although the Home office has confirmed that government lawyers did oversee the contract and that there are penalty clauses in it.

The cost to the taxpayer for the additional military staff is estimated to be £20 million. The Ministry of Defence has publically stated the extra cost will not be coming out of its budget and it expects to be fully reimbursed.

Mr Cameron attempted to inject some positivity back into London 2012. He said: "The facilities are built, the country is ready, we are in really good shape."

It follows concern about the closure of the M4 motorway, the ability of Border Force to cope with queues at Heathrow airport and, of course, the wet weather.

The M4 re-opened this morning.

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