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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/jan/15/carillion-crisis-liquidation-last-ditch-talks-fail-business-live
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| Carillion liquidation: Government to hold Cobra crisis meeting – live updates | Carillion liquidation: Government to hold Cobra crisis meeting – live updates |
| (35 minutes later) | |
| Breaking away from parliament, Britain’s prison officers are urging the government to take Carillion’s contract for prison maintenance back into public hands. | |
| Steve Gillan, general secretary of the POA trade union, says facilities have deteriorated on Carillion’s watch. | |
| We need to know the contingency plans to keep our prisons operational. During the time Carillion had this contract the level of essential maintenance and work that is outstanding has spiraled out of control. | |
| This has resulted in loss of prison accommodation and in-humane conditions in our prisons. | |
| My colleague Amelia Gentleman warned last year that Wandsworth prison wasn’t keeping up to speed with repairs: | |
| When I visited Wandsworth prison I was surprised at how many cell windows were broken - too many to count. It was January and quite cold. Staff said responsibility for mending windows had been outsourced to #Carillion https://t.co/ayvkBcqytX | |
| Britain’s top civil servant, cabinet secretary Sir Jeremy Heywood, admits that Carillion has gone badly wrong. | |
| The Cabinet Secretary says to @commonspacac that the collapse of #Carillion is a 'bad outcome for the country' pic.twitter.com/18VyGvMwqv | |
| Sir Jeremy Heywood: The system as a whole is robust, but clearly Carillion has gone badly wrong. #Carillion we have launched an inquiry https://t.co/19I6atLIhB pic.twitter.com/gD045Tn9lK | |
| John Manzoni tells the PAC committee that he hopes that “most” of the jobs and pensions at Carillion will be preserved. | |
| That’s effectively an admission that some won’t be.... | |
| Manzoni: we hope that most of the the pensions of the 20,000 people employed by Carillon will continue to be paid #Carillion pic.twitter.com/jI4a7CHv05 | |
| The Public Accounts Committee is uncovering some intriguing detail into the Carillion breakdown, as it quizzes Cabinet Office head honcho John Manzoni. | |
| Manzoni has revealed that the government’s Crown Representative ‘rotated off’ the Carillion account this summer - just when the company suffered its first profit warning. | |
| [explanation: a Crown Representative is a senior role, meant to help the government get a good deal from its suppliers] | |
| This meant that “the horsepower” around the Carillion was provided by the strategic partnership management team, who Manzoni insists ‘played a blinding role’. | |
| The committee aren’t impressed; one MP asks whether this meant they had their eyes covered. | |
| No, says Manzoni coldly. The head of this team did a very good job, he insists. | |
| Whitehall boss John Manzoni admits Carillion’s monitoring Crown Representative rotated off in the summer to focus on other work, at the time of the profits warning.... | |
| But Manzoni also seems to imply that Carillion’s second profits warning, two months ago, jolted the civil service: | |
| Manzoni concedes in front of MPs that while Carillion's July profit warning that put civil servants 'on notice' officials only 'really started to notice in November' after the *second* profit warning. Does that mean at first they missed it? | |
| There seems to be some confusion about this crisis meeting.... | There seems to be some confusion about this crisis meeting.... |
| Downing Street is now correcting the Defence Secretary and saying it is not a Cobra meeting but a meeting of junior ministers to discuss Carillion. @Number10press | Downing Street is now correcting the Defence Secretary and saying it is not a Cobra meeting but a meeting of junior ministers to discuss Carillion. @Number10press |
| Q. When is a COBRA meeting not a COBRA meeting? A. (from Downing Street) When it's a planned ministerial meeting that happens to be taking place in Cabinet Office Briefing Room A #Carillion | Q. When is a COBRA meeting not a COBRA meeting? A. (from Downing Street) When it's a planned ministerial meeting that happens to be taking place in Cabinet Office Briefing Room A #Carillion |
| The Public Accounts Committee is now quizzing the cabinet office’s top civil servants about why Carillion was handed public sector contracts at a time when City hedge funds were betting against the company. | The Public Accounts Committee is now quizzing the cabinet office’s top civil servants about why Carillion was handed public sector contracts at a time when City hedge funds were betting against the company. |
| Q: Why can’t the government tell a company like Carillion to ‘take a holiday’ from bidding for government contracts, because they look high risk? | Q: Why can’t the government tell a company like Carillion to ‘take a holiday’ from bidding for government contracts, because they look high risk? |
| Because it’s against the law, shoots back permanent secretary John Manzoni. | Because it’s against the law, shoots back permanent secretary John Manzoni. |
| Q: So how can you be mitigaging risks if you are handing Carillion contracts that you don’t want to? | Q: So how can you be mitigaging risks if you are handing Carillion contracts that you don’t want to? |
| We never award contracts that we don’t want to, Manzoni replies. The government always does a full review of every company involved when we award these bids. | We never award contracts that we don’t want to, Manzoni replies. The government always does a full review of every company involved when we award these bids. |
| Manzoni describes Carillion’s liquidation as a “very unusual” move, designed to prevent a sudden breakdown in public services. | Manzoni describes Carillion’s liquidation as a “very unusual” move, designed to prevent a sudden breakdown in public services. |
| We have put it to the Official Receiver with an instruction to keep public services running.... | We have put it to the Official Receiver with an instruction to keep public services running.... |
| The cost of that is no greater than running these contracts in the normal course of business. | The cost of that is no greater than running these contracts in the normal course of business. |
| But, there will be some additional costs incurred by the Official Receiver, which the taxpayer will pick up. | But, there will be some additional costs incurred by the Official Receiver, which the taxpayer will pick up. |
| Cabinet Office perm sec John Manzoni comes close to a 'crisis, what crisis?' moment on #Carillion. "Companies fail and succeed and we need to accept some of that will happen...some wheel is going to come off somewhere in the structure." But says lessons hv bn learned in past. | Cabinet Office perm sec John Manzoni comes close to a 'crisis, what crisis?' moment on #Carillion. "Companies fail and succeed and we need to accept some of that will happen...some wheel is going to come off somewhere in the structure." But says lessons hv bn learned in past. |
| Newsflash: Britain’s Public Administration and Constitutional Affairs Committee is launching a new inquiry following Carillion’s liquidation. | Newsflash: Britain’s Public Administration and Constitutional Affairs Committee is launching a new inquiry following Carillion’s liquidation. |
| The inquiry will be called “Sourcing public services: lessons to be learned from the collapse of Carillion”. | The inquiry will be called “Sourcing public services: lessons to be learned from the collapse of Carillion”. |
| PAC committee chairman Bernard Jenkin says it will go wider than just Carillion, and will look at issues raised by the committee in previous years such as the provision of IT services. | PAC committee chairman Bernard Jenkin says it will go wider than just Carillion, and will look at issues raised by the committee in previous years such as the provision of IT services. |
| Jenkin announced the probe as his committee grills three top civil servants from the cabinet office – Sir Jeremy Heywood, Cabinet Secretary, John Manzoni, Permanent Secretary, and Rupert McNeil, Chief People Officer. | Jenkin announced the probe as his committee grills three top civil servants from the cabinet office – Sir Jeremy Heywood, Cabinet Secretary, John Manzoni, Permanent Secretary, and Rupert McNeil, Chief People Officer. |
| UK parliamentary committee says it will launch inquiry into government outsourcing in light of #Carillion collapse pic.twitter.com/sZIeZIWgVR | UK parliamentary committee says it will launch inquiry into government outsourcing in light of #Carillion collapse pic.twitter.com/sZIeZIWgVR |
| Over in parliament, defence minister Gavin Williamson has revealed that the government will hold a crisis meeting later today to discuss the collapse of Carillion. | Over in parliament, defence minister Gavin Williamson has revealed that the government will hold a crisis meeting later today to discuss the collapse of Carillion. |
| During defence questions, Williamson told MPs that: | During defence questions, Williamson told MPs that: |
| We’ve been monitoring this very closely, and working with our industrial partners. | We’ve been monitoring this very closely, and working with our industrial partners. |
| There will be a Cobra meeting today later on today to look at addressing some of the most immediate issues. | There will be a Cobra meeting today later on today to look at addressing some of the most immediate issues. |
| Cobra stands for Cabinet Office briefing room A. It is an emergency council meeting which is convened when the government faces a big crisis - particularly one which involves several government departments. | Cobra stands for Cabinet Office briefing room A. It is an emergency council meeting which is convened when the government faces a big crisis - particularly one which involves several government departments. |
| In Defence’s case, Carillion managed 50,000 military homes in partnership with AMEY (as explained this morning). | In Defence’s case, Carillion managed 50,000 military homes in partnership with AMEY (as explained this morning). |
| Williamson says that the government will work with AMEY to ensure that standards are driven up, and to make sure that service quality doesn’t suffer. | Williamson says that the government will work with AMEY to ensure that standards are driven up, and to make sure that service quality doesn’t suffer. |
| Gavin Williamson - COBRA will meet later today to discuss Carillion. | Gavin Williamson - COBRA will meet later today to discuss Carillion. |
| NEW: Government emergency committee COBRA is meeting later today to discuss the collapse of Carillion - it will "look at addressing some of the most immediate issues", Defence Secretary Gavin Williamson says | NEW: Government emergency committee COBRA is meeting later today to discuss the collapse of Carillion - it will "look at addressing some of the most immediate issues", Defence Secretary Gavin Williamson says |
| George Osborne’s attempt to blame the civil service for the Carillion crisis may be backfiring, as photos of the ex-chancellor posing in Carillion-branded hard hats hit the internet. | George Osborne’s attempt to blame the civil service for the Carillion crisis may be backfiring, as photos of the ex-chancellor posing in Carillion-branded hard hats hit the internet. |
| How did it happen I wonder pic.twitter.com/AGNkqwxO0s | How did it happen I wonder pic.twitter.com/AGNkqwxO0s |
| Osborne on Carillion: Then and Now https://t.co/a8KDMzw7Bk pic.twitter.com/bj51omNRo6 | Osborne on Carillion: Then and Now https://t.co/a8KDMzw7Bk pic.twitter.com/bj51omNRo6 |
| The serious point is that Osborne had a massive influence on Britain’s finances for several years, and pushed on with PFI contracts after becoming chancellor. This crisis can’t simply be blamed on civil servants; their job is to implement government policy. | The serious point is that Osborne had a massive influence on Britain’s finances for several years, and pushed on with PFI contracts after becoming chancellor. This crisis can’t simply be blamed on civil servants; their job is to implement government policy. |
| Britain’s corporate governance watchdog, the Financial Reporting Council, have revealed they have been “actively” watching the situation at Carillion. | Britain’s corporate governance watchdog, the Financial Reporting Council, have revealed they have been “actively” watching the situation at Carillion. |
| That’s may not be much comfort to Carillion’s workers and clients. But it could suggest that Carillion’s auditors, KPMG, will face investigation. | That’s may not be much comfort to Carillion’s workers and clients. But it could suggest that Carillion’s auditors, KPMG, will face investigation. |
| The FRC says: | The FRC says: |
| We have been actively monitoring this situation for some time in close consultation with other relevant regulatory bodies. | We have been actively monitoring this situation for some time in close consultation with other relevant regulatory bodies. |
| We have powers to investigate the circumstances relating to the audit of Carillion as well as the actions of the relevant accounting professionals. | We have powers to investigate the circumstances relating to the audit of Carillion as well as the actions of the relevant accounting professionals. |
| We are obliged to follow due process and will make a further statement on this matter shortly. | We are obliged to follow due process and will make a further statement on this matter shortly. |
| Equipment firm Speedy Hire is being pummelled by City traders, sending its shares down by up to 8% today. | Equipment firm Speedy Hire is being pummelled by City traders, sending its shares down by up to 8% today. |
| Carillion was a major customer for Speedy Hire, which supplies tools to the construction industry. | Carillion was a major customer for Speedy Hire, which supplies tools to the construction industry. |
| Serco the winner, Speedy Hire the loser today from the #Carillion collapse pic.twitter.com/w0WmlmOMr8 | Serco the winner, Speedy Hire the loser today from the #Carillion collapse pic.twitter.com/w0WmlmOMr8 |
| The collapse of Carillion has also caused alarm in the Republic of Ireland. | The collapse of Carillion has also caused alarm in the Republic of Ireland. |
| Ireland correspondent Henry McDonald reports: | Ireland correspondent Henry McDonald reports: |
| The Irish government has been urged to act swiftly and decisively regarding five schools in Ireland that have been left in limbo over the collapse of Carillion. | The Irish government has been urged to act swiftly and decisively regarding five schools in Ireland that have been left in limbo over the collapse of Carillion. |
| Main opposition party Fianna Fail has warned today that the schools are completely unsure as to what will happen their building projects which under the remit of Carillion. | Main opposition party Fianna Fail has warned today that the schools are completely unsure as to what will happen their building projects which under the remit of Carillion. |
| Fianna Fail Education spokesperson Thomas Byrne said one of the schools is in his own Meath East constituency. | Fianna Fail Education spokesperson Thomas Byrne said one of the schools is in his own Meath East constituency. |
| “Eureka Secondary School in Kells is due to open in a matter of weeks but as a result of the difficulties at Carillion, there is doubt as to when it might happen, and who will provide the facilities management and catering services in the school.” | “Eureka Secondary School in Kells is due to open in a matter of weeks but as a result of the difficulties at Carillion, there is doubt as to when it might happen, and who will provide the facilities management and catering services in the school.” |
| Byrne called on the state to take over the running of the non-academic services at all five schools and then possibly tender again for the contracts after Carillion’s collapse. | Byrne called on the state to take over the running of the non-academic services at all five schools and then possibly tender again for the contracts after Carillion’s collapse. |
| Update: Cabinet Office minister David Lidington is expected to update MPs on the Carillion crisis at around 4.15pm. | Update: Cabinet Office minister David Lidington is expected to update MPs on the Carillion crisis at around 4.15pm. |
| Defence in Parliament update: 3.30pm today - urgent question about the National Security Capability Review. So this will follow defence oral questions at 2.30pm. Government statement on Carillion expected around 4.15pm. https://t.co/eJ3knaOJz2 | Defence in Parliament update: 3.30pm today - urgent question about the National Security Capability Review. So this will follow defence oral questions at 2.30pm. Government statement on Carillion expected around 4.15pm. https://t.co/eJ3knaOJz2 |
| A spokesman for the RMT rail workers union said it was “almost inevitable” that some trains won’t be cleaned today due to the collapse of Carillion. | A spokesman for the RMT rail workers union said it was “almost inevitable” that some trains won’t be cleaned today due to the collapse of Carillion. |
| That’s due to the problems with its fuel cards (see earlier post) | That’s due to the problems with its fuel cards (see earlier post) |
| The company employed train cleaners, who were issued with vans to get from job to job and fuel cards to pay for petrol. | The company employed train cleaners, who were issued with vans to get from job to job and fuel cards to pay for petrol. |
| With the company in liquidation, those fuel cards have stopped working, making it impossible for cleaning staff to do their jobs unless they are willing to dip into their own pockets. | With the company in liquidation, those fuel cards have stopped working, making it impossible for cleaning staff to do their jobs unless they are willing to dip into their own pockets. |
| If your train carriage on the commute home is filthy this evening, that might be why. | If your train carriage on the commute home is filthy this evening, that might be why. |