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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 statement on the crisis – live updates | |
(35 minutes later) | |
David Lidington says that Carillion only held contracts with 230 UK schools. | |
He confirms that 60% of Carillion’s revenue comes from private sector contracts. There is currently a 48-hour ‘grace period’ while customers decide whether to maintain those contracts or look elsewhere. | |
Workers on the 40% of public sector accounts will continue to be paid by the Official Receiver, Lidington confirms. | |
Lidington also takes a swipe at Trickett for his argument that Carillion’s contracts should be taken in house. | |
One third of Carillion’s contracts were awarded by the Conservative government, one third were awarded by the last coalition government (2010-2015) and a third were awarded under the previous Labour government. | |
David Lidington hits back at Labour’s Jon Trickett, pointing out a third of Carillion contracts were signed by the Labour government - when Trickett was working in Brown’s No10 | |
Jon Trickett asks David Lidington to reassure the House of Commons that Carillion isn’t the first in a series of dominos, and accuses the government of being ‘too cosy’ with Carillion management. | |
“Reckless, helpless and hopeless” @jon_trickett in the chamber now slamming the Government over Carillion collapse pic.twitter.com/3MhOFRB7T3 | |
Labour’s Jon Trickett is responding to David Lidington. | |
He says Lidington’s statement was ‘recklessly complacent’ in trying to avoid taking responsibility for the collapse of Carillion, which held 450 government contracts. | |
Trickett is also alarmed that Lidington mentioned the support available from Job Centre plus - that will send a shudder of fear through its 20,000 UK workforce. | |
He asks Lidington to confirm that Carillion provided services at 50 prisons, 9000 schools, 200 operating theatres and 11,800 hospital beds. | |
40% of Carillion’s income is derived from UK, Trickett says. | |
And if the government was really watching Carillion closely, as it claims, why did it allow the crucial role of Crown Representative of Carillion to lapse for three months? | |
Lidington says that the private sector plays an important role delivering UK public services - something that parties on both sides of the House of Commons have accepted. | |
Lidington say the government’s role is to plan and prepare contingency measures for Carillion. | |
Its ‘top priority’ is to keep public services running, so the government will support the Official Receiver to deliver uninterrupted services. | |
The Receiver is under a duty to report any improper conduct by officials, Lidington says. | |
The investigation will look at the conduct of directors at the point of insolvency, and also the actions of previous directors. | |
They will also consider whether any actions from directors has hurt the company’s pension scheme. | |
Lidington also insists that the government has been watching Carillion closely since its first profit warning last July - triggering some critical noises from the opposition benches. | |
MPs noisily reaction to @DLidington's assertion that govt has been monitoring #Carillion closely since July profit warning | |
Cabinet office minister David Lidington is delivering a statement on the Carillion crisis to MPs now. | |
He says the failure of Carillion is regrettable, but it is the failure of a private sector company. Its shareholders and lenders should bear the brunt of the cost. | |
Taxpayers should not and will not bail out a private sector company for private sector losses, Lidington insists (how thing have changed since the financial crisis in 2008!). | |
Breaking away from parliament, Britain’s prison officers are urging the government to take Carillion’s contract for prison maintenance back into public hands. | 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. | 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. | 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. | 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: | 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 | 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. | 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 | 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 | 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. | 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.... | 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 | 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. | 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. | 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] | [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’. | 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. | 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. | 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.... | 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: | 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? | 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? |