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Carillion liquidation: Government promises to pay staff to keep services running - live updates Carillion liquidation: Government promises to pay staff to keep services running - live updates
(35 minutes later)
Newsflash: Construction firm Balfour Beatty says Carillion’s collapse will cost it up to £45m.
In a statement to the City, it says:
Balfour Beatty is in Joint Venture with Carillion on three projects: the Aberdeen Western Peripheral Route, the A14 in Cambridgeshire and the M60 Junction 8 to M62 Junction 20 scheme.
Balfour Beatty will continue to work with its customers and will meet its contractual commitments.
The cash impact to Balfour Beatty is likely to be an outflow in the range of £35m to £45m in 2018.
However, rival construction firm Keir Group says it doesn’t expect to suffer a financial hit, even though it works with Carillion on the High Speed 2 project and the Highways England smart motorways programme.
Keir says:
We have put in place contingency plans for each of these projects and are working closely with clients so as to achieve continuity of service.
Following today’s announcement and after a short period of transition for these contracts, we do not expect there to be an adverse financial impact on the Group arising from these joint venture contracts.
Carillion’s former CEO could soon be summoned to parliament to explain what went wrong...
Chair of @CommonsPAC, Meg Hillier, says she’s keen to call former Carillion CEO, Richard Howson, to answer MPs questions about why company collapsed.
Accountancy firm PwC has issued a statement, confirming that the High Court has appointed the Official Receiver as liquidator for Carillion.
Six senior PwC executives will act as ‘special managers’ to assist in the operation.
PwC says staff affected should keep working while the situation unfolds:
The Official Receiver’s priority is to ensure the continuity of public services while securing the best outcome for creditors.
Unless told otherwise, all employees, agents and subcontractors are being asked to continue to work as normal and they will be paid for the work they do during the liquidations.
They also confirm that Carillion’s investors have been wiped out:
Unfortunately, as a result of the liquidation appointments, there is no prospect of any return to shareholders.
Carillion relies on major contracts, some of which have proved much less lucrative than it thought. 
Earlier this year it slashed the value of them by £845m, of which £375m related to major public-private partnerships (PPPs) such as Royal Liverpool University hospital. 
As its contracts underperformed, its debts soared to £900m. 
The company needed a £300m cash injection, but the banks that lent it money refused to put more in. 
The government also refused to step in and bail the firm out. 
That left the company unable to continue trading and forced it to go into liquidation.
The government has set up an advice page on the Carillion crisis:
Carillion declares insolvency: information for employees, creditors and suppliers
Train drivers’ union ASLEF has added its voice to the chorus of calls for a public inquiry.
Mick Whelan, general secretary of ASLEF, says:
‘Naturally, we are thinking of all the workers, in the public and private sectors, who have been impacted by the construction company Carillion going into administration today.
‘We do wonder, though, how and why, after serial profits warnings, contracts came to be awarded to Carillion, particularly in the rail sector by Chris Grayling, and the impact this may have on the future of Crossrail and HS2.
‘We echo the request from Rebecca Long-Bailey to bring all public sector contracts back under public control immediately.
‘And there needs to be an urgent public inquiry into all aspects of this and a recognition that PFI does not work for the taxpayer, the consumer, or the good of this country.’
Carillion’s former boss, Richard Howson, is under fire this morning.
Howson stepped down as Carillion’s CEO last July when it issued a shock profits warning. But he didn’t formally leave the firm until last autumn - and is receiving 12 months pay -- a £660,000 salary and £28,000 benefits.
Vince Cable MP, leader of the Liberal Democrats, says Howson’s payoff is an unacceptable ‘reward for failure’:
“We urgently need a parliamentary inquiry into some of the very questionable decisions made in the past few months, not least the award of public contracts to a company that was clearly in danger of collapse.
The issue of the former chief executive still being paid his salary, plus perks and bonus, is also a reward for failure that has to be looked into.”
Independent columnist Shehad Khan agrees:
Remarkable that the former chief exec of Carillion has a deal to be paid for 12 months after he resigned. He stood down after Carillion issued a shock profit warning and is still being paid his £660,000 salary and £28,000 benefits.
The Federation of Small Businesses has warned that many small UK businesses could be dragged down by Carillion’s failure.The Federation of Small Businesses has warned that many small UK businesses could be dragged down by Carillion’s failure.
FSB national chairman Mike Cherry says Carillion made its suppliers wait FOUR MONTHS before paying their bills.FSB national chairman Mike Cherry says Carillion made its suppliers wait FOUR MONTHS before paying their bills.
This means that many SMEs are nervously waiting to see if those invoices will still be paid. If not, they could be driven to the wall themselves.This means that many SMEs are nervously waiting to see if those invoices will still be paid. If not, they could be driven to the wall themselves.
Cherry says:Cherry says:
“It is vital that Carillion’s small business suppliers are paid what they are owed, or some of those firms could themselves be put in jeopardy, putting even more jobs at risk besides those of Carillion’s own employees.“It is vital that Carillion’s small business suppliers are paid what they are owed, or some of those firms could themselves be put in jeopardy, putting even more jobs at risk besides those of Carillion’s own employees.
“These unpaid bills may well go back several months. I wrote to Carillion back in July last year to express concern after hearing from FSB members that the company was making small suppliers wait 120 days to be paid.“These unpaid bills may well go back several months. I wrote to Carillion back in July last year to express concern after hearing from FSB members that the company was making small suppliers wait 120 days to be paid.
“Sadly these kind of poor payment practices are all too common among some big corporates. Perhaps if they weren’t it would be easier to spot the warning signs of a huge company in financial trouble.“Sadly these kind of poor payment practices are all too common among some big corporates. Perhaps if they weren’t it would be easier to spot the warning signs of a huge company in financial trouble.
“When the dust settles on this sorry saga, there is also a wider lesson to learn about the concentration of public contracts in the hands of a small number of very big businesses. Public procurement must be much more small-business friendly, in which it is easier for small firms to navigate the system and the Government should prioritise meeting its target of at least one third of taxpayer-funded contracts going to smaller firms.”“When the dust settles on this sorry saga, there is also a wider lesson to learn about the concentration of public contracts in the hands of a small number of very big businesses. Public procurement must be much more small-business friendly, in which it is easier for small firms to navigate the system and the Government should prioritise meeting its target of at least one third of taxpayer-funded contracts going to smaller firms.”
Labour MP Bill Esterson, the shadow business and international trade minister, fears that there could be a ‘massive’ impact:Labour MP Bill Esterson, the shadow business and international trade minister, fears that there could be a ‘massive’ impact:
Massive knock on effects through supply chain and impact on smaller firms. If Carillion’s suppliers aren’t paid, they will go bust too with the loss of thousands of jobs. https://t.co/Sj3a1647hkMassive knock on effects through supply chain and impact on smaller firms. If Carillion’s suppliers aren’t paid, they will go bust too with the loss of thousands of jobs. https://t.co/Sj3a1647hk
Carillion’s demise has caused shockwaves in Westminster too.Carillion’s demise has caused shockwaves in Westminster too.
Lord Adonis, the Labour peer who recently resigned as Theresa May’s infrastructure tsar, says the government has a lot of explaining to do.Lord Adonis, the Labour peer who recently resigned as Theresa May’s infrastructure tsar, says the government has a lot of explaining to do.
He suggests we could even be looking at a UK version of Enron - the US energy trader that spectacularly collapsed 15 years ago.He suggests we could even be looking at a UK version of Enron - the US energy trader that spectacularly collapsed 15 years ago.
HMG has big questions to answer. Why were they awarding contracts to Carillion after the exposure of its problems in July? What contingency planning did they do for the collapse? 20,000 jobs & huge projects at stake! More Brexit-induced Whitehall paralysis & incompetence. https://t.co/dYZ4XUUWgnHMG has big questions to answer. Why were they awarding contracts to Carillion after the exposure of its problems in July? What contingency planning did they do for the collapse? 20,000 jobs & huge projects at stake! More Brexit-induced Whitehall paralysis & incompetence. https://t.co/dYZ4XUUWgn
CARILLION: Shades of a British Enron. Wild overbidding, fast-and-loose & grossly overpaid management, taxpayers taken for a ride, AWOL auditors & pliant/ignorant ministers and officials. This is going to run & run!CARILLION: Shades of a British Enron. Wild overbidding, fast-and-loose & grossly overpaid management, taxpayers taken for a ride, AWOL auditors & pliant/ignorant ministers and officials. This is going to run & run!
Labour MP John Mann is calling for public sector contracts to be taken back into public control.Labour MP John Mann is calling for public sector contracts to be taken back into public control.
Another privatised company can’t make its contracts work. In MOD for example , simply bring these contracts in house today and the same staff can carry on doing the same job, only without huge profits and overheads being skimmed off.Another privatised company can’t make its contracts work. In MOD for example , simply bring these contracts in house today and the same staff can carry on doing the same job, only without huge profits and overheads being skimmed off.
The risk of contagion to other private contractors or public sector contracts is big and real. This is an opportunity to close down expensive, inflexible contracts and bring them back into the public sector.The risk of contagion to other private contractors or public sector contracts is big and real. This is an opportunity to close down expensive, inflexible contracts and bring them back into the public sector.
Another Labour MP, Gordon Marsden, says the government has taken its eye off the ball as it wrestled with the UK’s exit from the European Union.Another Labour MP, Gordon Marsden, says the government has taken its eye off the ball as it wrestled with the UK’s exit from the European Union.
Govt so obsessed w failing handling #Brexit Ministers ignored warning signs #Carillion- pumped £billions public money into contracts w Tory donor https://t.co/GHRVPmtne8 Carillion workers' pensions/dozens public sector schemes/plans at risk.Major scandal - Public Inquiry needed?Govt so obsessed w failing handling #Brexit Ministers ignored warning signs #Carillion- pumped £billions public money into contracts w Tory donor https://t.co/GHRVPmtne8 Carillion workers' pensions/dozens public sector schemes/plans at risk.Major scandal - Public Inquiry needed?
Carillion’s collapse will affect hundreds of projects and contracts across the UK.Carillion’s collapse will affect hundreds of projects and contracts across the UK.
Reuters explains:Reuters explains:
Britain’s Carillion collapsed on Monday after its banks lost faith in the construction and services company, throwing hundreds of major projects into doubt and forcing the government to step in to guarantee vital public services.Britain’s Carillion collapsed on Monday after its banks lost faith in the construction and services company, throwing hundreds of major projects into doubt and forcing the government to step in to guarantee vital public services.
Carillion was forced into compulsory liquidation after costly contract delays and a slump in new business left it at the mercy of its lenders and battling a ballooning debt pile.Carillion was forced into compulsory liquidation after costly contract delays and a slump in new business left it at the mercy of its lenders and battling a ballooning debt pile.
The demise of the 200-year-old business poses a major headache for Theresa May’s government which has employed Carillion to work on 450 projects including the building and maintenance of hospitals prisons, defence sites and the country’s new superfast rail line.....The demise of the 200-year-old business poses a major headache for Theresa May’s government which has employed Carillion to work on 450 projects including the building and maintenance of hospitals prisons, defence sites and the country’s new superfast rail line.....
Carillion has debt and liabilities of £1.5bn pounds with creditors that include banks RBS, Santander UK, HSBC and others. It has a pension deficit, included within that figure, of £580ms.Carillion has debt and liabilities of £1.5bn pounds with creditors that include banks RBS, Santander UK, HSBC and others. It has a pension deficit, included within that figure, of £580ms.
More here: Britain’s Carillion collapses, forcing government to step inMore here: Britain’s Carillion collapses, forcing government to step in
Carillion’s slump into liquidation is a major talking point in the City today.Carillion’s slump into liquidation is a major talking point in the City today.
Michael Hewson of financial spread-betting firm CMC Markets says:Michael Hewson of financial spread-betting firm CMC Markets says:
It appears to be the end of the road for Carillion, one of the UK’s biggest construction companies, as it files for compulsory liquidation having run out of time to put together a restructuring package with its lenders.It appears to be the end of the road for Carillion, one of the UK’s biggest construction companies, as it files for compulsory liquidation having run out of time to put together a restructuring package with its lenders.
The likelihood of a government bailout would appear to be remote, though the outstanding public sector contracts are set to taken in-house and run by the UK government. In terms of assets Carillion based on its 2016 accounts has tangible plant and machinery of £144m, a fraction of its overall debts, not to mention the £800m pensions liabilities.The likelihood of a government bailout would appear to be remote, though the outstanding public sector contracts are set to taken in-house and run by the UK government. In terms of assets Carillion based on its 2016 accounts has tangible plant and machinery of £144m, a fraction of its overall debts, not to mention the £800m pensions liabilities.
Whether these services will then be tendered out to another provider in order to recoup some costs may well be difficult given the potential political fallout.Whether these services will then be tendered out to another provider in order to recoup some costs may well be difficult given the potential political fallout.
Banks, government ministers and Carillion’s own management must share the blame for the company’s ignominious failure, says Neil Wilson of ETX Capital:Banks, government ministers and Carillion’s own management must share the blame for the company’s ignominious failure, says Neil Wilson of ETX Capital:
This was a case of bad management and pitching for contracts at any price, but the government and banks could, or may be should, have done more.This was a case of bad management and pitching for contracts at any price, but the government and banks could, or may be should, have done more.
Given the government was already up to its neck in this, shareholders have every right to be disappointed. The FCA is looking at the timing of profits warnings but you could also argue that the number and value of government contracts being awarded following those warnings also misled investors by painting a false picture of health. They may also question why banks that were bailed out by taxpayers were among those who forced the company to the brink. A terrible mess and one that will take a long time to clean up.Given the government was already up to its neck in this, shareholders have every right to be disappointed. The FCA is looking at the timing of profits warnings but you could also argue that the number and value of government contracts being awarded following those warnings also misled investors by painting a false picture of health. They may also question why banks that were bailed out by taxpayers were among those who forced the company to the brink. A terrible mess and one that will take a long time to clean up.
Rebecca O’Keeffe, Head of Investment at interactive investor, warns that Carillion’s collapse will send fear rippling through the economy.Rebecca O’Keeffe, Head of Investment at interactive investor, warns that Carillion’s collapse will send fear rippling through the economy.
The government’s decision to walk away from Carillion appears to be based on optics rather than logic and looks like the wrong decision was made for the wrong reasons.The government’s decision to walk away from Carillion appears to be based on optics rather than logic and looks like the wrong decision was made for the wrong reasons.
There is no doubt that Carillion posed a huge political challenge for the government, which did not want to be seen to bail out another group of private shareholders and banks after suffering such a backlash from their decisions during the financial crisis.There is no doubt that Carillion posed a huge political challenge for the government, which did not want to be seen to bail out another group of private shareholders and banks after suffering such a backlash from their decisions during the financial crisis.
However, the prospect of the government temporarily funding existing Carillion public service contracts, alongside the likely increase in costs for renegotiating contracts with new suppliers, make it highly likely that they could ultimately pay far more than if they had provided the guarantees that Carillion’s creditors needed.However, the prospect of the government temporarily funding existing Carillion public service contracts, alongside the likely increase in costs for renegotiating contracts with new suppliers, make it highly likely that they could ultimately pay far more than if they had provided the guarantees that Carillion’s creditors needed.
Gemma Godfrey of investment site Moola says Carillion’s collapse shows the downside of outsourcing public sector work to private companies.Gemma Godfrey of investment site Moola says Carillion’s collapse shows the downside of outsourcing public sector work to private companies.
A private company makes profit from the project. And yet, when a situation like this arises, the government has to step in to make sure that the contracts are still honoured - as we’re talking about our schools and our healthcare.A private company makes profit from the project. And yet, when a situation like this arises, the government has to step in to make sure that the contracts are still honoured - as we’re talking about our schools and our healthcare.
We maintain the risk and have to bear some losses, as a taxpayer, rather than the private company that paid very large executive salaries.We maintain the risk and have to bear some losses, as a taxpayer, rather than the private company that paid very large executive salaries.
Why our 2nd largest building company #Carillion going bust raises massive questions about the way we run our schools, healthcare & infrastructure projects. 20,000+ potential job losses. (@MoolaTeam @SkyNews @Nick_Hewer) pic.twitter.com/zly5vlm3RQWhy our 2nd largest building company #Carillion going bust raises massive questions about the way we run our schools, healthcare & infrastructure projects. 20,000+ potential job losses. (@MoolaTeam @SkyNews @Nick_Hewer) pic.twitter.com/zly5vlm3RQ
David Lidington ducked a question about whether a public inquiry should be held into Carillion, as he urged staff to keep working.David Lidington ducked a question about whether a public inquiry should be held into Carillion, as he urged staff to keep working.
But his opposite number, shadow cabinet office minister Jon Trickett MP, insists a ‘serious investigation’ is needed.But his opposite number, shadow cabinet office minister Jon Trickett MP, insists a ‘serious investigation’ is needed.
Trickett says:Trickett says:
“The Government must act quickly to bring these public sector contracts back in-house to protect public services and ensure employees, supply chain companies, taxpayers and pension fund members are protected.“The Government must act quickly to bring these public sector contracts back in-house to protect public services and ensure employees, supply chain companies, taxpayers and pension fund members are protected.
“Given £2billion worth of Government contracts were awarded in the time three profit warnings were given by Carillion, a serious investigation needs to be launched into the Government’s handling of this matter.“Given £2billion worth of Government contracts were awarded in the time three profit warnings were given by Carillion, a serious investigation needs to be launched into the Government’s handling of this matter.
“It is vital that shareholders and creditors are not allowed to walk away with the rewards from profitable contracts while the taxpayer bails out loss-making parts of the business.”“It is vital that shareholders and creditors are not allowed to walk away with the rewards from profitable contracts while the taxpayer bails out loss-making parts of the business.”
The government’s “first priority” is to ensure that the public services that were delivered by Carillion continue to operate.The government’s “first priority” is to ensure that the public services that were delivered by Carillion continue to operate.
Cabinet Office minister David Lidington tells Radio 4’s Today programme that:Cabinet Office minister David Lidington tells Radio 4’s Today programme that:
“The first priority, the one that I’ve asked ministers and all officials to concentrate on, is actually ensuring that public services continue.“The first priority, the one that I’ve asked ministers and all officials to concentrate on, is actually ensuring that public services continue.
So the message to workers is, come in to work today, there’s important work to be done, and you will be paid. The government will pay your wages via the official receiver, not via Carillion.”So the message to workers is, come in to work today, there’s important work to be done, and you will be paid. The government will pay your wages via the official receiver, not via Carillion.”
“As we go forward, some services will be taken in house, some services will go out to alternative contractors in a managed, orderly fashion.“As we go forward, some services will be taken in house, some services will go out to alternative contractors in a managed, orderly fashion.
Lidington adds that some services previously supplied by Carillion will, in time, be handed to other operators.Lidington adds that some services previously supplied by Carillion will, in time, be handed to other operators.
As we go forwards, some services will be taken in house, some will go out to alternative providers in a managed, organised fashion.As we go forwards, some services will be taken in house, some will go out to alternative providers in a managed, organised fashion.
David Lidington, the Cabinet Office minister, is on Radio 4’s Today programme now discussing Carillion’s collapse.David Lidington, the Cabinet Office minister, is on Radio 4’s Today programme now discussing Carillion’s collapse.
Q: Why were huge contracts awarded to Carillion even though they were issuing profit warnings?Q: Why were huge contracts awarded to Carillion even though they were issuing profit warnings?
Lidington says Carillion’scollapse is regrettable.Lidington says Carillion’scollapse is regrettable.
The government decided that taxpayers can’t be expected to bail out a private sector company - especially when its problems didn’t come directly from its public sector work.The government decided that taxpayers can’t be expected to bail out a private sector company - especially when its problems didn’t come directly from its public sector work.
Contingency plans have been drawn up in recent months following Carillion’s first profits warning in 2017, Lidington explains.Contingency plans have been drawn up in recent months following Carillion’s first profits warning in 2017, Lidington explains.
That means that contracts were drawn up so that if Carillion failed, other contractors must now come in and take over Carillion’s responsibilities.That means that contracts were drawn up so that if Carillion failed, other contractors must now come in and take over Carillion’s responsibilities.
Q: But hedge funds have been betting against Carillion for months - why did you keep handing it new contracts?Q: But hedge funds have been betting against Carillion for months - why did you keep handing it new contracts?
Lidington repeats that contracts were drawn up in a way to guarantee public servicesLidington repeats that contracts were drawn up in a way to guarantee public services
This is a “managed liquidation and administration”, he says, addingThis is a “managed liquidation and administration”, he says, adding
“There will not be a fire sale of assets.“There will not be a fire sale of assets.
The government will pay the administrative costs of the Official Reciever so we can guarantee the supply of public services, he continues.The government will pay the administrative costs of the Official Reciever so we can guarantee the supply of public services, he continues.
Q: So will the taxpayer pick up the billl?Q: So will the taxpayer pick up the billl?
Lidington says the government will pay the costs of the official receiver, but he believes this will be “considerably less” than the cost of an unplanned collapse.Lidington says the government will pay the costs of the official receiver, but he believes this will be “considerably less” than the cost of an unplanned collapse.
Oxfordshire County Council has issued a statement, saying it has taken over services provided by Carillion, such as school meals.Oxfordshire County Council has issued a statement, saying it has taken over services provided by Carillion, such as school meals.
The council has been “planning for the possibility of Carillion’s collapse for some time,” and expects workers to turn up for work as usual. If they don’t, firefighters are ‘on standby’ to get Oxfordshire’s children fed.The council has been “planning for the possibility of Carillion’s collapse for some time,” and expects workers to turn up for work as usual. If they don’t, firefighters are ‘on standby’ to get Oxfordshire’s children fed.
Alexandra Bailey, the council’s Director for Property, Assets and Investment, says:Alexandra Bailey, the council’s Director for Property, Assets and Investment, says:
“We expect school staff will be in work as normal today but if this doesn’t happen we will provide school lunches to schools needing support, and the fire service are on standby to deliver them. We are confident no child will go hungry at school.“We expect school staff will be in work as normal today but if this doesn’t happen we will provide school lunches to schools needing support, and the fire service are on standby to deliver them. We are confident no child will go hungry at school.
“We thank schools for their support and understanding as we deal with the situation. I’d also like to thank staff for continuing to do a great job during a period of uncertainty, and to reassure them that the county council will ensure staff are paid.”“We thank schools for their support and understanding as we deal with the situation. I’d also like to thank staff for continuing to do a great job during a period of uncertainty, and to reassure them that the county council will ensure staff are paid.”
Council acts swiftly to take on services - including some school meals and cleaning - after Carillion goes into liquidation https://t.co/0an6GRUN3a pic.twitter.com/Wlwtw0BOeRCouncil acts swiftly to take on services - including some school meals and cleaning - after Carillion goes into liquidation https://t.co/0an6GRUN3a pic.twitter.com/Wlwtw0BOeR
Carillions’s shares have been temporarily suspended from trading on the London stock market.Carillions’s shares have been temporarily suspended from trading on the London stock market.
They have plunged in recent months, taking its value down to around £60m.They have plunged in recent months, taking its value down to around £60m.
Good news for commuters:Good news for commuters:
Rail passengers reassured that their services will be running as normal today as Carillion's work for Network Rail does not involve the day-to-day running of the railway - @networkrailRail passengers reassured that their services will be running as normal today as Carillion's work for Network Rail does not involve the day-to-day running of the railway - @networkrail
Carillion is the second biggest supplier of maintenance services to Network Rail, though, so its collapse is still a significant event.Carillion is the second biggest supplier of maintenance services to Network Rail, though, so its collapse is still a significant event.
Pressure is mounting fast on the UK government to set up a full public inquiry into the collapse of Carillion.Pressure is mounting fast on the UK government to set up a full public inquiry into the collapse of Carillion.
Jim Kennedy, Unite’s national officer for local government, says the company’s management must be held to account:Jim Kennedy, Unite’s national officer for local government, says the company’s management must be held to account:
“Public services, vast amounts of public money, thousands of jobs - including in a lengthy supply chain of insecure agency workers who are also at risk - and workers’ hard-saved pensions are all in danger of being dragged under by yet another bout of reckless corporate irresponsibility.“Public services, vast amounts of public money, thousands of jobs - including in a lengthy supply chain of insecure agency workers who are also at risk - and workers’ hard-saved pensions are all in danger of being dragged under by yet another bout of reckless corporate irresponsibility.
“There are also serious questions that need to be asked and answered about Carillion’s conduct.“There are also serious questions that need to be asked and answered about Carillion’s conduct.
“Did directors move to protect their bonuses before the financial stability of the company?“Did directors move to protect their bonuses before the financial stability of the company?
“Has the company mushroomed because it built its business on unrealistic undercutting and blacklisting?“Has the company mushroomed because it built its business on unrealistic undercutting and blacklisting?
“Why did the government continue to hand over public money to a company that had issued repeated profits warnings?”“Why did the government continue to hand over public money to a company that had issued repeated profits warnings?”
Labour’s Rebecca Long-Bailey also called for a ‘full investigation’ into the debacle, saying:Labour’s Rebecca Long-Bailey also called for a ‘full investigation’ into the debacle, saying:
“We’re ... asking for a full investigation into the government conduct of this matter.“We’re ... asking for a full investigation into the government conduct of this matter.
“This company issued three profit warnings in the last six months yet despite those profit warnings the government continued to award government contracts to this company.”“This company issued three profit warnings in the last six months yet despite those profit warnings the government continued to award government contracts to this company.”
Labour has called for an investigation into the Government's actions ahead of the collapse of construction and services company Carillion which has been forced into compulsory liquidationLabour has called for an investigation into the Government's actions ahead of the collapse of construction and services company Carillion which has been forced into compulsory liquidation
Financial analyst and journalist Louise Cooper is also struck by the decision to liquidate Carillion:Financial analyst and journalist Louise Cooper is also struck by the decision to liquidate Carillion:
Fact that it’s a liquidation (winding up) of Carillion and not going into administration (to come out eventually as smaller profitable firm) says a lot oboit underlying financials of firm.#CarillionFact that it’s a liquidation (winding up) of Carillion and not going into administration (to come out eventually as smaller profitable firm) says a lot oboit underlying financials of firm.#Carillion