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Company's collapse leaves Alberta highway contracts in question

Payments to Carillion executives have ceased Payments to Carillion executives have ceased
Nellie Chapman | 19 January, 2018, 01:58

A PFI contract for Carillion to supply cleaning, catering, porterage to seven schools had seen contingency plans activated "and can confirm staff arrived for work and were undertaking their duties as expected today".

Announcing his intention to get to the bottom of Carillion's demise as soon as possible, Mr Clark said in a statement on Tuesday: "It is important we quickly get the full picture of the events which caused Carillion to enter liquidation, which is why I have asked the Insolvency Service to fast-track and broaden the scope of the Official Receiver's investigation".

It comes as Theresa May insisted she couldn't save the collapsed outsourcing giant because Government is only a "customer" of the firm, however she vowed to continue paying its staff.

Stephen Pegge, managing director for commercial finance at UK Finance, said: "UK banks and the Government are working closely to make sure the impact of the Carillion liquidation on SMEs (small and medium-sized enterprises) in the supply chain is understood and managed in a way that best supports those in need of assistance".

And Carillion's lenders, including Barclays, HSBC, the Royal Bank of Scotland (RBS), Lloyds and Santander UK, are facing heavy losses on their £2 billion exposure to the collapsed outsourcer.

He told Prime Minister's Questions: "Between July and the end of past year the share price of Carillion fell by 90 per cent, three profit warnings were issued, unbelievably some contracts were awarded by the Government even after the third profit warning".

The Insolvency Service said payments, including those in severance packages for former executives, had been halted after the firm went into liquidation on Monday.

The collapse is said to pose a threat to horticulture businesses that had contracts with the company.

A spokesman for Carillion Canada told The Canadian Press that all of its employees continue to be paid and that business is proceeding as usual.

Until now, there had been concerns that wages of those workers would only be guaranteed for 48 hours, meaning they might not have been paid after today.

"As the ruins of Carillion lie around her, will the Prime Minister act to end this costly racket of the relationship between Government and some of these companies?"

An investigation into the collapse of construction giant Carillion will be fast-tracked and "extended in scope". "We need our public services provided by public employees with a public service ethos and a strong public oversight".

"But what Labour oppose isn't just a role for private companies in public services - it's the private sector as a whole".

Earlier in the session, Labour MP Catherine McKinnell asked for guarantees an estimated 1,400 Carillion apprentices will be able to complete their training and be paid. "Any evidence of misconduct will be taken very seriously", he added.