”Fears are growing that construction group Carillion, which also runs vital services for schools, the army and the NHS, is on the verge of collapse as it struggled to win approval from lenders for a financial rescue plan.
Accountancy firm EY has been lined up to manage a potential administration, while the Cabinet Office on Friday hosted emergency talks with the Pensions Regulator about the company’s 28,000-member pension scheme, which has a £580m deficit.
Labour called on the government to be ready to take the debt-laden company’s contracts back under state control but trade unions warned Carillion must not be offered a “blank cheque” bailout.”
https://www.theguardian.com/business/2018/jan/12/carillion-crisis-recall-contracts-public-control-uk-government-labour
gavthechav
I worked for them for a couple of years 2006-2008 as a QS. Strange business model. Cash positive project more important than profitable project. Then they would play banker on over night trading with the positive net cash where the real money was to be made. Never liked that model, devalued our good work.
Then the banking crisis hit and I bet they’ve been hiding the damage since by stealing from the pension pot. Criminal fraudulent behaviour in there somewhere I bet.
zengeorge56
Hang on a minute! I thought that the whole point of outsourcing all of this stuff to these private sector conglomerates was because they would be so much more “efficient” and “cost effective” than having the government undertake these activities directly.
Hmmmm…..how is that going so far??
I am reminded of the immortal wisdom of China’s Deng Xiaoping who said, “It does not matter if the cat is black or white as long as it catches mice.”
The Carillion cat is clearly experiencing severe mousephobia!
Paul Donegan
Capitalism’s rampant success highlighted again! I’m so glad ‘the Market’ is working to rid us of failing companies. It’ll be great to watch our free market supporting government stand by and allow Carillion to go bankrupt. After all, ‘the Market’ will simply pop up and supply us all with new jobs and a totally new multinational construction company in no time at all. Bravo the Conservative party and their adherence to non-interventionist, free market politics! No bailout for you, Carillion! Our Tory savioura will send you packing with their powers of fiscal responsibility!!
ukgovernmentwatch 