Carillion collapse: 'Sites are silent and virtually deserted'

Elias Hubbard
January 18, 2018

The contract with the British construction company remains unaffected at this time, after they were unable to come to terms on a financial restructuring plan to address a 1.5 billion pound debt.(2.57 billion dollars CDN) Carillion PLC employs around 43,000 people worldwide, of which an estimated 6,000 jobs are listed under their Canadian operations.

Tom Riordan, the council's chief executive, said: "While Carillion were the preferred bidder for the ELOR work, a final contract had not been signed off".

While Unite, the country's biggest trade union, said: 'This is a classic case of rewards for failure'.

Hammond said Tuesday that the government had issued a line of credit to Carillion's receivers "that enables (them) to operate the company's public sector contracts".

"In the meantime, Alberta Transportation is working on contingency plans in the event Carillion Canada is also impacted and can no longer provide maintenance services".

That process could intensify today, as the government only offered Carillion-exposed companies will only receive two days of government support.

We've heard criticism from across political circles as to why a company that had issued three profit warnings in the space of a year was still being given large government contracts.

The news came after Labour leader Jeremy Corbyn used Prime Minister's Questions to tackle Theresa May over "wildly excessive bonuses" given to Carillion bosses.

"Is the business still viable without the Carillion work?"

Carillion went into compulsory liquidation on Monday this week after failing to secure continued support from its banks.

The 200-year-old firm employed 20,000 workers across Britain before banks pulled the plug.

The government had already promised to maintain funding for any public sector contracts affected.

He said: "We also know this will affect many people who work for Carillion directly and indirectly, and we will want to see how government can make sure any arrangements take account of the impact on them of what has happened".

Contracts it received included work on the HS2 railway, construction of new schools and hospitals, the building of the Aberdeen bypass and catering contracts with both schools and the Ministry of Defence.

The prime minister said the Official Receiver's investigation into the firm would "look into the conduct not just of current directors but also of previous directors and their actions".

On a separate point it does also suggest that maybe company accounts need to be made much more transparent, so that it is more hard to mask these sorts of problems.

'Any evidence of misconduct will be taken very seriously'.

The provincial government said at the time the "alternative financing and procurement" would provide savings of 18.2 per cent, or $101.7 million, compared to a traditionally publicly funded formula, according to a third-party value-for-money assessment.

Other reports by Click Lancashire

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