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Carillion crisis: take contracts back under public control, government urged Carillion crisis: take contracts back under public control, government urged
(35 minutes later)
The government is being urged to bring contracts from Carillion back into public control amid fears the construction company could collapse.The government is being urged to bring contracts from Carillion back into public control amid fears the construction company could collapse.
The firm is a major supplier to the government with contracts across education, the NHS and the rail industry, including HS2.The firm is a major supplier to the government with contracts across education, the NHS and the rail industry, including HS2.
NHS•Manages facilities including 200 operating theatres and 11,800 beds•Makes more than 18,500 patient meals per day•Helpdesks manage 1.5m calls per year•Engineering teams carry out maintenance workNHS•Manages facilities including 200 operating theatres and 11,800 beds•Makes more than 18,500 patient meals per day•Helpdesks manage 1.5m calls per year•Engineering teams carry out maintenance work
Transport•Building 'smart motorways' for the Highways Agency•Major contractor on £56bn HS2 high-speed rail project•Upgrades track and power lines for Network Rail•Major contractor on London’s Crossrail project•Roadbuilding and bridges Transport•Building 'smart motorways' which ease congestion by monitoring traffic and adjusting lanes or speed limits for the Highways Agency•Major contractor on £56bn HS2 high-speed rail project•Upgrades track and power lines for Network Rail•Major contractor on London’s Crossrail project•Roadbuilding and bridges
Defence•Infrastructure and housing for the armyEducation•Designed and built 150 schools•Services such as catering and cleaning at 875 schools Defence•Manages infrastructure and 50,000 homes for Ministry of Defence
Prisons•Maintenance and repairs at prisons Education•Designed and built 150 schools•Services such as catering and cleaning at 875 schools
Prisons•Maintenance and repairs at about half of UK prisons
Libraries•Manages several public libraries in EnglandLibraries•Manages several public libraries in England
Energy•Building substations, overhead cables and other works for National GridEnergy•Building substations, overhead cables and other works for National Grid
Carillion has met lenders to discuss options to reduce debts, recapitalise and/or restructure the group’s balance sheet.Carillion has met lenders to discuss options to reduce debts, recapitalise and/or restructure the group’s balance sheet.
The British multinational has struggled since reporting half-year losses of £1.15bn. A meeting is being held on Friday to discuss its pensions deficit.The British multinational has struggled since reporting half-year losses of £1.15bn. A meeting is being held on Friday to discuss its pensions deficit.
The shadow business secretary, Rebecca Long-Bailey, said: “The collapse of Carillion could provoke a serious crisis. It would have major implications for the outsourced government contracts the company holds, as well as the firm’s thousands of workers, those in the supply chain and those who rely on Carillion’s pension fund.The shadow business secretary, Rebecca Long-Bailey, said: “The collapse of Carillion could provoke a serious crisis. It would have major implications for the outsourced government contracts the company holds, as well as the firm’s thousands of workers, those in the supply chain and those who rely on Carillion’s pension fund.
“The government, who, despite warnings carried on with its programme of outsourcing public services to this company, must stand ready to bring these contracts back into public control, stabilise the situation and safeguard our public services.”“The government, who, despite warnings carried on with its programme of outsourcing public services to this company, must stand ready to bring these contracts back into public control, stabilise the situation and safeguard our public services.”
Mick Cash, general secretary of the Rail, Maritime and Transport (RMT) union, said: “The union’s absolute priority at this stage is our members’ jobs and their pension rights.Mick Cash, general secretary of the Rail, Maritime and Transport (RMT) union, said: “The union’s absolute priority at this stage is our members’ jobs and their pension rights.
“The workers caught in the middle of this financial meltdown at Carillion are not responsible for the crisis and they should have protection and guarantees from the government, including an assurance that operations will be directly transferred over to Network Rail with all jobs, pensions and rights safeguarded if Carillion goes bust.“The workers caught in the middle of this financial meltdown at Carillion are not responsible for the crisis and they should have protection and guarantees from the government, including an assurance that operations will be directly transferred over to Network Rail with all jobs, pensions and rights safeguarded if Carillion goes bust.
“RMT has been through a similar situation to this with the collapse of both Metronet on London Underground and Jarvis on the railways.“RMT has been through a similar situation to this with the collapse of both Metronet on London Underground and Jarvis on the railways.
“This is the high-risk gamble you take with handing infrastructure over to speculative private companies, and the workers caught in the crossfire must be protected and ministers must take immediate responsibility for giving those assurances without any prevarication.”“This is the high-risk gamble you take with handing infrastructure over to speculative private companies, and the workers caught in the crossfire must be protected and ministers must take immediate responsibility for giving those assurances without any prevarication.”
Unite union assistant general secretary Gail Cartmail, said: “The government must consider all options while the future of Carillion hangs in the balance, including bringing contracts back in-house.Unite union assistant general secretary Gail Cartmail, said: “The government must consider all options while the future of Carillion hangs in the balance, including bringing contracts back in-house.
“If the government is forced to institute a rescue package, they need to also ensure that the supply chain is fully protected as many of these workers lack even the protection of basic employment rights, as they are employed on a bogus self-employed basis, through agencies and via umbrella companies.”“If the government is forced to institute a rescue package, they need to also ensure that the supply chain is fully protected as many of these workers lack even the protection of basic employment rights, as they are employed on a bogus self-employed basis, through agencies and via umbrella companies.”
The government has said contingency plans are in place. “The company has kept us informed of the steps it is taking to restructure the business,” it said.The government has said contingency plans are in place. “The company has kept us informed of the steps it is taking to restructure the business,” it said.
The Pensions Regulator declined to comment on whether or not it was attending specific meetings, but a spokesman said: “We have been and remain closely involved in discussions with Carillion and the trustees of the pension schemes as this situation has unfolded.”The Pensions Regulator declined to comment on whether or not it was attending specific meetings, but a spokesman said: “We have been and remain closely involved in discussions with Carillion and the trustees of the pension schemes as this situation has unfolded.”
Carillion said it met creditors on Wednesday but would not comment on reports of further talks.Carillion said it met creditors on Wednesday but would not comment on reports of further talks.
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