Carillion Liqudiation
So Carrilion has finally collapsed.Carillion collapse raises job fears
Analysis: Missed warning signs and huge debt - yet the Government kept on investing in Carillion
Fears fallout from Carillion collapse will spread to other companies
This is how one of the Government’s biggest contractors went bust
Carillion Collapses After U.K. Government Refuses Bailout
The Government has crucial questions to answer, one of them being why did they continue to award Carrillion contracts when it was clearly in trouble. It also raises questions about this model of privatisation being sustainable or indeed sensible. Statement from the Government about the collapse of Carrillion is due around 4:15pm in the Commons. It's a bad day for Carillion but a good day for Wates and Kier, such is business.
It was an 'accounting problem' that started the snowball rolling, it's good to hear no talk of a bailout if that's the case.
I was doing a bit of work for Wates/SES and Kier last year, often on Carillion jobs.
The Wates Chief Exec quit in November to take over at Carillion, he made a good call there! data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7 I have a suspicion this will cost the taxpayer a few squid. It makes you wonder how many other companies could be in trouble. Margins are cut to the bone in the race to the bottom in this industry, have been for years whether it's for private or public contracts. Once again a privatised public service fails and its directors no doubt paid stratospheric salaries, just to get bailed out by us taxpayers this time fulfilling their commitments. And Bernard Jenkins reckons a majority electorate confidence will be low in Private Companies running public services, a man who likes state the bleeding obvious.
I can with a degree of certainty predict those at the very top of the Carillon who have presided over it demise will never have to worry over their pensions or paying the mortgage unlike many of its hard working ground staff.
Four Seasons next...data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7 Reckon they will get the regular kind of bail out bonanza Carillion isn't a privatised public service is it?I thought they were a private sector company that holds hundreds of Government contracts to run public services, which is not the same thing at all.They have lots of irons in the fire, too many it turns out... Carillion came from Tarmac, so nothing to do with privatisation.
Still, lets not spoil tap's excitement... data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7 Tap's not the issue here data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7 I wonder how this will affect those with pensions or even those who may have taken out shares. And of course, if they hadn't awarded those contracts your headline would have been "Government causes firm to collapse & thousands of job losses"
What we need to find out is where all the money was going. Were the works too expensive? was it poorly managed? or is there someone, somewhere sat on a pile of money ?