Home / Uncategorised / Bring Carillion contracts back into public control

Readers will have heard the news that Carillion, the construction and facilities management firm, has gone into liquidation.

Carillion is a key supplier to the Government – its contracts include providing school dinners, cleaning and catering at NHS hospitals, construction work on road and rail projects and maintaining 50,000 army base homes for the Ministry of Defence. Carillion employs almost 20,000 people in the UK. Workers and small businesses in Slough, Windsor, Bracknell and surrounding areas will be among those affected.

Carillion Robin B'stards sign

Ministers need to explain why they approved multimillion pound contracts with a company on the verge of going bust. Chris Grayling, the transport secretary, also faces questions after he awarded work on the HS2 rail line to Carillion a week after the company issued a profits warning and its chief executive had departed.

Trades unions have reacted angrily to the news; the GMB saying it showed the perils of letting the private sector “run rampant in our schools, our hospitals and our prisons”. They have called for a public enquiry. Workers will be anxious about their jobs, pensions and their futures. It will be no comfort to them that the chief executive who resigned from Carillion last year after its profits warning, will be paid his £660,000 salary and £28,000 benefits for 12 months after his departure.

Ministers and officials must now ensure the £1.7 billion of annual Government contracts the firm holds are unaffected. During an interview on BBC Radio 4’s Today programme, David Lidington Cabinet Office minister, said “The message to workers is: come into work today, there’s important work to be done, we (the Government) will pay you.”

Given the list of broken promises from this Government, workers and their trades unions may be wary of such a promise. Rebecca Long-Bailey, Shadow Business Secretary, stated the Government must stand ready to bring contracts back into public control, stabilise the situation and safeguard our public services.

Slough Trades Council concurs with her message

Spike Humphrey
Slough & District Trades Council
12 Llanvair Drive
Ascot

Windsor Observer January 19 | 2018

 
 

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