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Government 'prepared for Carillion collapse'

Carillion power lines

The government has a plan of action in the event of Carillion’s collapse, a minister confirmed as the struggling construction company held urgent meetings with creditors.

Responding to a question from Labour MP Jon Trickett, Cabinet Office parliamentary secretary Oliver Dowden told the House of Commons that “contingency plans” are made for all eventualities. 

He said: “We, of course, make contingency plans for all eventualities…as members will know Carillion is a major supplier to the government with a number of long term contracts.

”We are committed to maintaining a healthy supply market and working closely with our suppliers. I can tell the house that Carillion’s operational performance has continued to be positive, for example they advanced their work on Crossrail over the Christmas period.”

Carillion’s size - it employs around 48,000 internationally - and close links with the government has led to speculation that the embattled firm could be ‘bailed out’. 

In a meeting yesterday Carillion hoped to come to an agreement with banks, including Barclays, HSBC and Santander, to safeguard its future. This morning The Times newspaper reports that a decision on Carillion’s future could be made by the end of the month.

The meeting came a week after the Financial Conduct Authority announced it is investigating the firm over the “timeliness and content” of announcements made last year.

 

 

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