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.