Daily Mirror (Northern Ireland)
Tories’ £50,000 from fatcats who cashed in on Carillion failure
by Virgin, Stagecoach, Capita and Atos to deliver on promises to the state.
Slamming contracts given to Carillion despite three profit warnings last year, he said: “This isn’t one isolated case of Government negligence and corporate failure, it’s a broken system.
“Under this Government, Virgin and Stagecoach can spectacularly mismanage the East Coast Main Line and be let off a £2billion payment.
“Capita and Atos can continue to wreck the lives, through damaging disability assessments, of many people and win more Government-funded contracts. These corporations need to be shown the door.”
The Labour leader went on: “We need our public services provided by public employees with a public service ethos.”
Mrs May accused Mr Corbyn of failing to recognise most UK employees worked in the private sector, adding: “We’re a customer of Carillion, not the manager of Carillion.”
The PM also said she had ordered the fast-tracking of an investigation into the collapse of the firm and the conduct of current and former directors.
It emerged Carillion had just £29million in cash by the time it went bust, while struggling under £900million debt and a £587million pension deficit.
The firm’s projects include the HS2 railway, Midland Metropolitan Hospital in Smethwick, near Birmingham, and Royal Liverpool Hospital. Meanwhile, shares in outsourcing giant Interserve initially dived yesterday after it emerged the Cabinet Office was monitoring its finances.
It is understood officials began this after the first of two profit warnings last year. Debts at Interserve, which has numerous public sector contracts, have spiralled to £513million.
The share price later recovered. Neil Wilson, senior market analyst at ETX Capital, said: “It’s no Carillion.”
Naya Capital did not return requests for comment last night.