Collapse of firm could provoke a crisis, says Opposition

THE GOVERNMENT is being urged to bring contracts from construction giant Carillion back into public control amid fears it could “collapse”.

The company is a major supplier to the Government and has contracts in the rail industry, such as HS2, as well as deals relating to education and NHS.

It has met lenders to discuss options to reduce debts, recapitalise and/or restructure the group’s balance sheet.

Carillion has struggled since reporting half-year losses of £1.15bn, and a meeting was held yesterday to discuss its pensions deficit.

Shadow Business Secretary Rebecca Long-Bailey said: “The collapse of Carillion could provoke a serious crisis.

“It would have major implications for the outsourced government contracts the company holds, as well as the firm’s thousands of workers, those in the supply chain and those who rely on Carillion’s pension fund.

“The Government, who, despite warnings carried on with its programme of outsourcing public services to this company, must stand ready to bring these contracts back into public control, stabilise the situation and safeguard our public services.”

A Government spokeswoman said: “Carillion is a major supplier to the Government, with a number of long-term contracts.

“We are committed to maintaining a healthy supplier market and work closely with our key suppliers.

“The company has kept us informed of the steps it is taking to restructure the business.

“We remain supportive of their ongoing discussions with their stakeholders and await future updates on their progress.”

The Pensions Regulator said it was not commenting on whether or not it was attending specific meetings, but a spokesman said: “We have been and remain closely involved in discussions with Carillion and the trustees of the pension schemes as this situation has unfolded.”