UK
Ireland
Scotland
London
Construction News
14/01/2019
Govt Slammed For Failure To Take Action Following Carillion Collapse
The government has been slammed for its failure to take action following the collapse of Carillion last year.
UK construction union, Unite has hit out at the government, warning that the inaction is putting jobs at risk and could result in future corporate meltdowns.
Carillion went into compulsory liquidation on 15 January 2018, leaving 3,000 redundant and forcing many if its sub contractors out of business.
The cost to the taxpayer for Carillion's collapse is well in excess of £150 million, much of this money has been paid to accountants PwC, who have been paid in excess of £50 million to act as 'special managers' to break up the company, make workers redundant and transfer outsourced contracts to new providers.
The cost to the taxpayer for making Carillion staff redundant is estimated to be £65 million.
The contractor's two flagship construction projects, the Royal Liverpool hospital and the Midland Metropolitan hospital in Sandwell, were also stopped and have since rocketed in cost.
Unite assistant general secretary Gail Cartmail: "It is staggering that a year after the biggest corporate failure in modern UK history the government has carried on as though it is business as normal.
"The government's failure to take action to ensure that there cannot be similar collapses in the future is a betrayal of workers, who still face being cast on the scrapheap without warning because of irresponsible directors who place profits and shareholder dividends before people.
"The fact that no one involved in Carillion has yet had any form of action taken against them, demonstrates either that the regulators are failing to do their jobs or that existing laws are too weak. If it is the latter then we need better stronger laws.
"Taxpayers were handed a bill of over £150 million to clean up the mess left by Carillion, yet the government has failed to end bandit capitalism in the UK.
"A year on from Carillion's collapse the government needs to stop prevaricating and start taking effective action to drive bandit capitalism out of the UK."
(CM/MH)
UK construction union, Unite has hit out at the government, warning that the inaction is putting jobs at risk and could result in future corporate meltdowns.
Carillion went into compulsory liquidation on 15 January 2018, leaving 3,000 redundant and forcing many if its sub contractors out of business.
The cost to the taxpayer for Carillion's collapse is well in excess of £150 million, much of this money has been paid to accountants PwC, who have been paid in excess of £50 million to act as 'special managers' to break up the company, make workers redundant and transfer outsourced contracts to new providers.
-- Advertisement --
The cost to the taxpayer for making Carillion staff redundant is estimated to be £65 million.
The contractor's two flagship construction projects, the Royal Liverpool hospital and the Midland Metropolitan hospital in Sandwell, were also stopped and have since rocketed in cost.
Unite assistant general secretary Gail Cartmail: "It is staggering that a year after the biggest corporate failure in modern UK history the government has carried on as though it is business as normal.
"The government's failure to take action to ensure that there cannot be similar collapses in the future is a betrayal of workers, who still face being cast on the scrapheap without warning because of irresponsible directors who place profits and shareholder dividends before people.
"The fact that no one involved in Carillion has yet had any form of action taken against them, demonstrates either that the regulators are failing to do their jobs or that existing laws are too weak. If it is the latter then we need better stronger laws.
"Taxpayers were handed a bill of over £150 million to clean up the mess left by Carillion, yet the government has failed to end bandit capitalism in the UK.
"A year on from Carillion's collapse the government needs to stop prevaricating and start taking effective action to drive bandit capitalism out of the UK."
(CM/MH)
Latest Construction News
05/02/2025
Stockport Mayoral Development Corporation (MDC) and ECF, a joint venture between Homes England, Legal & General, and Muse, have selected Vinci as the preferred contractor for Phase 1 of Stockport 8, a £350 million residential development west of Stockport town centre.
The decision follows a competi
05/02/2025
Vistry Group has finalised contracts for a significant housing development in Hinckley, Leicestershire, securing outline planning permission to deliver 475 new homes in the area.
The development, located east of Stoke Road and north of Normandy Way in the town's northern region, has a projected val
05/02/2025
Wilten Construction has been awarded a second Design and Build contract at Gateway 14 by client Gateway 14 Ltd and Jaynic.
The project involves the development of a state-of-the-art, three-storey Skills and Innovation Centre spanning 35,000 sq ft in the heart of Gateway 14. Designed to achieve BREE
05/02/2025
Knowsley Council has approved a major housing development in Kirkby, giving the green light to 800 new energy-efficient homes in the town's centre.
The decision also secures £7.7 million in Section 106 contributions from developer Barratt David Wilson Homes, further boosting local investment.
The
05/02/2025
Keepmoat Homes has announced plans to invest over £50 million in three new housing developments across Calderdale, aiming to deliver more than 200 new homes.
The developments, undertaken in partnership with Calderdale Council, form part of the North Halifax Transformation Programme, a local authori
05/02/2025
Essential renewal work at Skerne Road level crossing in Driffield has been completed. Over a six-day period, engineers replaced decades-old equipment, installing a state-of-the-art operating system, replacing the level crossing deck, and resurfacing the road.
The newly installed operating system is
05/02/2025
Construction firm GRAHAM is currently carrying out essential restoration work at the National Railway Museum in York, replacing the Grade II listed roof structure at Station Hall.
Originally built between 1875 and 1877 as a goods station, Station Hall now houses the museum’s six royal carriages.
05/02/2025
Mezzanine floors are commonly associated with additional storage or expanded floor space, but did you know they can also have a profound impact on employee productivity and morale? At Doity Engineering, we specialise in designing and installing mezzanine floors for
05/02/2025
Construction work is commencing on a new solar array at Weeton Barracks in Lancashire that will generate over one third of the site’s energy needs.
The work has been funded under the British Army’s Project Prometheus, a scheme that is increasing renewable energy across the army estate through inst
05/02/2025
The regeneration of Hartlepool's waterfront has reached a significant milestone with a £631,000 grant from The National Lottery Heritage Fund.
The funding will support the development phase of the 'Tides of Change' project, aimed at transforming the visitor experience at the Museum of Hartlepool a
