Public services 'will be protected' after Carillion collapse

"Despite the extremely well publicised financial difficulties Carillion has been experiencing in recent months, the government continued to award it contracts, disregarding its own risk management policies in the process".

Employing 43,000 people around the world, including 20,000 in Britain, Carillion has been fighting for survival since July when it revealed it was losing cash on several projects and had written down the value of its contract book by 845 million pounds.

Jonathan Ashworth, Shadow Health Minister, said: "I think we do need that clarity from the Government".

"As part of this engagement, Carillion also asked those stakeholders for limited short term financial support, to enable it to continue to trade whilst longer term engagement continued." .

Jenkin said: "You've got to treat yourself much more as a branch of the public service, not as a private company just there to enrich the shareholders and directors".

The Scottish Government has confirmed it is in talks with United Kingdom counterparts and liquidators to work out how best to support Carillion employees and contracts.

Unions warned that thousands of jobs, and workers' pensions, were in danger of being "dragged under" by another bout of "reckless corporate irresponsibility".

"The Council entered into a partnership agreement with Carillion AMBS in 2014 for a period of ten years to deliver property services including Estate, Asset and Facilities management and to work together to deliver a number of key development services".

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An application was made to the High Court for a compulsory liquidation of Carillion earlier today, 15 January. The Official Receiver's costs will be passed onto the taxpayer.

Lidington urged all affected employees to go into work and assured them they would continue to be paid.

Carillion needed £300m of short-term funding to survive, but its bankers were reluctant to commit to any lending without support from the government, Sky News reported.

An order has been granted to appoint the Official Receiver as the liquidator of Carillion.

"Carillion is a textbook example of the failures of privatisation and outsourcing". The construction and services company is working on major public works projects, such as the HS2 rail line in northern England, while also maintaining prisons, cleaning hospitals and providing school lunches.

"Workers, taxpayers and public service users could well be left to carry the can". The government will fund existing public services contracts.

Philip Green, the company's chairman, said: "This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years". It collapsed beneath a mountain of debt worth £900 million and a pension deficit of nearly £600 million.

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