Construction company collapses

CARILLION, the construction giant that built QA Hospital, has announced that it is going into liquidation.

Monday, 15th January 2018, 8:30 am
Updated Monday, 15th January 2018, 8:36 am

Thousands of jobs are now threatened at the UK’s second biggest construction company.

Carillion has a private finance initiative (PFI) agreement with the trust which means it is responsible for all maintenance of Queen Alexandra Hospital, in Cosham, and the running of its car parks.

The firm recently went into talks with the government to reach a deal but this is said to have fallen through and banks are refusing to lend more money.

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With 20,000 staff working in the UK alone, it is not yet clear who will be affected.

To maintain the public sector projects run by the company, the government is moving swiftly to provide funding amid fears they could plunge into chaos.

As well as building QA, Carillion is responsible for maintaining 50,000 homes for the Ministry of Defence, is the second biggest supplier of maintenance services to Network Rail and is currently involved in the HS2 high-speed rail line plan.

Carillion chairman Philip Green 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.

‘In recent days, however, we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision.’

General secretary of the Rail, Maritime and Transport (RMT) union, Mick Cash called the news ‘disastrous’. He said: ‘This is disastrous news for the workforce and disastrous news for transport and public services in Britain.

‘The infrastructure and support works must be immediately taken in house with the workforce protected.’