Calls for Carillion to be brought back into public control over finance issues
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, education and NHS.
Carillion has a private finance initiative (PFI) agreement with Portsmouth Hospitals NHS Trust which means it is responsible for all maintenance of Queen Alexandra Hospital, in Cosham, and running the car parks.
The firm has met lenders to discuss options to reduce debts, recapitalise and/or restructure the group’s balance sheet.
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.
‘The government must stand ready to bring these contracts back into public control, stabilise the situation and safeguard our public services.’