The government will
continue to deliver all public sector services following the insolvency of
Carillion PLC.
David Lidington, Minister for the Cabinet
Office and Chancellor for the Duchy of Lancaster, announced the government will
continue to deliver all public sector services following the insolvency of
Carillion PLC.
After meeting with
their bankers and lenders, Carillion has announced its decision to initiate
insolvency proceedings. The Official Receiver has been appointed by the court
as liquidator along with partners at PwC that have been appointed Special
Managers.
Government will
provide the necessary funding required by the Official Receiver to maintain
public services.
Those already
receiving their pensions will continue to receive payment. A dedicated web page
and helpline have also been set up for workers who may be concerned or have
questions about their personal situation.
David Lidington CBE
MP said: "It is regrettable that Carillion has not been able to find
suitable financing options with its lenders but taxpayers cannot be expected to
bail out a private sector company.
"Since profit
warnings were first issued in July, the Government has been closely monitoring
the situation and has been in constructive discussion with Carillion while it
sought to refinance its business. We remained hopeful that a solution could be
found while putting robust contingency plans in place to prepare for every
eventuality. It is of course disappointing that Carillion has become insolvent,
but our primary responsibility has always been keep our essential public
services running safely.
"We understand
that some members of the public will be concerned by recent news reports. For
clarity – All employees should keep coming to work, you will continue to get
paid. Staff that are engaged on public sector contracts still have important work
to do.
"Since its
inception in the 1990s private finance has helped to deliver around £60 billion
of much-needed capital investment in infrastructure in the UK across a range of
projects and we will continue to maintain partnerships with responsible firms in
future."
