Defence support contractor Carillion fighting to stay afloat
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'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.
I suspect that, once the dust has settled, we will see that the finances have been handled in a similar manner to my teenage daughter's piggybank; lots in, even more out.
One wonders whether the RAF's PFI contractors are studying this....
Years ago at an FSTA meeting at Shabby Wood, when the subject of contractor financial stability was raised, the civil serpents dismissed it with the comment "No government PFI contractor will ever be allowed to go bust...."
Today Carillion, but how looks the future for the nonsense of MFTS now?
Years ago at an FSTA meeting at Shabby Wood, when the subject of contractor financial stability was raised, the civil serpents dismissed it with the comment "No government PFI contractor will ever be allowed to go bust...."
Today Carillion, but how looks the future for the nonsense of MFTS now?
They're not struggling to stay afloat any longer, that's the good news. The bad news is, the stern is about to slip below the waves and that'll be it.
FB
FB
Years ago at an FSTA meeting at Shabby Wood, when the subject of contractor financial stability was raised, the civil serpents dismissed it with the comment "No government PFI contractor will ever be allowed to go bust...."
Financial stability of contractors used to be a big deal. But at around the same time, a major contractor approached MoD to warn it was not going to make a profit on a major project. The project team was gathered and told to get off the company's back, they could deliver late and if it didn't work, that's ok. Senior staff approved the waiving of key elements. But there's certain things you can't just waive, as the aircraft can't fly. Westland did the work and billed the prime at the end of the job. They made an even bigger loss after that.
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What Messrs T&G B did with their PFI initiative was to privatise the profit and the State own the risk - brilliant!!
We reap what we sow - taxpayers to note.
mcdhu
We reap what we sow - taxpayers to note.
mcdhu
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Re your #42 Beage. The amount being charged by Tanker must well exceed the cost of delivery so they should be OK. Does anyone know if they are in profit and what sort of dividends are being paid out to shareholders or Bonuses paid out.
I note in the case of Carillion execs bonuses were protected and shareholders received a divi even though the company were in the S#1t
I note in the case of Carillion execs bonuses were protected and shareholders received a divi even though the company were in the S#1t
Thread Starter
What are the odds - Op LIGHTBULB? Deployment of military personnel to support Defence infrastructure and estates.
Look on the bright side, get a squaddie in to fix your lightbulb and you might end up with Sky Atlantic bodged into your accommodation!
Look on the bright side, get a squaddie in to fix your lightbulb and you might end up with Sky Atlantic bodged into your accommodation!
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As for Sky, add elec, gas, broadband to the...cough...menu.
Amazed to see a government minister on the BBC reassuring Carrilion workers that those working on public programmes will still be paid and should continue to work as normal.
Meanwhile back in the real world Carrillion workers have had credit lines stopped, their procurement cards stopped, trade accounts suspended and leased assets withdrawn. I'm not sure if the minister understands what liquidation means or what happens to the assets that these workers depend on.
On the subject of 'liquid' a Carrillion worker on public contract found himself having to pay out of his own pocket for a full tank of diesel for his work van as the company payment card had been blocked this morning.
Meanwhile back in the real world Carrillion workers have had credit lines stopped, their procurement cards stopped, trade accounts suspended and leased assets withdrawn. I'm not sure if the minister understands what liquidation means or what happens to the assets that these workers depend on.
On the subject of 'liquid' a Carrillion worker on public contract found himself having to pay out of his own pocket for a full tank of diesel for his work van as the company payment card had been blocked this morning.
Gnome de PPRuNe
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Meanwhile back in the real world Carrillion workers have had credit lines stopped, their procurement cards stopped, trade accounts suspended and leased assets withdrawn. I'm not sure if the minister understands what liquidation means or what happens to the assets that these workers depend on.
Direct from a few puzzled Carrillion workers as they did indeed come to work this morning. They pointed out that without the ability to lease heavy equipment or purchase consumables they will be at work-stop very quickly. They were also aware that a lot of these companies / sub-contractors had not been paid for a while and may also go to the wall.
Gnome de PPRuNe
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OK, thanks for that.
Thread Starter
Well the cleaning staff in my Mess don’t appear to have been around today. Interesting to see if it’s a one off and things settle down with the Govt line that public service contracts will keep running or whether that’s it despite Govt assurances.
ITV's Robert Peston is quoted as saying:
I also read from the BBC:
Perhaps this will include the absurdity of MFTS?
Carillion’s collapse is the definitive end of Tory and New Labour governments 25-year love affair with private provision of public services.
A Commons committee has announced it will hold an inquiry into government outsourcing following the demise of Carillion.
Bernard Jenkin, chair of the Public Administration and Constitutional Affairs Committee, said it would look at the "lessons to be learned from the collapse".
It will also look at wider issues in Whitehall around public procurement, IT and the relationship with non-public sector bodies.
Bernard Jenkin, chair of the Public Administration and Constitutional Affairs Committee, said it would look at the "lessons to be learned from the collapse".
It will also look at wider issues in Whitehall around public procurement, IT and the relationship with non-public sector bodies.
Direct from a few puzzled Carrillion workers as they did indeed come to work this morning. They pointed out that without the ability to lease heavy equipment or purchase consumables they will be at work-stop very quickly. They were also aware that a lot of these companies / sub-contractors had not been paid for a while and may also go to the wall.
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I lost my job in 1972 in the wake of the R_R debacle. We were not sub contractors to R-R, but a lot of people we subcontracted to were. They went bust as their bills were not paid. We lost several irreplaceable sources of highly specialised engineering and we eventually went bust as well as we could not fulfil our contracts. Watch for the ripples of this Carillion collapse as they spread through the little firms, who worked for the bigger firms, who worked for Carillion. This is going to be a bloodbath.
