Carillion: Insolvency

Department for Business, Energy and Industrial Strategy written question – answered on 25th January 2018.

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Photo of Lord Taylor of Warwick Lord Taylor of Warwick Non-affiliated

To ask Her Majesty's Government what measures they are taking to safeguard the wider supply chain of businesses affected by the collapse of Carillion.

Photo of Lord Henley Lord Henley Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

On 18 January my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy chaired the first meeting of a taskforce to advise on the impact on small businesses and employees affected by Carillion insolvency. It will act as a means for government to communicate to those affected by Carillion’s liquidation, including the wider supply chain, assess wider economic impacts and consider how to ensure that employees are provided with the right support to maximise rapid re-employment. The taskforce’s attendees included representatives from leading business bodies, the construction trade sector, unions, banks and government.

In addition, the Secretary of State and my hon. Friend the Minister for Small Business met with leading business and construction trade bodies, representing Carillion’s sub-contractors, to understand the impact of Carillion’s insolvency on the supply chain, and agree actions that could be taken to mitigate this. They will continue to meet regularly these organisations regularly.

The Secretary of State also met major high street lenders to seek assurances that they will not penalise small businesses affected by Carillion’s liquidation. Lenders are contacting customers and, where appropriate, are putting in place emergency measures, including overdraft extensions, payment holidays and fee waivers to ensure those facing short term issues can be helped to stay on track.

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