Carillion: Insolvency

Cabinet Office written question – answered on 5th February 2018.

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Photo of Marion Fellows Marion Fellows SNP Whip, Shadow SNP Spokesperson (Small Business, Enterprise and Innovation)

To ask the Minister for the Cabinet Office, whether his Department made an assessment of the effect of Carillion's liquidation on the viability of the small businesses in its supply chain in (a) Scotland and (b) the rest of the UK before deciding not to support that company through the bail-out negotiations.

Photo of Oliver Dowden Oliver Dowden The Parliamentary Secretary, Cabinet Office

If small subcontractors are providing public sector services then we are taking steps to ensure the continuity of those services.

If subcontractors are supporting private sector contracts then their future role depends on their customers.

The action we have taken is designed to keep vital public services running, rather bailing out a commercial company.

We are mindful of the concerns of Carillion employees in the private sector and resources are open to these workers and businesses affected by Carillion’s liquidation who are seeking further information, including:

  • a webpage set up by the Insolvency Service for those affected and seeking advice;
  • a dedicated website set up by the Special Managers, PWC, as well as a dedicated helpline;
  • a hotline set up for any employee worried about their pension situation;
  • more general advice on business support is available through the BEIS Business Support Hotline; and
  • Jobcentre Plus, through its Rapid Response Service, also stands ready to support any employee affected by this announcement.

Alongside this a network of 38 Local Growth Hubs, run in conjunction with the Local Enterprise Partnership (LEP), is also on hand to help businesses of all sizes and in all sectors to access support.

This is a private sector company and taxpayers can’t be expected to bail out a private sector company.

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