Carillion: Insolvency

Cabinet Office written question – answered on 4th December 2018.

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Photo of Baroness McDonagh Baroness McDonagh Labour

To ask Her Majesty's Government, further to the speech given by the Chancellor of the Duchy of Lancaster at the Business Services Association Annual Chairman’s Dinner on 19 November, what "key information’ would have "smoothed the management of liquidation" following the collapse of Carillion.

Photo of Lord Young of Cookham Lord Young of Cookham Lord in Waiting (HM Household) (Whip), Lords Spokesperson (Cabinet Office)

The Government maintained the continuity of key public services after Carillion announced its decision to initiate insolvency proceedings in January 2018. The Official Receiver was appointed by the court as liquidator, along with PwC as Special Managers.

The Government took immediate action to minimise the impact on employees and employers by providing reassurance that those working on public sector contracts would continue to be paid and providing the necessary funding required to maintain public services while Carillion’s public sector contracts were transferred to alternative providers.

In future we will require, all providers of critical services to provide sufficient management information, for example, corporate structure, intra-group trading arrangements and dependencies (including details of shared services), key subcontractor and workforce information.

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