O/F'ing/T Carillion

[animallittle3]

They can't be bailed out by the taxpayer , the same as Virgin rail shouldn't be because that's Socialism .

Now according to the Tory government this is something they oppose strongly because it's bad for you the consumer .

Capitalism exists so that the wheat is removed from the chaff , poor businesses are eradicated and the good one's provide great products or services that are profitable , the market is the judge and jury .

No Virgin Rail and Carillion are poor companies who are hemorrhaging money and bad for you the consumer so their problems are not the tax payers problems in a capitalist state .

I have yet to hear Richard Branson offer free rail tickets to the taxpayer during profitable times and neither have Carillion offered to build affordable housing FOC .

So don't dump your failed capitalist model on me and millions of UK taxpayers , sort your own mess out .

[mellowmiller]

If the government do bail out Carillion, then what?
It could be the start of a slippery slope with other failing companies feeling they can legitimately put claims in for government aid so how would it be decided which ones get help and which ones don't?
Carillion have to find their own solutions to the problems they have created and it may entail breaking up the company and selling off contracts to other interested parties.
It used to be illegal under EU law for national governments to bail out private companies but I'm not sure if that is still the case.

[one_a_day]

They are one of the largest FM companies around. Who do you think does the plumbing, the electrics, the air con, the fire alarms, the lifts, the security etc in the buildings that they do the FM for? It’s not Carillion, it’s all sub-contracted out to smaller businesses who cannot afford to take a hit.

I repeat, the government need to do something.

[flourbasher]

I used to work for Carillion or more specifically one of the companies that they acquired a while ago.
So part of my pensionable income is now a risk.
I also still have friends who work there.
Troubled times.

However, I have mixed views and whilst I don't want to lose some of my future pension I don't see why the taxpayer should pay.
After all, the taxpayer hasn't received a slice of their profits (save the minority who may have shares) when they were doing well.

[animallittle3]

I'm simply quoting from the capitalist / neoliberal play book , the rules of the western world .

From where I'm standing what is getting proposed would be the equivalent of Jeremy Corbyn privatizing the NHS .

[kempo]

In liquidation today.

My post 20 explains it all.

Maybe the Government will explain why they continued to give contracts to an obviously failing company who had given several profit warnings and was top of the League table of shorted companies.

[frogmiller]

They've gone into liquidation. The company will stop trading when all of the salable parts have been identified and sold.

The contracts that are run on behalf of the government and have salaried personel will be paid. The government will pay the liquidator and tey'll then pay them.

Banks are owed £900m and other companies are owed huge sums with their overal debt being estimated in the region of £1.6b.


It isn't good.

[flourbasher]

Carillion pension schemes transfer to industry lifeboat

Around 28,000 members of Carillion’s 13 UK pension schemes will now be transferred to the Pension Protection Fund, the industry lifeboat for collapsed companies. Pension scheme members who are transferred to the PPF, and not yet retired, will receive 90 per cent of the pension they were expecting, up to a cap.

Members already receiving their pensions will continue to receive 100 per cent of their benefits, but may see lower annual increases. The pension which a surviving spouse may inherit may also be smaller. Of the 28,000 members, 12,000 are pensioners. The Carillion pension scheme will be one of the largest the Pension Protection Fund has had to take over. In 2017, the Company reported its pension deficit at £587m, but John Ralfe, an independent pensions expert, estimates the actual hit to the PPF will be much higher at around £800m.

The PPF currently has cash reserves of £6bn and around £28bn in assets. Over the last financial year it took on 12,000 members bringing the total number of people who have transferred to 235,000. Of those, just over half, 128,000 are currently in receipt of compensation.

[loyalmiller]

Carillion's site on Magna Way was open as usual today, I know because I delivered to them.

They're working on the tram/rail link at that site.

[millmoormagic]

Carillion pension schemes transfer to industry lifeboat

Around 28,000 members of Carillion’s 13 UK pension schemes will now be transferred to the Pension Protection Fund, the industry lifeboat for collapsed companies. Pension scheme members who are transferred to the PPF, and not yet retired, will receive 90 per cent of the pension they were expecting, up to a cap.

Members already receiving their pensions will continue to receive 100 per cent of their benefits, but may see lower annual increases. The pension which a surviving spouse may inherit may also be smaller. Of the 28,000 members, 12,000 are pensioners. The Carillion pension scheme will be one of the largest the Pension Protection Fund has had to take over. In 2017, the Company reported its pension deficit at £587m, but John Ralfe, an independent pensions expert, estimates the actual hit to the PPF will be much higher at around £800m.

The PPF currently has cash reserves of £6bn and around £28bn in assets. Over the last financial year it took on 12,000 members bringing the total number of people who have transferred to 235,000. Of those, just over half, 128,000 are currently in receipt of compensation.

Nice to see there's some kind of safety net for those unfortunate to be embroiled in this.