Clearview National February 2018 - Issue 195 - Page 13

INDUSTRYNEWS and Labour MPs sought to blame the government, either for continuing to award contracts to a firm that had reported an interim loss of £1.1bn in September, or conversely for not doing enough to protect employees and suppliers of Carillion. Others urged the government and the parties involved to protect the countless independent contractors working on projects for Carillion, which directly employs 20,000 people. CRISIS HIGHLIGHTS EMPLOYMENT RIGHTS Tax adviser, Qdos Contractor, is calling on the government, along with Carillion’s liquidators, to consider the livelihoods of independent contractors engaged directly and indirectly by the company. Seb Maley, Qdos Contractor CEO, commented: “Each party in Carillion’s supply chain will be impacted hugely by its liquidation. So, this is a hugely worrying time for all independent contractors engaged by the company and its subcontractors. “Much of the attention initially was focused on the threat this puts Carillion’s permanent employees under. But without the safety of employment rights, every independent contractor engaged by Carillion - or through any of its sub-contractor companies - will be fearing for their livelihoods too.” “Together, contractors contribute over £119bn to the economy each year. Amid the confusion and uncertainty, the government and Carillion’s liquidators must consider the wider impact that simply cutting ties with its independent contractors would have on UK contracting and the economy.” SOME PROJECTS STAY ON TRACK Some are offering reassurances that Carillion’s collapse would not be impacting their projects. Work continues for example on the £800m Airport City development in Manchester which is backed by investment from the Manchester Airport Group and Beijing Construction Engineering Group. The government has confirmed it will provide funding to ensure public contracts are completed but will not bail out any private creditors. Speedy, the UK tools, equipment and plant hire services company, is a supplier of hire equipment and services to Carillion. The group told Clearview it was committed to supporting the delivery of projects as planned. In a statement, it said: “It is intended that any profit impact of Carillion’s compulsory liquidation will be recorded as an exceptional non-underlying charge in the income statement for the year ending 31 March 2018. “The impact of Carillion’s situation is not expected to be material to the group which had net debt at 31 December 2017 of £88.9m. The group remains on track to deliver a result in line with expectations for the f ull year.” C L E A RV I E W-U K . C O M » FE B 2018 » 13