No doubt many of you will have read about the collapse of Carillion this week. A private sector business dealing with public sector contracts went into liquidation after racking up debts of £1bn and a £500m pension deficit. Whilst the ‘how and why’ is yet to be established, the knock on effects are already starting to become clear.
Part of that knock on effect is the number of Manchester based companies that will be affected by Carillions collapse. It has been estimated that up to 110 firms were involved with over 100 construction projects which could affect up to 5,000 employees.
Whilst many of the public projects are to receive government funding to ensure there is no disruption to the public, the firm is also a partner in a number of private contracts which will not receive a tax payer bail-out. These projects help form a key part of Greater Manchester’s business chain and all could be affected by the collapse.
Andy Burnham, Mayor of Greater Manchester, states “Carillion going into liquidation is of major concern and I am seeking urgent clarity from the Government on what action they are going to take to secure both jobs and projects in Greater Manchester.” He and other departments are determined to keep its impact to a minimum.
Projects that may be affected by Carillions collapse include; The HS2 railway, the M6 Smart Motorways project, the Manchester to Preston electrification, Airport City, Angel Gardens, the First Street office block, the Fallowfield student residence project, Rochdale & Tameside schools and the Manchester Magistrates court.
Carillion are, or have been, involved with all these projects, either in a construction capacity or to provide services such as catering or security. Whilst many of the projects were done in conjunction with other firms which should hopefully shoulder much of the burden, the removal of Carillion from the equation will make times very tough for those left picking up the pieces.
