The collapse of Carillion marks a watershed moment in British politics. Now is the time to end the rip-off privatisation policies and outsourcing that cost the public billions of pounds and which allow private companies to cream off the profits and then leave chaos in their wake.
The government must act quickly to bring these public sector contracts back in-house to protect public services and ensure employees, supply chain companies, taxpayers and pension fund members are protected.
The MEN has highlighted 10 schemes in Greater Manchester which could be affected by the collapse of Carillion (see http://www.manchestereveningnews.co.uk/…/carillion-work-in-…). The company also had contracts with several schools in Rochdale borough to manage their facilities.
Given that £2billion worth of government contracts were awarded in the time since Carillion started issuing profit warnings, a serious investigation needs to be launched into the government’s handling of this matter.
It is vital that shareholders and creditors are not allowed to walk away with the rewards from profitable contracts while the taxpayer bails out loss-making parts of the business.
We need to start putting the needs of the many before the profits of the few.