[News] Carillion crisis - taxpayer bailout?

[The Antikythera Mechanism]

The writing has been on the wall for Carillion for a long time. Years ago they forced their sub-contractors onto 120 day payment terms, so we stopped working for them then.

Its a shame its come to this especially after Carillion evolved from the famous British construction companies, Tarmac Construction, Wimpey Construction, Cubitts and Mitchell Construction.

 

[Bob!]

Private companies make profit they keep it. Private companies make losses and the state bails them out like the banks. That is how capitalism works, trebles all round for the fat cat bosses !!!!

How about Nationalising them?

surely there could be a state building Company?

 

[Official Old Man]

You talk about all the suppliers down the chain. But if a company is on the brink of collapse, would these suppliers still send lorry loads of stock to them thinking that they may not get paid?
If I had a container lined up to go out today I'd be asking for cash up front.

 

[portslade seagull]

So we're going to end up footing the bill, basically?

A bit like that banks then but they cost way more

 

[worthingseagull123]

Let them go.

Where was govt bailout of BHS, Woolworths, Monarch, Rover etc.

Some other firms will pick up what is left.

 

[blockhseagull]

Let them go.

Where was govt bailout of BHS, Woolworths, Monarch, Rover etc.

Some other firms will pick up what is left.

It’s more than other companies picking them up

It’s the supply chain customers who will be owed thousands, maybe even hundreds of thousands who will go under

 

[blockhseagull]

You talk about all the suppliers down the chain. But if a company is on the brink of collapse, would these suppliers still send lorry loads of stock to them thinking that they may not get paid?
If I had a container lined up to go out today I'd be asking for cash up front.

They will owe trades and suppliers from 6-9 months ago, it’s not about what they’ve been supplied in last month.

 

[Weststander]

You talk about all the suppliers down the chain. But if a company is on the brink of collapse, would these suppliers still send lorry loads of stock to them thinking that they may not get paid?
If I had a container lined up to go out today I'd be asking for cash up front.

Don't smaller suppliers get in a trap? They are owed money, but are drip fed (late) payments and keep supplying in the hope things work out. In addition, it's rare that PLC's as large as Carillion enter insolvency.

 

[Fitzcarraldo]

Thanks, I'm a bit dim so nice to have it explained.

What about the pension deficit?

Not quite so easy to answer it would seem. Presumably what he means is that yes, taxpayer will be funding the pension deficit.

 

[blockhseagull]

Been given far too much central government work, they aren’t the only ‘big player’ in trouble currently

That’s what happens when you bid for work with no margin and try to squeeze the supply chain to make it pay who are themselves working on tight profit margins.

 

[Fitzcarraldo]

Been given far too much central government work, they aren’t the only ‘big player’ in trouble currently

That’s what happens when you bid for work with no margin and try to squeeze the supply chain to make it pay who are themselves working on tight profit margins.

What is the alternative?

 

[virtual22]

If we do bail them out the Government should take control of all the company shares, thats the risk shareholders take when they invest in a company. Secondly, all the directors should be made bankrupt, all personal assets seized and then investigated to ensure they have not failed in their director duties. It should not be another bank bailout where those in charge just walked away with everything and no one was prosecuted. There should also be an investigation into the handing out of Government contracts to a company which was obviously in financial difficulties. If it's found that these people have not done their jobs properly they should lose their jobs.

Way too many times these things happen and people just get away with it.

 

[blockhseagull]

What is the alternative?

A group of contractors who are part of a framework contract, works at a local council level

 

[Blue3]

Let them go.

Where was govt bailout of BHS, Woolworths, Monarch, Rover etc.

Some other firms will pick up what is left.

If we lived in a truly Capitalist society then letting them fail is the correct answer but we don't we live in a society run by and for the benifit of the Establishment, while a collective society might also bail out the company but and here is the difference not for the Benifit of the few

 

[GT49er]

If we bail them out through nationalisation, I would say that was fair enough - so long as it was then clear that we, the tax payers, own it, and don't have to give it back, or pay off inept directors with huge multi-million pound sums. Ever. And future profits will go to the Treasury, not shareholders.

In the same way as we should still own RBS now it is back in the black again (I believe).

 

[Blue3]

If we bail them out through nationalisation, I would say that was fair enough - so long as it was then clear that we, the tax payers, own it, and don't have to give it back, or pay off inept directors with huge multi-million pound sums. Ever. And future profits will go to the Treasury, not shareholders.

In the same way as we should still own RBS now it is back in the black again (I believe).

RBS along with Lloyds are good examples of the Establishment supporting an Establishment company with tax payers money once these business return to profit the Establishment returns the buissnress to the Establishment and the tax payer hopefully gets its money back it's a form of Nationalisation but unlike the nationalised industries of old this nationalising is for the benifit of the few, Carrilion is likely to go the same way the tax payer takes the risk but ultimately the Establishment receives the benifit sadly the tax payer is oftern cut out of this process as the shares are not sold back onto the market in numbers that the public can afford as such in reality only the Establishment is able to buy them back its the Establishment supporting the Establishment for the benifit of the Establishment using tax payers money

We have a set of national crisis which a nationalised bank supporting a nationalised construction company could and should be set to work building our way out of the current problems we need homes, roads, schools, hospitals, railways, airports and the land required to build upon with two thirds of the country owned by the Establishment they need to be encouraged as part of bailouts to donate some of this land If as a nation we could obtain just 0.1% of it at zero cost we could begin to turn the country onto the path of recovery

 

[GT49er]

RBS along with Lloyds are good examples of the Establishment supporting an Establishment company with tax payers money once these business return to profit the Establishment returns the to the Establishment and the tax payer..............

I think that's in English........but not as we know it...................

 

[Blue3]

I think that's in English........but not as we know it...................

Fair point have corrected