CALLS FOR CONTINUATION OF CARILLION SUBCONTRACTS

19th February 2018

SNP SMALL BUSINESS SPOKESPERSON CALLS FOR GOVERNMENT INTERVENTION

Marion Fellows, MP for Motherwell and Wishaw and the SNP’s Westminster Small Business spokesperson, has called on the UK Government to ensure that the new contractor taking over from Carillion ensures subcontracts are maintained to ensure stability for small businesses and prevent job losses.

In a letter to Ministers, the MP said that “Carillion’s collapse has caused great uncertainty for many companies and their workers – especially SMEs”.

Mrs Fellows also said that the UK Government must provide assurances to companies that have already undertaken work for Carillion that they are paid for the work they have completed.

She was critical of Carillion saying affected companies should not “pay the price for Carillion’s mismanagement and greed which has the potential to create a black hole that sucks other companies with it into financial difficulty”.

Commenting, Marion Fellows said:

The employees and businesses, particularly SMEs, need reassurances. It is not good enough for the UK Government to simply allow people to face such financial uncertainty through an ideological obsession to not intervene.

It must be a mandatory stipulation that any new contractor must continue to the meet the agreements Carillion made with subcontractors. Many firms will be relying on the work they had planned as a subcontractor with Carillion and it must go ahead. If not, the future for many businesses and their workers is uncertain.

While the Official Receiver is currently assessing Carillion and trying to pay all contractors, the UK Government must still ensure that those who have carried out the work are paid for doing it.

The Carillion crisis happened on the UK Government’s watch and they must take a personal and moral responsibility to sort the problem.

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