THE collapse of Carillion will cost taxpayers an estimated £148 million and have a significant impact on workers, investors and firms which supplied it with goods.
The National Audit Office (NAO) report said it could take years to establish the final cost of the liquidation, while the £2.6 billion pension liabilities will have to be compensated through the Pension Protection Fund. A report into the UK Government’s handling of the crisis said Carillion’s non-government creditors are unlikely to recover much of their investment.
Labour’s Frank Field, chairman of the Work and Pensions Committee, said: “This invaluable report adds new weight to what we found: Carillion hoodwinked the Government as they did many others who were so naive as to trust their published accounts.
“But the NAO’s explanations of why common or garden UK public sector construction contracts failed betray extraordinarily negligent planning.
“It is difficult to shake the impression that this was conscious cash-chasing, bugger the long-term consequences and bugger the interests of suppliers, workers and pensioners.
A Cabinet Office spokesperson said: “Throughout this process, the Government has been clear that its priority is to ensure that public services continue to run smoothly and safely. The plans we put in place have ensured this, and we continue to work hard to minimise the impacts of the insolvency.”
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