Kevin McLoughlin, managing director of K&M Decorating in Islington, told City News the response from the government towards the collapse of Carillion so far has left little to be desired.
He says that the government caused the collapse by allowing “the allowed companies to trade if they were insolvent. They gave them contracts – you cannot let contracts that big without looking at the accounts, that’s a fact.”
“They’ve not considered the full impact of what they’ve done. They created this system.”
This comes after a Conservative MP, David Lidington, revealed to a panel of MPs on Wednesday that the government has already spent £150m financing the construction giant’s wind down.
Lidington told a parliamentary liaison committee that the Treasury had provided an initial £150m to the Official Receiver, who is responsible for overseeing Carillion’s liquidation. The aim of this is to cover the cost of keeping some services which had been ran by the company and legal fees.
He also revealed he couldn’t rule out more money being spent, whilst adding the money “wasn’t a definite cost to the public purse.”
Despite the Tory MP’s unhappiness with the government’s actions, McLoughlin remains optimistic for the future. He believes that lessons learnt after Carillion’s collapse should mean there’s room for change for the better.
He told City News that “if procurement changed and people start looking differently at what they value rather than just the bottom line, then businesses who invest in their own business should benefit from it”.
“But we’ve got connections around the country and there’s a lot of [businesses] hurting […] in time we will see the full impact of this.”
The fallout following the Carillion collapse continues to have knock-on effects across the country. Further job losses were announced last weekend.
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HeadlineGovernment Response To Carillion Crisis “Wholly Inadequate” – Say London Businesses
Short HeadlineLondon business: government response to Carillion crisis "inadequate"
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Kevin McLoughlin, managing director of K&M Decorating in Islington, told City News the response from the government towards the collapse of Carillion so far has left little to be desired.
He says that the government caused the collapse by allowing “the allowed companies to trade if they were insolvent. They gave them contracts – you cannot let contracts that big without looking at the accounts, that’s a fact.”
“They’ve not considered the full impact of what they’ve done. They created this system.”
This comes after a Conservative MP, David Lidington, revealed to a panel of MPs on Wednesday that the government has already spent £150m financing the construction giant’s wind down.
Lidington told a parliamentary liaison committee that the Treasury had provided an initial £150m to the Official Receiver, who is responsible for overseeing Carillion’s liquidation. The aim of this is to cover the cost of keeping some services which had been ran by the company and legal fees.
He also revealed he couldn’t rule out more money being spent, whilst adding the money “wasn’t a definite cost to the public purse.”
Despite the Tory MP’s unhappiness with the government’s actions, McLoughlin remains optimistic for the future. He believes that lessons learnt after Carillion’s collapse should mean there’s room for change for the better.
He told City News that “if procurement changed and people start looking differently at what they value rather than just the bottom line, then businesses who invest in their own business should benefit from it”.
“But we’ve got connections around the country and there’s a lot of [businesses] hurting […] in time we will see the full impact of this.”
The fallout following the Carillion collapse continues to have knock-on effects across the country. Further job losses were announced last weekend.
