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CarillionAmey Insist Military Housing Will Not Be Affected By Carillion Collapse

CarillionAmey is responsible for 50,000 homes used by armed forces personnel and their families...

Army Housing

CarillionAmey has insisted that its services will not be affected by the collapse of one of its parent companies, Carillion.

Carillion said crunch talks over the weekend aimed at driving down debt and shoring up its balance sheet had failed to result in the "short-term financial support" it needed to continue trading while a deal was reached.

CarillionAmey is responsible for 50,000 homes used by armed forces personnel and their families, but it has said it will continue to operate as normal, despite the financial position of Carillion.

In a statement, CarillionAmey said:

"There is a considerable amount of press coverage regarding Carillion’s current financial position, however, the impact on CarillionAmey’s operations remains limited and we will continue to deliver services as normal.

"CarillionAmey Limited and CarillionAmey (Housing Prime) Limited are two separate legal entities and operate almost entirely independently from our parent companies.

"Both CarillionAmey entities get paid directly by our customers and have our own banking facilities, therefore we have no concerns about our ability to continue to operate our businesses and our staff and suppliers will continue to be paid as normal.

"Furthermore, the infrastructure is in place to ensure we can continue to deliver for our customers, which our staff and suppliers will continue to do."

The British Army tweeted that the collapse "has no direct impact on services provided directly to those working for Armed Forces or their families":

Sir Jonathan Woodcock, Second Sea Lord and Deputy Chief of Naval Staff, also took to Twitter to reassure Royal Navy personnel:

Carillion crash CREDIT PA
Picture courtesy of PA.

Carillion's Collapse

Carillion, which has been struggling under £900 million of debt and a £590 million pension deficit, employs 20,000 workers across Britain.

Chairman Philip Green said: "We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers."

The company is understood to have public sector or public/private partnership contracts worth £1.7 billion.

As a result, the Government has been under increasing pressure to intervene to prevent the collapse of the company.

Building HS2 CREDIT Carillion
Carillion's contracts include maintaining army base homes for the Ministry of Defence, providing school dinners, cleaning and catering at NHS hospitals and construction work on rail projects such as HS2 (Picture courtesy of Carillion).

Unions are calling for urgent reassurances over the jobs, pay and pensions of thousands of workers following the "disastrous" news.

Officials from several unions representing workers on the railways, construction sites, prisons, hospitals and schools are seeking information from the company and ministers.

Rail, Maritime and Transport (RMT) union General Secretary Mick Cash said: "This is disastrous news for the workforce and disastrous news for transport and public services in Britain. (...)

"The blame for this lies squarely with the Government who are obsessed with out-sourcing key works to these high risk, private enterprises.

"RMT will be demanding urgent meetings with Network Rail and the train companies today with the objective of protecting our members' jobs and pensions.

"The infrastructure and support works must be immediately taken in-house with the workforce protected.

"Transport Secretary Chris Grayling and his Tory colleagues must be forced to take responsibility for this crisis which is wholly of their making."

Carillion had met with lenders HSBC, Barclays, Santander and Royal Bank of Scotland on Wednesday to discuss options for reducing debts, recapitalise or restructure the group's balance sheet.

It was followed by a meeting on Friday between the Government, pension authorities and stakeholders in an attempt to thrash out a rescue package for the firm.

A petition launched over the weekend calling for Carillion to be nationalised had attracted more than 1,300 signatures.

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