Belfast Telegraph

'Lifeline' for Carillion to continue some work in Northern Ireland

By John Mulgrew

Construction giant Carillion may have been granted a temporary lifeline in Northern Ireland, as it's understood the firm has been given a line of credit to continue some of its key operations here.

But subcontractors still face an uncertain future, with potential losses of up to £150,000 in the case of one firm.

"Large scale redundancy" is on the cards, according to trade union Unite, after workers at the infrastructure giant were sent home on Monday when it entered liquidation.

Carillion has three major maintenance contracts with the Northern Ireland Housing Executive (NIHE) worth around £35m a year.

It also has contracts with the Ministry of Defence and Power NI.

It's believed the firm has been granted a lifeline in the form of a line of credit with another Northern Ireland company, which will see it continue key contracts, such as the ones with the NIHE.

The Housing Executive said: "Carillion contracts with the Housing Executive continue to be in operation.

"As the Housing Executive advised yesterday, there has been some disruption to services.

"We apologise for the inconvenience this has caused tenants.

"We have been working with Carillion and other contractors to ensure that heating and repairs are carried out, especially given the cold weather spell."

Carillion employs around 500 staff here, 230 for the NIHE. Its UK workforce is 20,000.

Unions have warned that thousands of workers could lose their jobs.

Firms working for Carillion on private sector contracts will only have Government support untiltoday, Cabinet Office Minister David Lidington has said.

Union leaders met Business Secretary Greg Clark yesterday evening and warned him that their members should not be left to "carry the can" for the failure of the massive business.

GMB general secretary Tim Roache said: "The clock is ticking for Carillion's 8,500 private sector workers."

Belfast Telegraph

Weekly Business Digest Newsletter

This week's business news headlines, directly to your inbox every Tuesday.

Popular