Originally Posted by
Mambo
Why are you so aggressive ? , I wasnt talking about the CEO - if a company wants to pay their CEO x amount and dividends of xx in the £ - that is entirely their responsibility and their decision - if the board and shareholders arent happy they can get him removed. The main financial 'losers' in Carillion going bust will be the shareholders of the company - and any other companies that are owed money - if they go into liquidation that is.
My point being that as a tax payer - we would be far better that a private company went bust - than get a Govt 'nationalised' dept to implement the projects - just my opinion having worked in both public and private sectors. The Govt can sue / penalise a private company for not delivering on time / to budget , they cant exactly fine themselves or take themselves to court for non delivery of their own project.
Cyril - I know there are contingencies in place on the HS2 contract for this eventuality - how that will work out in practice - Im not sure. I agree with you Carillion's issues seem to be from trying to grow too quickly, paying a high dividend in order to encourage equity investment perhaps - and trying to keep the pension fund afloat, a govt run organisation would have the same pension problem.
I wonder if the Govt are planning a network rail type scenario for Carillion. I think (ironically) under EU law all major infrastructure projects must be put out to tender for anyone to bid for. "Anyone" being private companies or state owned companies.
My mate at Carillion on the HS2 project isnt that concerned - the work still needs to get done - so in all probability he will end up working for the new contractor.
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