BEIS to meet again with trade associations for specialist contractors and suppliers amidst fears of domino effect
The government is meeting representatives of Carillion’s supply chain for the second time in 72 hours as it seeks to address the threat of a domino effect amongst smaller firms left high and dry by the firm’s liquidation. Representatives of specialist contractors and products suppliers called for increased protection from the government for Carilion’s private sector supply chain, alarmed at the prospect of a vicious spiral amongst small firms.
Top of the agenda was the government’s decision to offer a grace period of just 48 hours for underwriting Carillion’s private sector work. Representatives of SMEs called for an urgent extension, arguing that companies, particularly smaller ones, could not be expected to arrange transfer of jobs and novate contracts in such a short timeframe.