In the News
The Collapse of Carillion
15th January 2018
Lots of questions need answering...
Why were Carillion awarded government contracts up until very, very recently? To what extent were the management aware of the financial problems when they were still bidding for contracts?
What are the costs of this to the government? What are the implications for the public finances? What about the macroeconomic effects?
From a microeconomic perspective, is this a classic example of moral hazard? And to what extent is bad management responsible and is this a function of incompetence or misaligned incentives?
Some reactions to the news about the liquidation of Carillion:
Carillion's payouts to shareholders have increased in each of the 16 years since formation of company, boosted by Govt obsession with PFI.
— Caroline Lucas (@CarolineLucas) January 15, 2018
Yet today the company collapses, risking 1000s of jobs & threatening people's pensions.
That's the neoliberal story, right there.
Why the collapse of #Carillion will have a huge impact on life in the UK pic.twitter.com/yCt7JyIRDJ
— ITV News (@itvnews) January 15, 2018
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