Rail jobs, staff issues and training


Network Rail confirms pay-out to 300 suppliers over Carillion collapse

Network Rail has today confirmed that it will be paying out arrears on around 300 of the rail contracts Carillion was involved in before going into liquidation.

The infrastructure manager says its agreement to pay many “small rail suppliers” covers a period between Christmas and 15 January.

It follows other measures from Network Rail to cover the failure of the construction giant, including the announcement last week that it would be covering the wages of former employees until Easter.

Carillion went into liquidation in mid-January, just days after RTM reported that the UK’s Financial Conduct Authority (FCA) would be investigating the firm for its poor record and timeliness in relation to certain announcements made between 2016 and 2017.

Today’s announcement comes after a deal was agreed between Network Rail and PwC, which the Official Receiver appointed to manage the remaining Carillion contracts.

Commenting on the decision, Matthew Steele, commercial director at Network Rail, said: “We recognise how challenging this period has been for our small suppliers. We hope that this will be some positive news to the hundreds of smaller companies up and down the country who have been worried about the impact on their business.

“These small organisations are a critical part of our supply chain both now and in the future. PwC, together with our in-house task force and the Carillion teams, are carefully managing this difficult period to keep all our rail projects going, and are working hand-in-glove to find ways to support staff and suppliers alike.”

Although the announcement was officially made today, Network Rail has confirmed that it could take a number of days for the full payment process to begin.

For other large suppliers the organisation is in ongoing discussions with PwC to explore potential options to deal with the arrears still owed.

Top image: Joe Giddens PA Wire

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Jon   29/01/2018 at 09:12

Nice to see the taxpayer propping up our private sector again... do wonder where the money will be coming from.

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