When Carillion recently collapsed , they had debts of £900 million and a pension deficit of £600 million. Yet year after year, Carillion has paid dividends to their shareholders and are still paying their jettisoned former Chief Executive £660,000 a year.
We are pressing the Government to stop this payment for failure and do much more to prevent companies siphoning off money to the detriment of suppliers, workers and the British taxpayer. Consequently, I have written a letter to the Cabinet Office Minister, asking for an immediate end to these rewards for failure.
Due to the company’s collapse, Carillion’s subcontractors risk being the biggest losers from corporate greed. Labour are urging the Government to ensure viable small businesses don’t go to the wall, costing jobs and livelihoods. I have since written a letter to the Secretary of State for Business, Energy and Industrial Strategy, looking for answers to what actions the Government will take.