Is the Paradigm of True Blue Capitalism Infallible?

Joshua Tree · Jan 16, 2018

Er, no.

Chairman of bankrupt Carillion firm was a 'Corporate Responsibility Advisor' to Theresa May | Evolve Politics

In news that emphasises the sheer scale of incompetence at the top of our government, it has been revealed that the Chairman of the now bankrupt government contractor Carillion, Philip Green (not that one), was an advisor to Theresa May on ‘corporate responsibility’.
Click to expand...

Broadly, Carillion overreached, trying to expand beyond its means. This attempt culminated in its unsuccessful bid to acquire Britain’s biggest construction firm, Balfour Beatty. Hedge funds and short sellers began noticing Carillion’s shaky foundations and toppling hubris as early as 2013.

Overreach, coupled with the fact that large contracts proved to be less lucrative than originally thought (they were slashed by £845mn last year) conspired towards borrowing that ballooned from £218m in 2016 to over £900m in 2017.

Carillion was responsible for £16bn worth of Government contracts, and the provision of essential public services relied on its viability. This includes support services, such as hospital cleaning; the company is also the largest manager of military bases for the Ministry of Defence and oversees the provision of essential railway maintenance for our privatised train services; it also provides school dinners and prison maintenance.

The level of conflict of interest inherent in the Chairman of one of the largest Government contractors being the corporate responsibility advisor to Theresa May is so flagrant it is worth restating:

Philip Green, the Chairman of Carillion, a Private Multi-service corporation on which the Government relied to deliver essential public services, and which ran up millions of pounds in debt to fund its overreach, was the advisor on corporate responsibility to Theresa May.
Click to expand...

The Tories always preach from a stance that their economic model is their strongest point. Fine, until it goes wrong, which it tends to do in spectacular ways. Don't trust the Left, they'll fuck the economy. So let's just sweep all these massive corporate failures under the carpet then and forget they ever happened.

Log in or Sign up

Is the Paradigm of True Blue Capitalism Infallible?

Joshua Tree Remain In Light

Share This Page

Log in or Sign up

Is the Paradigm of True Blue Capitalism Infallible?

Joshua Tree Remain In Light

Share This Page

Useful Searches