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>> UK construction giant, Carillion, lies on the scrap heap. The firm is set to go into liquidation after talks of lenders and the government failed to reach a rescue deal. And unstable mix of delays and a slump in business, leaving it with a debt pile of 1.5 billion pounds.
Over 40,000 global jobs could now be at risk. Reuter's Kate Holten says in some senses it's a legacy of industry-wide problems.>> During the downturn, a lot of the big outsourcing companies took on work at very thin margins in order to keep the work coming in, they promised they could do it very cheaply.
A lot of those contracts are fixed price contracts that run for a long period of time. And with a lot of these contracts, as we always say, there are delays involved, and that means that they make no money on them at all.>> The 200-year-old titan has been behind major global infrastructure projects, including London's Royal Opera House and Toronto's Union Station.
Last year, it was named one of the contractors to build a high-speed rail network connecting Britain's capital with the north. But that came just a week after initial profits warning, raising concerns about how the UK government awards contracts.>> I mean, there's a sort of separate line of complaint, which is that Britain outsources an awful lot of its public services to private companies.
It's the second largest outsourcing market in the world after the United States. And labor and the unions say that certain services, such as running of hospitals, are just not suited to being run by private companies. There's too much risk if any of those private companies go bust. So I think we may see an increase focus on that.
>> No bailout is on the table, but the taxpayers' purse is still set to be raided. The British government will have to maintain the public services run by Carillion.