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>> Thousands of small contractors are counting the cost of the collapse of construction giant, Carillion. The 200 year old British company is now in liquidation, with at least 1.6 billion pounds of debt. Carillion used an extensive network of small firms who now face uncertainty on whether they will be paid.
It's believed to owe an estimated 1.2 billion pounds in unpaid bills to subcontractors. Flora-tec, a corporate horticulture company, says it's owed more than 800,000 pounds, and it has already been forced to layoff workers.>> But it's highly unlikely that we will be able to survive this. And I think the government needs to be called to account for that.
>> Reuters, Cait Holton says, Carillion's rapid demise is having a ripple effect.>> The five big banks in the UK are taking a big hit on this already. That's Santander, Barcalays, HSBC, Lloyds and RBS. They were lenders to Carillion and it's unclear what they will get from this so their an obvious hit, we also think that there's concern.
Taking small and medium size suppliers who supplied Carillion and there'll be worries that they're not going to get paid.>> The collapse is causing headaches for Theresa May's government who had employed Carillion to work on 450 projects. Facing questions about why it awarded the company 1.3 billion pounds of state contracts after it fell into financial difficulty last July.
It's priority now is to make sure public services aren't disrupted, but for others the concerns are more immediate as small business struggle to cover their costs. Big players like Carillion have won the vast majority of Britain's outsourcing contracts. It's now raised doubts about the concentration of public contracts in a the hands of a small number of large businesses.
And left the fragility of the subcontracting industry fully exposed.