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Internet of things australia for money write for me bsn nursing capstone project examples movie review memorial day pictures there's widespread surprise but during the autumn when Karelian was hemorrhaging cash that your department awarded a very big hs2 contract to a consortium that included I think the important thing about the edge is to work firstly there is no direct contract with Karelian itself Karelian was part of a consortium that won a major contract the terms of that contract required the other partners to take over the work if one of them Falls to one side which is what's happened that work is continuing there will be no financial impact there will be no timetable impact and in terms of the staff working on the project they will carry on working on the project we're even sorting out that the apprenticeships being done by the Karelian young people are migrating to one of the other firms in the consortium you are a hundred percent confident that the demise of Karelian will have absolutely no impact on the ability of that consortium to deliver what they promised the hs2 team is absolutely clear their contract is with a consortium of companies not with Karelian itself that the other companies are contracted to take over responsibilities of that work that's already happening the staff are migrating over the apprentices are migrating over we've made sure that happens the hs2 project either in time terms or in financial terms will not be affected at all by what is a tragic collapse of Karelian but there are inevitably risks to a consortium when one of its leading members go bust why didn't the government know how serious the problem was for Karelian I mean let's be absolutely clear Bloomberg Reuters in November were very loudly saying banks were already writing off loans to this company why didn't the Gumba know well I mean it's been clear for some time the Caribbeans had issues but many construction firms have had issues over the years hs2 did not have a contract on this project with a single company contracts with consortium it does so on the basis that the whole consortium venture is responsible for delivering the project from our point of view the judgment has to be is the contract intact all the work be done it's not for government and it's not great just to to exclude firms possibly pushing them under because of the impact on their business I could be illegal to do so because there's no legal reason to exclude them what we just have to do is make sure that the contracts deliverable there's no financial cost that we make sure the staff are covered and in all cases the right to diligence was done there will be no impact of this tragic loss of Karelian on the HS 2 project sorry to disagree with you but lawyers tell me there's a totally legal basis for the government to exclude as a bitter a business that is in trouble there's no legal basis for excluding a consortium made up of companies that have done nothing wrong and continuing to deliver in the quarter this was in dire straits one of the companies had issued a Prophet's warning no between three profits warnings and it was hemorrhaging cash and its banks knew that they and the city were told that it was hammering no time talking about they just to contract was last summer it was just awful literally days off so the profit warning was issued by Karelian there was no direct contract there is no direct contract with Karelian it's within a consortium of businesses who are jointly and severally liable for delivering the work and that works carry unless we sit here today that work is carrying on network rail of course did award substantial contracts to Karelian at a time when as I say the banks themselves knew they weren't going to be repaid well Karelian are an integral part or were an integral part of the work that Network Rail does this is of course not something ministers have any involvement in Network Rail does the contracting entirely out with the involvement of government you are the possible department we are and Network Rail have been very quick to make sure that the projects affected will continue they are making sure working to make sure that staff carry on on the same projects they're working to make sure we'll be absolutely clear that subcontractors will be able to carry on and will be certain to be paid there will be a few issues around the transition but Network Rail has been preparing for this possibility is in good shape and I'm confident we'll continue to deliver going well you have you had robust conversations with Network Rail about how they made the mistake in awarding these contracts to Karelian well I've talked to Noah Grail about this and I'm confident they have got good arrangements in place to keep projects going projects that are substantially completed these are projects that in many cases are very nearly completed Karelian have been doing extensive work across the whole rail network for years never Grell are in the process of migrating network to other suppliers and some of it in-house I'm confident that they're doing that well and the important thing is they're working to make sure that staff are certain going forth that they will be paid and subcontractors are certain going forward that they will be paid on the wider issue for government are you concerned that frankly officials and ministers were simply not kept in the picture about how bad it was at Karelian well I think some of the stuff is coming out now about Karelian is is very concerning but we have been monitoring the situation for months and that is why when the contract you well when we awarded the contract when hs2 awarded the contract last summer a lot of work was done to make sure that if Karelian ran into problems then the contract was covered and that's what's happened over the years there in many UK construction firms that had ups and downs and issue profit warnings and they've come through those and continued to deliver excellent work what we have to make sure is that we look after the interests of the taxpayer we look after the interests of those projects we make sure the projects continue and we work to hope that British businesses that run in difficult times pull through and recover and carry on doing good work but in a statement that was given to the court on Monday when it went into liquidation the company finally disclosed that its debts had ballooned to 3 billion he had less than 30 million quid in available cash and its net value means anybody's guess but it looks to be quite close to nil why wasn't the government aware that such an important supplier was going down the swanee spectacularly well there are clearly issues and that's why Greg Clark has said that he is ordering investigations into what's happened that his run proper there are some governance investigations that need to happen within the transport arena though with hs2 there was no direct contract with Karelian itself there was a contract with the consortium that will do the work going forward within the railways and indeed within highways England work is already taking place to migrate to other suppliers to make sure that there is no hiatus and the work being done I'm very confident there is a smooth transition people do not need to be worried that investment projects going forward again to be derailed by what happens finally businesses connected to Karelian are facing significant losses thousands of workers are fearful about whether they're going to be paid whether they're going to keep their jobs should that be prosecutions of that of those responsible well it's quite clear that if the investigations go forward if people have behaved outside the law of course there should be prosecutions my message though to those who have been working for Karelian on the highways England projects is that the money will be there to pay you the subcontractors staff will be paid going forward on those projects it's important that they carry on working on those projects on the sites around the country Network Rail is working to make sure that staff will be paid going forward and that suppliers will be able to be confident they can carry on working on those projects and being paid so a lot of works taking place in all the different parts of the transport system affected by this to make sure the financial impact on the operational impact is as little as possible and finally you're absolutely clear that there are no lessons for the Department for Transport from any of those well I think the lesson that we have to make sure and I think they just who did it well this time they contract their consortium they contract a consortium that was equally responsible for delivering the contract that consortium is now taking over the rest of the work that could look Karelian path of work even for the point of taking on the apprentices the Karelian had on their books before we need to make sure after this that we absolutely have a contracting process going forward that ensures that we are covered if something goes wrong we can never as government guarantee that every business will always do well all of the time what we can do is make sure that we do everything we can to cover the taxpayer to cover people working on the projects that's what we've done this time and we'll learn lessons this time to see what more we can do if God forbid they should happen in future are you still confident that private businesses like Karelian are appropriate to be providing vital public infrastructure and vital public services I'm very clear I don't think government should suddenly start to create a giant construction firm of its own and to build its own mega projects I mean nobody does that anywhere in the world there will undoubtedly be questions asked across other parts of government where services are being delivered on a day-by-day basis but but without the private sector we would lose a flow of investment into our infrastructure into the services we provide just on our railways it is the private sector that is buying hundreds and hundreds and thousands of new trains all around the network that would disappear if there were no private companies involved so the idea that somehow government can take over and build all these projects and spend all the money and do everything it needs to be done I think it's a nonsense and your colleagues shared with you their concerns about other providers of services Cabinet Office monitoring in to serve for example I'm not aware within the transport area today of any other firm that is doing work of the kind Karelian was doing about which there are question marks it's actually state very good to see you you're welcome you capstone mining board of directors for money New York Theological Seminary.