Carillion sees rising public sector demand
Support services and construction firm Carillion said major public sector customers in areas like defence and health had not been put off outsourcing workers by the G4S Olympic security debacle, which sparked criticism by politicians.
The growing trend of private firms running budget-squeezed public services was thrown into the spotlight in July when the world’s biggest security firm, G4S, failed to deliver a promised 10,400 venue guards for the London Games.
Some politicians have questioned which services private firms should be allowed to run while analysts have said the bad sentiment could slow the flow of prospective government work.
Carillion, which maintains some UK railways, roads and military bases and has a strong construction presence in
Canada and the Middle East, today pointed to a large number of public sector opportunities underpinning £35.6bn worth of potential work as evidence of demand.
“The political sentiment towards outsourcing might be a little strained at the moment,” Carillion chief executive Richard Howson said.
“But within local authorities and our public sector customers, the Ministry of Defence, Department of Health, there is strong support for the advantages that private sector companies can bring to public sector services.”