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168-638: Carillion plc was a British multinational construction and facilities management services company headquartered in Wolverhampton in the United Kingdom, prior to its liquidation in January 2018. Carillion was created in July 1999, following a demerger from Tarmac . It grew through a series of acquisitions to become the second largest construction company in the United Kingdom, was listed on

336-537: A "a small number of redundancies" in its construction and projects team as a result of Carillion's collapse. The impacts of Carillion's collapse extended over a year: in January 2019, construction equipment hirer Hawk Plant went into administration after losing around £800,000 from the collapse of Carillion and a problem contract in Sierra Leone; also in January 2019, piling contractor Van Elle reported pretax profits down 54% to £2.4M as turnover fell 18% to £42.9M in

504-604: A 'smokescreen' for its own poor payment record. Four companies in Lagan Construction Group went into administration owing £21M in early March 2018 partly as a result of Carillion's insolvency; tightened credit terms and requests for upfront payments had affected cashflow. Similarly, 55-strong Chippenham-based flooring contractor Polydeck blamed Carillion "tailwinds" after it went into administration on 25 May 2018. Cheshire-based civil engineering contractor D G Cummins lost £1.8M owed by Carillion for work undertaken on

672-801: A 60% stake in Rokstad Power Corporation, a Canadian transmission and distribution business, for £33M. Carillion acquired 100% of the Outland Group, a specialist supplier of camps and catering at remote locations in Canada, in May 2015 and a majority stake in Ask Real Estate, a Manchester -based developer, in January 2016. In 2009, Carillion was revealed as a subscriber to an illegal construction industry blacklisting body, The Consulting Association (TCA), though its inclusion on

840-783: A Carillion subcontract at the Midland Metropolitan University Hospital . On 29 January 2018, CCP, a Slough -based dry lining contractor with a 350-strong site-based labour force, called in liquidators due to debts owed by Carillion. Already financially troubled ground engineering business Aspin Group Holdings went into administration in February 2018 as part of pre-pack deal after the group and its subsidiaries were owed around £800,000 by Carillion (bought by private equity firm Sandton Capital Partners, Aspin subsequently went into administration, with

1008-490: A UK domestic train service was the Hull Trains 07.30 King's Cross to Hull , which covered the 125.4 km (77.9 miles) from Stevenage to Grantham in 42   minutes at an average speed of 179.1 km/h (111.3 mph). This was operated by a Class 180 diesel unit running "under the wires" at the time, and is now operated by Class 802 Paragon bi-mode units, operating on electric power on this section. This

1176-766: A basis in a national ethos , being ultimate without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards . In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefits capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation . Raymond Vernon presents

1344-508: A corporation invests in a country in which it is not domiciled, it is called foreign direct investment (FDI). Countries may place restrictions on direct investment; for example, China has historically required partnerships with local firms or special approval for certain types of investments by foreigners, although some of these restrictions were eased in 2019. Similarly, the United States Committee on Foreign Investment in

1512-412: A fifth on the same period in 2017, with small to medium-sized companies and specialist subcontractors particularly hard hit, having to write off virtually everything owed to them by Carillion. Total construction insolvencies in 2018 were up 13% to 2,954 companies, according to law firm Nockolds, who said fallout from Carillion's collapse had contributed to a spike in businesses folding. Law firm RPC made

1680-429: A free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to

1848-814: A legal ruling that the group's collapse did not warrant "special circumstances" protection. In January 2019, Unite reported that worker redundancy payment negotiations had been made "unduly complicated" because of Carillion's complex corporate structure, and said the total amount of redundancy pay awarded to ex-Carillion workers was expected to rise to £65M. A week after the liquidation, PwC agreed with Network Rail that Carillion Construction employees to its projects would have their wages guaranteed through to at least mid April 2018, while Carillion suppliers on Network Rail projects would also be paid. 150 Carillion workers employed on smart motorway joint ventures with Kier were set to become Kier employees; 51 Carillion employees working on seven HS2 civil engineering packages awarded to

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2016-613: A locally managed liquidation. By the end of 2018, 91 Carillion companies had been liquidated. In April 2018, the Official Receiver estimated the total liabilities of the then 27 liquidated UK companies at £6.9 billion, a figure over three times higher than given in the Group's accounts at the end of 2016. On 6 August 2018, the Insolvency Service announced the end of the trading phase of the liquidation, described by

2184-493: A merger with rival Balfour Beatty . Three offers were made; the last bid, which valued Balfour Beatty at £2.1 billion, was unanimously rejected by the Balfour Beatty board on 19 August 2014. Balfour refused to allow an extension of time for negotiations that could have prompted a fourth bid. Carillion announced later that day that it would no longer pursue a merger with its rival. In December 2014, Carillion acquired

2352-490: A million troops to help, and by February 1991, Iraqi forces were expelled from Kuwait. Due to the oil boycott from Kuwait and Iran, oil prices rose and quickly recovered. Saudi Arabia once again led OPEC, and thanks to assistance in defending Kuwait, new relations emerged between the USA and OPEC. Operation "Desert Storm" brought mutual dependence among the main oil producers. OPEC continued to influence global oil prices but recognized

2520-506: A new CEO led to the appointment of Andrew Davies , CEO of Wates – announced on 27 October 2017 – with Davies set to join the firm in April 2018). As a result, the contractor was demoted from the FTSE 250 Index , and five directors (including Howson and finance director Zafar Khan ) left the company as it tried to refinance. On 27 September 2017, a Middle Eastern firm was said to be considering

2688-659: A new high-speed railway in the UK. This study began on the assumption the route would be a new purpose-built high-speed line connected to High-Speed 1 to the Channel tunnel and from London to the West Midlands , via Heathrow Airport , relieving traffic on the West Coast Main Line (WCML). Conventional high-speed rail technology would be used as opposed to Maglev . The rolling stock would be capable of travelling on

2856-665: A number of heritage (mainly steam) standard and narrow gauge railways, and a few industrial railways and tramways. Some lines which appear to be heritage operations sometimes claim to be part of the public transport network; the Romney, Hythe and Dymchurch Railway in Kent regularly transports schoolchildren. Most major cities have some form of commuter rail network . These include Belfast , Birmingham, Bristol, Cardiff , Edinburgh, Exeter , Glasgow , Leeds , Liverpool, London and Manchester . There are four main goods operating companies in

3024-685: A number of other joint railways such as the Midland and Great Northern Joint Railway and the Cheshire Lines Committee as well as special joint railways such as the Forth Bridge Railway, Ryde Pier Railway and at one time the East London Railway ). The "Big Four" were joint-stock public companies and they continued to run the railway system until 31 December 1947. The growth in road transport during

3192-650: A possible break-up of the Big Four accounting firms . A separate report by the Public Administration and Constitutional Affairs Select Committee , in July 2018, blamed the UK government for outsourcing contracts based on lowest price, saying its use of contractors such as Carillion had caused public services to deteriorate. Carillion was created in July 1999, following a demerger from Tarmac , which had been founded in 1903. Tarmac focused on its core heavy building materials business, while Carillion included

3360-422: A record 22.7 billion net tonne kilometres (14 billion net ton miles) of freight movement were recorded in 2013–4, against 16.6 billion (10.1 billion) in 1986–7, an increase of 38%. Coal made up 36% of the total net tonne kilometre , though its share was declining. Rail freight had increased its market share since privatisation (by net tonne kilometres) from 7.4% in 1998 to 11.1% in 2013. Growth

3528-467: A rescue deal agreed, with a potential administration process set to start on 15 January 2018. The Financial Times later reported Carillion had just £29M in cash when it collapsed, and would have run out of cash by 18 January 2018. Consultants PricewaterhouseCoopers (PwC) and EY had both rejected roles as administrators amid concerns they would not be paid. On 15 January 2018, the BBC reported Carillion

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3696-437: A six-month delay following Carillion's collapse, in July 2018, with Tolent as the main contractor. Tameside Council 's 'Vision Tameside' project east of Manchester was taken over by Robertson Construction, but rising costs for this and other former Carillion projects meant 18 major investment projects were put on hold, while the council faced rising fees imposed by PwC. Tameside also faced a £5M bill to repair problems arising from

3864-401: A takeover bid. Two days later, it was revealed that Carillion's losses for the six months ended 30 June 2017 totalled £1.15 billion, following a further write down of £200M relating to its support services division. In September 2017 Keith Cochrane told investors that the business had accepted too many projects which turned out unprofitable and for which the amount paid was insufficient for

4032-400: A training contract with a government department or agency. In June 2018, 776 out of 1148 had been re-employed or moved into full-time education, 225 were seeking future work and 147 had become disengaged. Construction apprentices made up 341 of the 356 people made redundant in the week reported on 30 July; Unite said these redundancies reduced UK construction apprenticeship numbers by 1.6%, while

4200-484: A £2.7M school refurbishment project carried out by Carillion before it collapsed. Multinational corporation Most of the current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were

4368-795: Is 70. The UK has the 17th largest railway network in the world ; despite many lines having closed in the 20th century, due to the Beeching cuts , it remains one of the densest networks. It is one of the busiest railways in Europe , with 20% more train services than France , 60% more than Italy , and more than Spain , Switzerland , the Netherlands , Portugal and Norway combined, as well as representing more than 20% of all passenger journeys in Europe. The rail industry employs 115,000 people and supports another 250,000 through its supply chain. After

4536-452: Is a large programme of upgrades to the network, including Thameslink , Crossrail , electrification of lines , in-cab signalling , new inter-city trains and new high-speed lines . According to historians David Brandon and Alan Brooke, the railways brought into being our modern world: The railways started with the local isolated wooden wagonways in 1560s using horses. These wagonways then spread, particularly in mining areas. The system

4704-429: Is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years. [...] In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision. We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain

4872-695: Is according to the Office of Rail and Road and includes open access operators such as Grand Central and Hull Trains . There are 2,579 passenger railway stations on the Network Rail network. This does not include the London Underground , nor other systems which are not part of the national network, such as heritage railways. Most date from the Victorian era and a number are in or on the edge of town and city centres. Major stations lie for

5040-410: Is often handled through international arbitration . The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in

5208-727: Is partly attributed to a shift away from private motoring due to growing road congestion and increasing petrol prices, but also to the overall increase in travel due to affluence. Passenger journeys in Britain grew by 88% over the period 1997–98 to 2014 as compared to 62% in Germany, 41% in France and 16% in Spain. The United Kingdom is a member of the International Union of Railways (UIC). The UIC country code for United Kingdom

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5376-865: Is usually a large corporation incorporated in one country that produces or sells goods or services in various countries. Two common characteristics shared by MNCs are their large size and centrally controlled worldwide activities. MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial experience globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries and gain access to special R&D capabilities residing in advanced foreign countries. The problem of moral and legal constraints upon

5544-523: The Investors Chronicle commented that its financial problems were not a secret and had been known for at least two years, with little working capital, shrinking amounts due to customers, and rising monies withheld by clients. On 24 October 2017, it was reported that Carillion was preparing to sell its healthcare facilities management business to Serco (the deal included 15 contracts, with annual revenues of approximately £90M for which Serco

5712-980: The British East India Company founded in 1600 and the Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over

5880-585: The Building Engineering Services Association and the Electrical Contractors' Association found that 80 of them were collectively owed £30 million by Carillion, an average exposure of £375,000. Average debts owed to micro businesses (fewer than 10 employees) were £98,000; medium-sized businesses (50 to 249 employees) were owed on average £236,000, with the most exposed firm owed almost £1.4M. Only £31M of

6048-657: The Class 252 , reached a world speed record for diesel trains of 143.2 mph, while the main fleet entered service limited to a service speed of 125 mph, and were introduced progressively on main lines across the country, with a rebranding of their services as the InterCity 125 . With electrification of the East Coast Main Line , high-speed rail in Great Britain was augmented with the introduction of

6216-579: The Class 91 , intended for passenger service at up to 140 mph (225 km/h), and thus branded as the InterCity 225 . The Class 91 units were designed for a maximum service speed of 140 mph, and running at this speed was trialled with a 'flashing green' signal aspect under the British signalling system . The trains were eventually limited to the same speed as the HST, to 125 mph, with higher speeds deemed to require cab signalling , which as of 2010

6384-614: The Department for Transport (DfT), with the exception of Merseyrail , where the franchise is awarded by the Merseyside Passenger Transport Executive . In Scotland, contracts for ScotRail , is awarded by Transport Scotland , and in Wales , contracts for Transport for Wales Rail , is awarded by Transport for Wales , although the latter is currently publicly owned with no plans for franchising in

6552-409: The Department for Transport 's Transport Ten Year Plan called for an 80% increase in rail freight. Statistics on freight are specified in terms of the weight of freight lifted, and the net tonne kilometre , being freight weight multiplied by distance carried. 116.6 million tonnes of freight was lifted in the 2013–4 period, against 138 million tonnes in 1986–7, a decrease of 16%. However,

6720-485: The Department for Transport . Transport for Wales Rail is owned by Transport for Wales , a Welsh Government owned company, with no current plans to re-privatise the latter. On 1 April 2022, ScotRail was put under public ownership by the Scottish Government , under Transport Scotland as ScotRail operating on the same day. The COVID-19 pandemic caused a huge fall in the number of passengers using

6888-768: The Hatfield crash in October 2000. However, in June 2015 the PPM stood at 91.2% after a period of steady increases in the annual moving average since 2003 until around 2012 when the improvements levelled off. Train fares cost 2.7% more than under British Rail in real terms on average. For some years, Britain has been said to have the highest rail fares in Europe, with peak-time and season tickets considerably higher than other countries, partly because rail subsidies in Europe are higher. However, passengers are also able to obtain some of

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7056-589: The London Stock Exchange , and in 2016 had some 43,000 employees (18,257 of them in the United Kingdom). Concerns about Carillion's debt situation were raised in 2015, and after the company experienced financial difficulties in 2017, it went into compulsory liquidation on 15 January 2018, the most drastic procedure in UK insolvency law , with liabilities of almost £7 billion. In the United Kingdom,

7224-450: The M6 motorway widening contract junctions 16–19, and, facing a £600,000 tax demand, had to file a notice of intent to enter administration, endangering 50 jobs. In October 2018, a report from accountant Moore Stephens said Carillion's liquidation had triggered a 20% spike in the number of UK building firms becoming insolvent: 780 companies fell into insolvency in the first quarter of 2018, up

7392-644: The Midland Metropolitan University Hospital (where 70 Carillion staff lost their jobs) in Birmingham, with the project 18 months late and likely to cost an additional £125M. However, in June 2018, banks financing the project withdrew their support, and HM Treasury cancelled the PFI contract for construction of the hospital, leaving the NHS Trust to search for new investment and pushing the completion date back to at least 2022. Market testing with contractors showed there

7560-664: The National Audit Office , £2.6bn in pension liabilities have to be covered by the Pension Protection Fund . Carillion operated 13 UK defined benefit pension schemes with 27,000 members. Following the liquidation, 12 of these schemes entered a Pension Protection Fund assessment period. In January 2018, the contracts previously awarded to Carillion for smart motorway projects were taken on by Kier Group. Rival contractors looked to take over Carillion's two major hospital PFI projects. Skanska targeted

7728-649: The Specialist Engineering Contractors Group said Carillion's failure "could lead to many smaller firms going under". Up to 30,000 small businesses were reportedly owed money by Carillion, who used 'delay tactics' and withheld payments to suppliers, sometimes for up to 120 days. Within 24 hours, equipment hire firm Speedy Hire and piling contractor Van Elle were reporting potential losses of £2M and £1.6M respectively; Van Elle also reported uncertainty relating to £2.5M worth of future work for Network Rail. A survey of 133 companies by

7896-628: The Tyne and Wear Metro centred on Newcastle upon Tyne . Light rail systems in the form of trams are in Birmingham , Croydon , Manchester , Nottingham , Sheffield and Edinburgh . These systems use a combination of street running tramways and, where available, reserved right of way or former conventional rail lines in some suburbs. Blackpool has the one remaining traditional tram system. Monorails, heritage tramways, miniature railways and funiculars also exist in several places. In addition, there are

8064-849: The facilities management services sector. In September 2001, Carillion acquired the 51% of GT Rail Maintenance it did not already own, thereby creating Carillion Rail. Carillion Rail carried out track renewals on the rail network , and contract work for Network Rail . In August 2002, Carillion bought Citex Management Services for £11.5M and, in March 2005, it acquired Planned Maintenance Group for circa £40M. After that, Carillion went on to acquire two more United Kingdom support services firms: Mowlem , for circa £350M in February 2006, and Alfred McAlpine , for £572M in February 2008. Then, in October 2008, Carillion bought Vanbots Construction in Canada for £14.3M. Carillion bought Eaga , an energy efficiency business, for £306M in April 2011. However, by December 2011

8232-421: The 1920s and 1930s greatly reduced revenue for the rail companies. Rail companies accused the government of favouring road haulage through the subsidised construction of roads. The railways entered a slow decline owing to a lack of investment and changes in transport policy and lifestyles. During World War II , the companies' managements joined, effectively forming one company. A maintenance backlog developed during

8400-670: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for

8568-1002: The 2010s, many upgrades have been under way, such as Thameslink , Crossrail , the Northern Hub and electrification of the Great Western Main Line . Electrification plans for the Midland Main Line and the Transpennine line between Manchester and Leeds have been scaled back. Construction of High Speed 2 is underway, with a projected completion date of 2026 for Phase 1 (London to Birmingham) and 2033 for Phase 2. A poll of 1,500 adults in Britain in June 2018 showed that 64% support renationalising Britain's railways. Currently, six franchises are under public ownership, and thus effectively nationalised. Four, LNER , Northern Trains , Southeastern and TransPennine Express , are operators of last resort owned by

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8736-589: The BBC, this represents the largest shake-up in the UK's railways since privatisation. On 18 November 2021, the government announced the biggest ever public investment in Britain's rail network costing £96 billion and promising quicker and more frequent rail connections in the North and Midlands: the Integrated Rail Plan includes substantially improved connections north–south as well as east–west and includes three new high speed lines. In July 2024,

8904-474: The British network the fifth most used in the world (Great Britain ranks 23rd in world population). Unlike a number of other countries, rail travel in the United Kingdom has enjoyed a renaissance in recent years, with passenger numbers approaching their highest ever level (see usage figures below). This has coincided with the privatisation of British Rail , but the cause of this increase is unclear . The growth

9072-802: The CEK joint venture were offered the opportunity to join Kier/ Eiffage . Nationwide Building Society took on around 250 former Carillion employees engaged in facilities management work at its offices and branches. Around 1,000 Carillion staff engaged on prison facilities management work for the Ministry of Justice were transferred to a new government-owned company, 22 workers from Carillion's power network business joined J Murphy & Sons , around 60 staff at Carillion's Newcastle-based legal services arm joined Clifford Chance , and 700 employees engaged on Network Rail projects transferred to Amey Rail; Amey paid

9240-551: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

9408-431: The International Energy Agency (IEA), enabling states to coordinate policy, gather data, and monitor global oil reserves. In the 1970s, OPEC gradually nationalized the Seven Sisters. The Kingdom of Saudi Arabia, as the only largest world oil producer, could leverage this. However, Saudi Arabia opted for the correct approach and maintained consistent oil prices throughout the 1970s. In 1979, the "second oil shock" came from

9576-414: The Milburngate development in Durham . In a further profit warning, on 17 November 2017, Carillion said it would breach banking covenants the following month, with full year debts set to reach up to £925M. A recapitalisation plan was to be implemented in early 2018. The company's share price fell over 50% in early trading to just 18p – valuing the business at £73M. Unite the Union sought urgent talks with

9744-416: The NHS Trust revealed that the cost of rectifying serious faults, including replacing non-compliant cladding installed by Carillion, was holding up plans to restart and finish the £350M project; with the project further delayed, the Trust was considering invoking a break clause to terminate the PFI contract. On 24 September 2018, it was reported that the government would step in to terminate the PFI deal, taking

9912-451: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

10080-434: The OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example: Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963,

10248-423: The Official Receiver announced an initial 377 redundancies; a further 994 redundancies were announced during February, 337 in March, 554 in April, 75 in May, 43 in June, 399 in July, and 9 in August, bringing the redundancy total by this date to 2,787 – 15% of the pre-liquidation workforce. In parallel, 13,945 jobs had been safeguarded through transfers (76% of the pre-liquidation workforce), while 1,274 employees left

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10416-424: The Official Receiver as "the largest ever trading liquidation in the UK". Work on finalising Carillion's trading accounts and payments to suppliers, and investigations into the cause of the company's failure, including the conduct of its directors, continued. In December 2018, it was reported that former Carillion directors Philip Green and Richard Howson had been interviewed by the Insolvency Service. In November 2019,

10584-495: The Official Receiver established a specialist team and said former staff should receive the necessary information within seven days of being made redundant or transferring to a new employer. In July 2018, Unite launched legal action on behalf of 27 members made redundant at GCHQ in Cheltenham claiming proper consultation had not taken place; in July 2021, on behalf of 263 members seeking compensation over Carillion's failure to inform and consult them on redundancy terms, Unite secured

10752-409: The Official Receiver £2.1M for Carillion's rail contracts. French engineering group Egis took on Carillion's M40 upkeep motorway contract, safeguarding the jobs of around 95 Carillion workers. Carillion Welding was acquired by Rail Safety Solutions Ltd, saving 63 jobs. However, the transfer of some overseas-born staff to new employers was hampered by strict application of immigration rules that required

10920-404: The Third World colonies. That changed dramatically after 1945 as investors turned to industrialized countries and invested in manufacturing (especially high-tech electronics, chemicals, drugs, and vehicles) as well as trade. Sweden's leading manufacturing concern was SKF , a leading maker of bearings for machinery. In order to expand its international business, it decided in 1966 it needed to use

11088-636: The U.S. applies its corporate taxation "extraterritorially", which has motivated tax inversions to change the home state. By 2019, most OECD nations, with the notable exception of the U.S., had moved to territorial tax in which only revenue inside the border was taxed; however, these nations typically scrutinize foreign income with controlled foreign corporation (CFC) rules to avoid base erosion and profit shifting . In practice, even under an extraterritorial system, taxes may be deferred until remittance, with possible repatriation tax holidays , and subject to foreign tax credits . Countries generally cannot tax

11256-428: The UK Government had significantly reduced the feed-in tariffs for green energy and Carillion had to rationalise the business. In December 2012, it acquired a 49% interest in The Bouchier Group, a company providing services in the Athabasca oil sands area, for £24m. Then, in October 2013, the company bought the facilities management business of John Laing . In August 2014, the company spent several weeks attempting

11424-401: The UK Government permanently got rid of the rail franchising system. On 20 May 2021, the Government announced a white paper that would transform the operation of the railways. The rail network will be partly renationalised, with infrastructure and operations brought together under the state-owned public body Great British Railways . Operations will be managed on a concessions model. According to

11592-401: The UK, the largest of which is DB Cargo UK (formerly DB Schenker, formerly English Welsh & Scottish (EWS)). There are also several smaller independent operators including Mendip Rail . Types of freight carried include intermodal – in essence containerised freight – and coal, metals, oil, and construction materials. The Beeching Cuts, in contrast to passenger services, greatly modernised

11760-450: The United States sanctions against Iran ; European companies faced with the possibility of losing access to the U.S. market by trading with Iran. International investment agreements also facilitate direct investment between two countries, such as the North American Free Trade Agreement and most favored nation status. Raymond Vernon reported in 1977 that of the largest multinationals focused on manufacturing, 250 were headquartered in

11928-506: The United States scrutinizes foreign investments. In addition, corporations may be prohibited from various business transactions by international sanctions or domestic laws. For example, Chinese domestic corporations or citizens have limitations on their ability to make foreign investments outside China, in part to reduce capital outflow . Countries can impose extraterritorial sanctions on foreign corporations even for doing business with other foreign corporations, which occurred in 2019 with

12096-677: The United States as the largest consumer and guarantor of the existing oil security order. Since the Iraq War, OPEC has had only a minor influence on oil prices, but it has expanded to 11 members, accounting for about 40 percent of total global oil production, although this is a decline from nearly 50 percent in 1974. Oil has practically become a common commodity, leading to much more volatile prices. Most OPEC members are wealthy, and most remain dependent on oil revenues, which has serious consequences, such as when OPEC members were pressured by

12264-461: The United States from 2010. The USA became the leading oil producer, creating tension with OPEC. In 2014, Saudi Arabia increased production to push new American producers out of the market, leading to lower prices. OPEC then reduced production in 2016 to raise prices, further worsening relations with the United States. By 2012, only 7% of the world's known oil reserves were in countries that allowed private international companies free rein; 65% were in

12432-523: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that

12600-711: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in

12768-507: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of

12936-608: The average Advance ticket in 1995 cost £9.14 (in 2014 prices) compared to £5.17 in 2014. Rail subsidies have increased from £3.4bn in 1992–93 to £4.5bn in 2015–16 (in current prices), although subsidy per journey has fallen from £4.57 per journey to £2.61 per journey. However, this masks great regional variation, as in 2014–15 funding varied from "£1.41 per passenger journey in England to £6.51 per journey in Scotland and £8.34 per journey in Wales." The public image of rail travel

13104-620: The average age to around 15 years by March 2021. Although passengers rarely have cause to refer to either document, all travel is subject to the National Rail Conditions of Travel and all tickets are valid subject to the rules set out in a number of so-called technical manuals , which are centrally produced for the network. Below are the estimated total number of journeys using heavy rail transport in Britain for each financial year. (This table does not include Eurostar, Underground or light rail services) The following table

13272-415: The badly built Liverpool project, and blamed Carillion for pricing the jobs too low to meet specifications. The two projects were expected to cost more than 40% more than their original budgets, and to be completed between three and five years late. However, due to effective risk transfer to the contractor, the total cost to the taxpayer would be very similar to the original plan. A follow-up investigation into

13440-469: The behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that has emerged during the late twentieth century. Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week ,

13608-462: The business through finding new work, retirement or for other reasons; a year after the liquidation, the total number of redundancies was reported as 3,038. Around £50M in redundancy payments had been paid up to September 2018, with the final bill likely to reach £65M. After staff made redundant claimed PwC did not provide information necessary for them to claim redundancy pay and statutory notice pay, causing financial hardship and threatening mortgages,

13776-695: The case of the InterCity West Coast and InterCity East Coast franchises, applicants submit bids to return the most money to the government from operating the service. This has led to franchisees collapsing when passenger growth targets are not met as promised payments to the government cannot be paid and the franchise is exited early. In 2023, Network Rail held over £59.1   billion in debt, and £1.176   billion interest payments. Many of these debts were incurred by Railtrack and transferred to Network Rail when it collapsed. British Rail operations were privatised during 1994–1997. Ownership of

13944-480: The cheapest fares in Europe if they book in advance or travel at off-peak times or purchase 'day-return' tickets which cost little more than a single ticket. UK rail operators point out rail fare increases have been at a substantially lower rate than petrol prices for private motoring. The difference in price has also been blamed on the fact Britain has the most restrictive loading gauge (maximum width and height of trains that can fit through tunnels, bridges etc.) in

14112-742: The collapse of the Shah's regime in Iran. Iran became a regional power due to oil money and American weapons. The Shah eventually abdicated and fled the country. This prompted a strike by thousands of Iranian oil workers, significantly reducing oil production in Iran. Saudi Arabia tried to cope with the crisis by increasing production, but oil prices still soared, leading to the "second oil shock." Saudi Arabia significantly reduced oil production, losing most of its revenues. In 1986, Riyadh changed course, and oil production in Saudi Arabia sharply increased, flooding

14280-717: The companies. This occurred in 1960. Prior to the 1973 oil crisis , the Seven Sisters controlled around 85 percent of the world's petroleum reserves . In the 1970s, most countries with large reserves nationalized their reserves that had been owned by major oil companies. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies, such as Saudi Aramco , Gazprom (Russia), China National Petroleum Corporation , National Iranian Oil Company , PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). A unilateral increase in oil prices

14448-477: The company's extended supplier payment terms and its use of ' reverse factoring ', argued Carillion was more leveraged than it reported, and predicted a "profit shortfall" was likely. By October 2015, Carillion had become hedge funds ' most popular share to ' sell short ' as analysts questioned the lack of growth and rising debt. From having less than 5% of its shares shorted at the beginning of 2015, over 20% of Carillion shares were on loan to hedge funds by June 2016;

14616-451: The company's road maintenance and facilities management contracts. Canadian FM firm BGIS, a subsidiary of Brookfield, negotiated to take on 2,500 workers engaged on UK hospital, education, justice, transport and emergency services contracts, but the negotiations failed on 8 March 2018. Out of nearly 1200 apprentices affected by Carillion's liquidation, around a third – 419 – were still without work in early April 2018; only two had been offered

14784-524: The company's share price fell 19% over the same period. On 10 July 2017, a Carillion trading update highlighted a £845M impairment charge in its construction services division, mainly relating to three loss-making UK PFI projects and costs arising from Middle East projects. Chief executive Richard Howson (appointed CEO in December 2011) stepped down but was retained as operations director, with Keith Cochrane temporarily becoming CEO (Carillion's search for

14952-498: The company, concerned about the future of around 1,000 Carillion workers plus others employed by subcontractors and agencies. Major shareholder Kiltearn Partners halved its shareholding incurring a loss of over £40M. On 20 December, Carillion announced it had brought forward the arrival of new CEO Andrew Davies to 22 January 2018. On 3 January 2018, it was reported that the UK Financial Conduct Authority

15120-510: The conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management , and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations, we are some quarter-century into an era of stateless corporations—corporations that meet

15288-711: The conduct of the firm's directors, its auditors ( KPMG ), the Financial Reporting Council and The Pensions Regulator , and about the UK Government's relationships with major suppliers working on private finance initiative (PFI) schemes and other privatised outsourcing of public services (in October 2018, the UK Government said no new PFI projects would be started). It also prompted legislation proposals to reform industry payment systems, consultations on new government procurement processes to promote good payment practices, and proposed FRC reforms to

15456-440: The coordination of transport in Great Britain. Rail revenue fell and in 1955 the network again ceased to be profitable. The mid-1950s saw the rapid introduction of diesel and electric rolling stock, but the expected transfer back from road to rail did not occur and losses began to mount. The desire for profitability led to a major reduction in the network during the mid-1960s, with ICI manager Dr. Richard Beeching commissioned by

15624-426: The cost of work done ("we were building a Rolls-Royce but only getting paid to build a Mini "), and its management structure and internal organisation had been over-complex and lacking sufficient regard to contractual risk assessment and overly optimistic assumptions; as a result, the company had "burned through cash" trying to deliver to a high standard without assessing the possible implications. In September 2019,

15792-643: The creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as

15960-850: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Rail transport in Great Britain The railway system in Great Britain is the oldest railway system in the world. The first locomotive-hauled public railway opened in 1825, which was followed by an era of rapid expansion. Most of the track is managed by Network Rail , which in 2017 had a network of 9,824 miles (15,811 km) of standard-gauge lines, of which 3,339 miles (5,374 km) were electrified . In addition, some cities have separate metro, light rail and tram systems, among them

16128-657: The domestic fleet of InterCity 125 and 225 trains on the existing national network was announced. In 2009 it was announced that the preferred rolling stock option for this project was the Hitachi Super Express family of multiple units, and they entered service in 2017 on the Great Western Main Line and in 2019 on the East Coast Main Line. The trains will be capable of a maximum speed of 140 mph with "minor modifications", with

16296-467: The end of September 2003, the first part of High Speed 1 , a high-speed link to the Channel Tunnel and onward to France and Belgium, was completed, significantly adding to the rail infrastructure of the country. The rest of the link, from north Kent to London St Pancras opened in 2007. A major programme of remedial work on the West Coast Main Line started in 1997 and finished in 2008. Since

16464-469: The estimated £1bn-plus owed by Carillion was covered by trade credit insurance. In late March 2018, Bury North MP James Frith hosted a meeting in Parliament attended by suppliers affected by Carillion's collapse; companies highlighted unpaid debts of between £250,000 and £2.7M. In August 2018, building services specialist NG Bailey announced a £2.2M exceptional loss for irrecoverable costs arising from

16632-602: The existing Network Rail infrastructure if required, with the route intersecting with the existing WCML and the East Coast Main Line (ECML). A cancelled second phase of the project was planned to reach further north to Manchester, Sheffield and Leeds, as well as linking into the Midland Main Line . In June 2014, the chancellor of the Exchequer, George Osborne , proposed a high-speed rail link Northern Powerhouse Rail (also known as High Speed 3 or High Speed North) between Liverpool and Newcastle/Sheffield/Hull. The line would use

16800-399: The existing route between Liverpool and Newcastle/Hull and a new route from to Sheffield will follow the same route to Manchester Victoria and then a new line from Victoria to Sheffield, with additional tunnels and other infrastructure. As of August 2023 the following rolling stock on the British network is capable of 125 mph or more: In 2011, the fastest timetabled start-to-stop run by

16968-644: The financial effects of the COVID-19 pandemic . The UK government proposed a new state-owned public body, Great British Railways , which would operate a concession contract system on the network from 2023. As of November 2023 , legislation to establish the new body was said to be "unlikely" within the 2023–2024 parliamentary session. In the 2015–16 operating year, franchised services provided 1,718 million journeys totalling (64.7 billion billion passenger km) of travel, an increase over 1994–5 of 117% in journeys (from 761 million) and just over doubling

17136-481: The firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs . Sanjaya Lall in 1974 proposed a spectrum of scholarly analysis of multinational corporations, from the political right to the left. He put the business school how-to-do-it writers at the extreme right, followed by the liberal laissez-faire economists, and the neoliberals (they remain right of center but do allow for occasional mistakes of

17304-476: The first of a new Class 395 train fleet for use partly on High Speed 1 and parts of the rest of the UK rail network, the first domestic high-speed running over 125 mph (to about 140 mph) began in December 2009, including a special Olympic Javelin shuttle for the 2012 Summer Olympics . These services are operated by the South Eastern franchise . The Intercity Express Programme for replacement of

17472-668: The five geographical Regions were replaced by a Sectored organisation, in which passenger services were organised into InterCity , Network SouthEast and Regional Railways sectors. The Railways Act 1993 divided the railways up, with Railtrack taking ownership of British Rail's property portfolio, tracks, signals, bridges and tunnels, Rolling Stock Operating Companies, and train operating companies. Passenger transport services were bundled together into franchises to facilitate cross-subsidy within franchises, with many regulations on ticket prices and types, regulated fare increases and "Parliamentary service" obligations. Companies submit bids to

17640-490: The former Tarmac Construction contracting business and the Tarmac Professional Services group of businesses. At the time of demerger Sir Neville Simms was appointed executive chairman of the business. Simms stood down from his executive responsibilities in January 2001 but remained non-executive chairman until May 2005 when Philip Rogerson took over the chair. The name 'Carillion', a corruption of

17808-762: The franchising authority - often the Secretary of State for Transport, Passenger Transport Authority, or devolved government - competing for the lowest subsidy requirement and to invest in the railway over the lifespan of the franchise. There is also provision for subsidy between franchises, with profitable franchises demanding payments made to the government to cover a share of the losses from others. Examples of franchises include ScotRail , Great Western , and Southern Trains . Open Access Operators are entirely free to set their own services and fares unaffected by government regulations. Examples of such operators are Lumo and Grand Central , Hull Trains and Heathrow Express . In

17976-452: The goods sector, replacing inefficient wagons with containerised regional hubs. Freight services had been in steady decline since the 1930s, initially because of the reduction in manufacturing and then road haulage's cost advantage in combination with higher wages. Since 1995, however, the amount of freight carried on the railways has increased sharply due to increased reliability and competition, as well as international services. In 2000,

18144-680: The government resisted calls for the nationalisation of the network (first proposed by 19th century Prime Minister William Gladstone as early as the 1830s). Instead, from 1 January 1923, almost all the remaining companies were grouped into the "big four": the Great Western Railway , the London and North Eastern Railway , the London Midland and Scottish Railway and the Southern Railway companies (there were also

18312-496: The government said the CITB had found new paid employment for 777 former Carillion apprentices. On 31 July 2018, The Guardian highlighted the matter: Unite assistant general secretary Gail Cartmail said: "This is an appalling way to treat these apprentices who should have become the backbone of the industry. To dump them and to destroy their training is an act of crass stupidity." In April 2018, Carillion's Wolverhampton headquarters

18480-469: The government under Ernest Marples with reorganising the railways. Many branch lines (and a number of main lines) were closed because they were deemed uneconomic ("the Beeching Axe " of 1963), removing much feeder traffic from main line passenger services. In the second Beeching report of 1965, only the "major trunk routes" were selected for large-scale investment, leading many to speculate the rest of

18648-416: The hands of state-owned companies that operated in one country and sold oil to multinationals such as BP, Shell, ExxonMobil and Chevron. Down through the 1930s, about 80% of the international investments by multinational corporations were concentrated in the primary sector, especially mining (especially oil) and agriculture (rubber, tobacco, sugar, palm oil , coffee, cocoa, and tropical fruits). Most went to

18816-538: The historic London Underground and the Glasgow Subway . There are also many private railways , some of them narrow-gauge , which are primarily short lines for tourists. The main rail network is connected with that of continental Europe by the Channel Tunnel and High Speed 1 , opened in 1994 and 2007 respectively. In 2019, there were 1.738 billion journeys on the National Rail network, making

18984-499: The hospital into full public ownership, meaning a £180M loss for private sector lenders Legal & General and the European Investment Bank . This was confirmed on 26 September 2018, with completion of the hospital in 2020 (later delayed to autumn 2022) likely to cost an additional £120M, due to unforeseen issues left behind by Carillion. On 26 October 2018 Laing O'Rourke was confirmed as the contractor to complete

19152-643: The hospitals projects by the Public Accounts Committee was postponed in May 2020 due to the COVID-19 pandemic in the United Kingdom . The Lincoln eastern bypass project, originally awarded by Lincolnshire County Council to Carillion, was taken over by Galliford Try , adding £24M in costs and delaying the project's completion by six months to May 2020. The redevelopment of the Vaux Breweries site in Sunderland resumed, after

19320-510: The initial period of rapid expansion following the first public railways in the early 19th century, from about 1900 onwards the network suffered from gradual attrition, and more severe rationalisation in the 1950s and 1960s. However, the network has again been growing since the 1980s. The UK was ranked eighth among national European rail systems in the 2017 European Railway Performance Index for intensity of use, quality of service and safety performance. To cope with increasing passenger numbers, there

19488-680: The insolvency caused project shutdowns and delays in the UK and overseas (PFI projects in Ireland were suspended, while four of Carillion's Canadian businesses sought legal bankruptcy protection), job losses (over 3,000 redundancies in Carillion alone, plus others among its suppliers), financial losses to clients, joint venture partners and lenders, to Carillion's 30,000 suppliers (some of which were pushed into insolvency), and to 27,000 pensioners , and could cost UK taxpayers up to £180M. It also led to questions and multiple parliamentary inquiries about

19656-521: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

19824-415: The internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies. International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm . The latter is also known as

19992-460: The largest recipients. However, 70% of foreign direct investment went into developed countries in the form of stocks and cash flows. The rise in the number of multinational companies could be due to a stable political environment that encourages cooperation, advances in technology that enable management of faraway regions, and favorable organizational development that encourages business expansion into other countries. A multinational corporation (MNC)

20160-474: The laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control". As of 1992 , the United States and most OECD countries have the donot legal authority to tax a domiciled parent corporation on its worldwide revenue, including subsidiaries. As of 2019 ,

20328-418: The liquidators said they were reportedly close to clawing back around £510M from asset sales, insurance and debt recoveries. The liquidation announcement had an immediate impact on 30,000 subcontractors and suppliers, Carillion employees, apprentices and pensioners, plus shareholders, lenders, joint venture partners and customers in the UK, Canada and other countries. Subcontractors were said to be vulnerable:

20496-509: The list was mainly due to its previous ownership of Crown House Engineering (acquired by Laing O'Rourke in 2004), and previous use of TCA by Mowlem (acquired by Carillion in 2006). Carillion made two voluntary submissions to the House of Commons' Scottish Affairs Select Committee , one in September 2012, and another in March 2013, relating to its involvement with TCA. In July 2014, Carillion

20664-645: The loss of 200 jobs, in July 2019). On 23 March 2018, 160-strong mechanical and electrical subcontractor Vaughan Engineering warned it faced administration after losing £650,000 on two Carillion projects; KPMG were subsequently appointed as administrators, making 83 employees in Broxburn , 43 in Newcastle and 28 in Warrington redundant. Vaughan collapsed owing £9.2M to its suppliers, though one supplier, Bmech, later claimed that Vaughan used Carillion's collapse as

20832-494: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

21000-543: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without

21168-630: The most part in large cities, with the largest conurbations (e.g. Birmingham, Bristol, Cardiff , Edinburgh, Glasgow , Liverpool , and Manchester ) typically having more than one main station. London is a major hub of the network, with 12 main-line termini forming a "ring" around central London . Birmingham, Leeds, Manchester, Glasgow, Bristol and Reading are major interchanges for many cross-country journeys that do not involve London. However, some important railway junction stations lie in smaller cities and towns, for example York , Crewe and Ely . Some other places expanded into towns and cities because of

21336-482: The national network and the company's spiralling costs set in motion a series of events which resulted in the collapse of the company and its replacement with Network Rail , a state-owned, "not-for-profit" company, with risks underwritten by the taxpayer. According to the European Railway Agency , in 2013 Britain had the safest railways in Europe based on the number of train safety incidents. At

21504-411: The near future and ScotRail was brought into public ownership in 2022. Initially, there were 25 franchises, some franchises have since been combined, others nationalised. There are also a number of local or specialised rail services operated on an open access basis outside the franchise arrangements; examples include Heathrow Express and Hull Trains . Many franchises were effectively abolished due to

21672-671: The necessary signalling modifications required of the Network Rail infrastructure in Britain likely to come from the phased rollout of the Europe-wide European Rail Traffic Management System (ERTMS). Following several studies and consultations on high-speed rail, in 2009 the UK Government formally announced the High Speed 2 project, establishing a company to produce a feasibility study to examine route options and financing for

21840-467: The network would eventually be closed. This was never implemented by BR. Passenger services experienced a renaissance with the introduction of the InterCity 125 trains in the 1970s. Passenger levels fluctuated since then, increasing during periods of economic growth and falling during recessions. The 1980s saw severe cuts in government funding and above-inflation increases in fares, In the early 1990s,

22008-509: The new Labour government confirmed that passenger services would be brought back into public ownership upon the expiration of their contracts as part of the wider renationalisation of the rail network. Passenger services in Great Britain were divided into regional franchises and run by mostly private (that is, non-state owned) train operating companies from 1995 to 2020. These companies bid for seven- to eight-year contracts to run individual franchises. Most contracts in England are awarded by

22176-549: The passenger miles. The passenger-miles figure, after being flat from 1965 to 1995, surpassed the 1947 figure for the first time in 1998 and continues to rise steeply. The key index used to assess passenger train performance is the Public Performance Measure , which combines figures for punctuality and reliability. From a base of 90% of trains arriving on time in 1998, the measure dipped to 75% in mid-2001 due to stringent safety restrictions put in place after

22344-560: The price collapse in 1998–1999. The United States still maintains close relations with Saudi Arabia. In 2003, U.S. forces invaded Iraq with the aim of removing the dictatorship and gaining access to Iraqi oil reserves, giving the United States greater strategic importance from 2000 to 2008. During this period, there was a constant shortage of oil, but its consumption continued to rise, maintaining high prices and leading to concerns about "peak oil". From 2005 to 2012, there were advances in oil and gas extraction, leading to increased production in

22512-636: The project. More than a year later, in November 2019, the defective cladding issue remained unresolved. In March 2020, the hospital NHS Trust revealed it was drawing up claims against Carillion's insurers and a Carillion subcontractor, Heyrod Construction. A delayed National Audit Office report into the government's handling of the Midland Metropolitan and Royal Liverpool hospitals was published in January 2020. The report warned of possible further significant cost increases, particularly to rectify

22680-675: The public services carried on by Carillion staff, subcontractors and suppliers. Six UK Carillion businesses, including Carillion plc and Carillion Construction Ltd, were liquidated in the first phase. On 19 January, Carillion (AMBS) Limited was placed in provisional liquidation, and on 25 and 26 January 2018 ten further UK companies went into liquidation. Another business went into liquidation on 2 February, followed by ten more on 16 February 2018. Two Carillion businesses in Jersey and Guernsey also went into liquidation, in January and March 2018 respectively. In June 2018, Carillion ( Qatar ) LLC went into

22848-474: The railway network. Swindon , for example, was little more than a village before the Great Western Railway chose to site its locomotive works there. In many instances geography, politics or military considerations originally caused stations to be sited further from the towns they served until, with time, these issues could be overcome (for example, Portsmouth had its original station at Gosport ). High-speed inter-city rail (above 124 mph or 200 km/h)

23016-435: The railways, with journeys in 2020 being about 22% of the previous year, before rising again as travel restrictions eased. During 2020, all train operating companies entered into emergency measures agreements with the UK and Scottish governments. Normal franchise mechanisms were amended, transferring almost all revenue and cost risk to the government, effectively 'renationalising' the network temporarily. In September 2020,

23184-611: The realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries. One of the first multinational business organizations, the East India Company , was established in 1601. After the East India Company came the Dutch East India Company , founded on March 20, 1603, which would become the largest company in the world for nearly 200 years. The main characteristics of multinational companies are: When

23352-588: The six months to 31 October 2018 – with its CEO blaming Carillion's collapse for the profit slump. In September 2019, Antrim -based electrical subcontractor Blackbourne ceased trading, making 86 staff redundant, partly due to Carillion debts incurred on the Royal Liverpool University Hospital project. At the time of liquidation Carillion employed 18,257 people in the UK. Liquidator PwC began staff consultations over planned redundancies and transfers to new employers. On 2 February 2018,

23520-501: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against

23688-454: The survey started) to 83% in 2013 and the number of passengers not satisfied with their journey dropped from 10% to 6%. Since privatisation, passenger levels have more than doubled, and have surpassed their level in the late 1940s. Train fares cost 2.7% more than under British Rail in real terms on average. However, while the price of anytime and off-peak tickets has increased, the price of Advance tickets has dramatically decreased in real terms:

23856-606: The tilting train Class 390 Pendolino fleet designed for this maximum speed of service were still built and entered service in 2002, and operates limited to 125 mph. Other routes in the UK were upgraded with trains capable of top speeds of up to 125 mph running with the introduction between 2000 and 2005 of Class 180 Adelante DMUs and the Bombardier Voyager DEMUs (Classes 220 , 221 and 222 ). The first implementation of high-speed rail up to 186 mph in regular passenger service in Great Britain

24024-551: The track and infrastructure passed to Railtrack , whilst passenger operations were franchised to individual private sector operators (originally there were 25 franchises) and the goods services sold outright (six companies were set up, but five of these were sold to the same buyer). The government said privatisation would see an improvement in passenger services and satisfaction (according to the National Rail Passenger survey) has indeed gone up from 76% in 1999 (when

24192-542: The treatment of directors' bonuses paid in shares. The May 2018 report of a Parliamentary inquiry by the Business and the Work and Pensions Select Committees said Carillion's collapse was "a story of recklessness, hubris and greed, its business model was a relentless dash for cash", and accused its directors of misrepresenting the financial realities of the business. The report's recommendations included regulatory reforms and

24360-482: The war and the private sector only had two years to deal with this after the war ended. After 1945, for both practical and ideological reasons, the government decided to bring the rail service into the public sector . From the start of 1948, the "big four" were nationalised to form British Railways (latterly British Rail ) under the control of the British Transport Commission . Although BR

24528-405: The word ' carillon ' (a peal of bells), was intended to give the construction business a clearly defined, separate identity, and to distance it from its construction roots. It was proposed by London branding consultancy Sampson Tyrell (later Enterprise IG, part of WPP ). Under CEO John McDonough (formerly at Johnson Controls , and appointed Carillion CEO in January 2001), Carillion expanded into

24696-691: The workers to apply for permission to remain in the UK. MPs on the Home Affairs Select Committee , citing the case of Nigerian-born Hamza Idris, called on the Home Office to display flexibility and compassion, concerned that "scores" more workers might also be affected. In early February 2018, private equity groups Greybull Capital , Brookfield and Endless LLP were said to be interested in acquiring parts of Carillion that might be ringfenced for auction. On 8 February, PwC opened bidding for Carillion's rail division and several of

24864-496: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States

25032-469: The world which means any trains must be significantly narrower and less tall than those used elsewhere. This means British trains cannot be bought "off-the-shelf" and must be specially built to fit British standards. Average rolling-stock age fell slightly from the third quarter of 2001–02 to 2017–18, from 20.7 years old to 19.6 years old, and recent large orders from Bombardier and its acquirer Alstom , as well as CAF , Hitachi and Stadler , brought down

25200-573: The world without a concentration in one area have been called stateless or "transnational" (although "transnational corporation" is also used synonymously with "multinational corporation" ), but as of 1992, a corporation must be legally domiciled in a particular country and engage in other countries through foreign direct investment and the creation of foreign subsidiaries. Geographic diversification can be measured across various domains, including ownership and control, workforce, sales, and regulation and taxation. Multinational corporations may be subject to

25368-503: The worldwide revenue of a foreign subsidiary, and taxation is complicated by transfer pricing arrangements with parent corporations. For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements. Disputes between corporations in different nations

25536-498: Was a single entity, it was divided into six (later five) regional authorities in accordance with the existing areas of operation. Though there were few initial changes to the service, usage increased and the network became profitable. Regeneration of track and railway stations was completed by 1954. In the same year, changes to the British Transport Commission, including the privatisation of road haulage, ended

25704-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and

25872-649: Was first introduced in Great Britain in the 1970s by British Rail. BR had pursued two development projects in parallel, the development of a tilting train technology, the Advanced Passenger Train (APT), and development of a conventional high-speed diesel train, the High Speed Train (HST). The APT project was abandoned, but the HST design entered service as the British Rail Classes 253, 254 and 255 trains. The prototype HST,

26040-448: Was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but

26208-546: Was labeled as "the largest nonviolent transfer of wealth in human history." The OPEC sought immediate discussions regarding participation in national oil industries. Companies were not inclined to object as the price hike benefited both them and OPEC members. In 1980, the Seven Sisters were entirely displaced and replaced by national oil companies (NOCs). The rise in oil prices burdened developing countries with balance of payments deficits, leading to an energy crisis. OPEC members had to abandon their plan of redistributing wealth from

26376-494: Was later built as a patchwork of local lines operated by small private railway companies. Over the course of the 19th and early 20th centuries, these amalgamated or were bought by competitors until only a handful of larger companies remained (see Railway Mania ). The entire network was brought under government control during the First World War and a number of advantages of amalgamation and planning were revealed. However,

26544-575: Was little appetite to bid under a private finance model, and that a PF2 bid would be over £100M more expensive and take six months longer. As a result, the NHS trust sought direct government funding, and on 16 August 2018, the government announced it would provide funding to complete the hospital. Laing O'Rourke negotiated about the Royal Liverpool University Hospital , but the project remained stalled. In early September 2018,

26712-591: Was matched by several Leeds to London Class 91 -operated East Coast trains if their two-minute recovery allowance for this section is excluded from the public timetable. A number of towns and cities have rapid transit networks. Underground technology is used in the Glasgow subway , Merseyrail centred on Liverpool, London Underground centred on London, London Overground and the London Docklands Light Railway centred on London, and

26880-569: Was not in place on the normal British railway network (but was used on the Channel Tunnel Rail Link). A final attempt by the nationalised British Rail at High Speed Rail was the cancelled InterCity 250 project in the 1990s for the West Coast Main Line. Post privatisation, a plan to upgrade the West Coast Main Line to speeds of up to 140 mph with infrastructure improvements were finally abandoned, although

27048-978: Was one of eight businesses involved in the 2014 launch of the Construction Workers Compensation Scheme, though this was condemned as a "PR stunt" by the GMB union, and described by the Scottish Affairs Select Committee as "an act of bad faith". As one of the contributors to the scheme, Carillion reported in August 2016 "a non-recurring operating charge of £10.5M" representing the compensation and associated costs it expected to pay. In December 2017, Unite announced that it had issued High Court proceedings against 12 major contractors including Carillion. Concerns about Carillion's debt situation were voiced in March 2015 by UBS analyst Gregor Kuglitsch who highlighted

27216-691: Was put up for sale for £3M. The building was not owned by Carillion; it had leased it for around £440,000 per annum after it had been bought by an unnamed private investor for £6.165M in January 2016. In July 2018, it was reported that the building had been sold (for an undisclosed sum). At this date, some 140 Carillion staff were still based at the building, working for PwC; over 320 staff had either left or been made redundant. Carillion-owned assets set for auction in July 2018 include 12 car parking spaces at Wolverhampton 's Molineux Stadium , and development land in Rowley Regis and Loughborough . According to

27384-441: Was severely damaged by a series of significant accidents after privatisation. These included the Hatfield accident , caused by a rail fragmenting due to the development of microscopic cracks. Following this, the rail infrastructure company Railtrack imposed over 1,200 emergency speed restrictions across its network and instigated an extremely costly nationwide track replacement programme. The consequent severe operational disruption to

27552-546: Was the Channel Tunnel Rail Link (now known as High Speed 1 ), when its first phase opened in 2003 linking the British end of the Channel Tunnel at Folkestone with Fawkham Junction in Kent. This is used by international only passenger trains for the Eurostar service, using Class 373 and Class 374 trains. The line was later extended all the way into London St Pancras in 2007. After the building of

27720-401: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production

27888-443: Was to go into liquidation (as opposed to administration), the company having issued a notice to the London Stock Exchange "that it had no choice but to take steps to enter into compulsory liquidation with immediate effect". The notice anticipated an application to the High Court for PwC to be appointed as Special Managers, to act on behalf of the Official Receiver . Carillion chairman Philip Green (appointed in May 2014) said: This

28056-496: Was to investigate the timeliness and content of Carillion announcements from December 2016 regarding its financial situation. Ten days later, the BBC reported that the company had "a matter of days" to avoid collapse and that Carillion was the subject of "high level government meetings". These meetings continued throughout the weekend of 13–14 January – covering the company's £900M debts, a £580M pension deficit, and many ongoing contracts for government departments – but broke up without

28224-421: Was to pay £47.7M – later cut to £29.7M – with Carillion losing £1bn from the value of its order book), and was planning to dispose of its Canadian operations to help shore up its finances. A week later, it was announced Carillion was selling its interest in developer Ask Real Estate to West Midlands developers Richardsons Developments for £14M. In December 2017, the Richardsons also acquired Carillion's interest in

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