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Alberta monitors, makes contingency plans on road clearing in U.K. firm bankruptcy

A Carillion Canada snowplow clearing Highway 44 in Rivière Qui Barre, Alta. on Monday, January 9, 2016 after a snowfall. Courtesy: Henry Kieftenbeld

Alberta’s transportation minister says they are making contingency plans to clear and maintain roads as they monitor the financial fallout of a multinational United Kingdom construction company.

Brian Mason said for now they believe the bankruptcy of Carillion PLC won’t affect the operations of its Canadian subsidiary.

Carillion Canada maintains more than 40 per cent of Alberta’s highways.

READ MORE: Carillion Canada, major hospital and road contractor, says it’s soldiering on despite U.K. collapse

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It also has operations in Ontario, including the renovations of Toronto’s Union Station.

Mason said the province privatized road maintenance services under the previous Progressive Conservative government.

He said the government is reviewing road maintenance, but said for now there’s no plan to move away from the privatized model.

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“We’ve certainly looked at the various options (but) I don’t think that that’s a direction that we’re going to be going right now,” Mason said Tuesday.

A spokesman for Carillion Canada has said it’s business as usual in Canada despite the parent company’s collapse on Monday. Cody Johnstone said Carillion Canada is not in liquidation and its 6,000 employees in Canada continue to be paid, along with its subcontractors and suppliers.

READ MORE: Thousands of Canadian jobs at risk after U.K. construction company collapses

The British construction giant went into compulsory liquidation after weekend talks with creditors failed to get the short-term financing it needed to continue operating.

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