Capita Warns On Profit As It Sets Out Drastic Shake-Up

[mikey4444]

http://www.bbc.co.uk/news/business-42885211

The latest in a series of profit warnings, so time for the Government to give Capitia a few juicy contracts then !

[fiction-factory]

Mikey, I think Krom may have been joking. It's a nonsense to think that the governemnt can employ and manage people directly to build hospitals or develop IT systems and then redeply them to do some completely different project. Third party outsourcing is used by private and publuc sector companies for all sorts of reasons including efficiency, scaleability, obtaining skills they don't have internally, freeing up govt/management from operational problems such as how many bags of cenment to order. If Capita were making a big profit you'd complain. If they don't you are still not happy

[fiction-factory]

Sorry - fingers are clearly too big for my keypad

[mikey4444]

FF.....third-party outsourcing, in its basic form is OK.

But what the Government has done is to give huge sums of money to a firm, like Carillion, and walk away and take no further interest.

As I have explained earlier in this thread, the financial world and his wife knew about the problems that Carillion was in.

Serial profit warnings, together with the introduction of huge waits for sub-contractors to get paid ( 120 days) and the widening deficit in its pension funds, should have alerted everybody to the seriousness of the problem.

But instead, the Treasury still continued to award Carillion with what turned out t be worthless contracts.

There is an urgent enquiry into this affair going on at the moment, so lets hope that it gets to the truth ASAP.

[Old_Geezer]

Hope that the pensions are ring fenced and protected. Hopefully this is just a blip and the company recivers. And a warning about companies being daft enough to hive out their responsibilities elsewhere.

[Old_Geezer]

RECOVERS !

[mikey4444]

OG....the pension schemes are not ring-fenced, and that is the problem. Companies can stop funding them properly, whenever they like, and there doesn't seem to be a damn thing we can do about it.

The only protection comes from the PPF, Pension Protection Fund. But as the scheme comes under more pressure every time a pension scheme folds, it is obvious that the tax payer will be left holding the baby.

That is the principle reason that companies couldn't give a monkeys about their pensioners, because they know that some will always be there to pick up the pieces.

[Old_Geezer]

It's a baby someone has to hold. However it's done. Government allows opt-outs and company pensions, ultimately it's responsible for creating that situation, and encouraging it. And unfortunately they act on the public's behalf and use the public's money to fund those decisions. Well over time pensions were forced to be funded properly and the funds untouchable. Should have been obligatory from the start.

[mikey4444]

OG....we seem to have learned nothing since the demise of this horrible man ::::

http://i.dailymail.co.uk/i/pix/2017/06/26/15/0008404900000C1D-4640102-Robert_Maxwell_pictured_at_a_football_writers_event_was_found_dr-m-64_1498487392623.jpg