Carillion Rail will not be allowed to bid for new rail projects until its safety performance improves

Carillion has been banned by Network Rail from bidding for new rail projects until its safety performance improves.

In a statement Carillion conceded that there had been an increase in “less serious workplace accidents between mid June and mid July", blaming it on a restructuring of the rail business, but said that the suspension was an over-reaction.

The statement from Carillion said: “We believe that Network Rail’s decision is wholly disproportionate to our overall performance."

Simon Kirby, director of Major Projects and Investments at Network Rail, said: “Network Rail is raising the bar on workforce safety and Carillion Rail must improve its record in this area if it is to attract new rail business. We want to give Carillion Rail the opportunity to focus on improving safety performance while delivering current contracts, rather than concentrating on bidding for new business.”

Around 5% of Carillion Rail’s annual revenue is derived from Network Rail contracts and the company said that the suspension would have no material effect on its results for either 2006 or 2007.