THE collapse of the UK’s second-largest construction firm Carillion is likely to have “only a little direct impact” in Wales, finance minister Mark Drakeford has said.

The company, which held a number of large public projects, went into liquidation on Monday following heavy losses and large debts.

Carillion was also the construction partner of Dutch company Abellio, which is bidding to run the Wales and Borders rail franchise – which will include the South Wales Metro – from October.

Speaking in the Assembly on Tuesday, Mr Drakeford said: "Although we expect only a little direct impact, the liquidation of Carillion will have little impact in Wales.

“The Welsh Government will do everything within its ability to assess Carillion staff who are affected here.

“Welsh Government officials continue to assess any further impacts in a situation that continues to develop swiftly.”

On Abellio’s bid, he said the Welsh Government was “in discussions” with the company.

“The company itself is taking action to make sure that it is in a position to go forward with a bid, if it chooses that course of action,” he said.

“And the Welsh Government remains committed to a final outcome in the tender process, which leads to the improvement in services that people in Wales wish to see secured.”