The New South Wales Labor Opposition has taken the extraordinary step of claiming a construction business is on the brink of collapse, urging the Government to step in and save the contractor from going under.
Opposition leader John Robertson has said in a statement that Reed Constructions is on the verge of collapse and 1500 jobs are at risk, even saying that contractors haven’t been paid in several weeks.
“Barry O’Farrell needs to intervene immediately to stop the loss of another 1500 construction jobs in NSW,” Robertson said in a statement.
“These 1500 subcontractors are working on NSW government-funded roads, schools and major civic buildings like the Supreme Court, but many of them haven’t been paid in months.”
In a statement to SmartCompany this morning, Reed Constructions managing director Geoff Reed said the company was working out issues relating to payments carried out for Roads and Maritime Services, along with the Building the Education Revolution Program.
However, it said it would not make any other comment at this stage.
Robertson claimed in his statement that one contractor is owed about $280,000 for work completed on the Great Western Highway.
“This contractor has repeatedly tried to get in touch with the Minister for Roads and the Department but he’s been told the Government will not intervene,” he said.
The Construction, Forestry, Mining and Energy Union also released a statement, saying the industry is in crisis and the Government should do all it can to rescue Reed Construction, claiming between $60-80 million is owed to 1500 subcontractors.
“These small businesses are the lifeblood of the industry, employing thousands of workers in NSW,” secretary Brian Parker said in the statement.
“The collapse of the Kell & Rigby Group and now possibly Reeds is devastating for the industry, devastating for the many people left without payment, and devastating for workers left without entitlements and employment, and also devastating in terms of confidence in the industry.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
