Carillion issues still being addressed
It’s been reported that MP for Waveney, Peter Aldous, has tabled a private members bill calling for cash retentions to be placed in trust following the collapse of Carillion. Political support for the move has grown, with over 100 MPs already in favour of ring-fencing subcontractors’ money.
The number of cross-party MPs supporting retention reform has jumped 10-fold since Carillion collapsed in January, six days after the first reading of the Aldous Bill which seeks to place retentions into independently held protection schemes.
Engineering specialist trade bodies – BESA, ECA and SEC Group – believe there is now a groundswell of support in Parliament to push through the Bill as it comes up for a second reading on Friday 27 April.
In the wake of the Carillion collapse, a coalition of over 75 bodies, representing over 340,000 businesses, has united behind Peter Aldous’ retentions reform efforts and next week will present a petition to 10 Downing Street.
The industry support for reform to outdated payment systems is at unprecedented levels. The petition being presented represents over 330,000 businesses and there are over 100 MPs supporting the reform to the practice of cash retentions.
It is a huge opportunity to improve the industry for the better, level the playing field for SMEs and protect thousands of jobs.
The industry loses around £1m for each working day, mostly from SMEs. There have been proposals to stop the abuse of retentions before, but this time there is the largest coalition on fair payments ever.
In his Spring Statement last month Chancellor Philip Hammond vowed to crack down on late payment culture by issuing a call for evidence on how “the continuing scourge of late payments” can be eliminated.
We come across the issue of contractors having to deal with both the late and non-payment of invoices and fully support any moves that will benefit them.
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