黑洞社区

A bill proposing the mandated use of project bank accounts on public sector projects has been given the OK for a second reading.

The 10-minute rule bill, which was brought forward by Labour MP Debbie Abrahams (pictured) on the first anniversary of Carillion鈥檚 collapse, is scheduled to be heard again on 1 March.

The Oldham East and Saddleworth MP鈥檚 bill proposes all payments on government and public authority contracts worth more than 拢500,000 be made through a 鈥榩roject bank account鈥� system, ensuring small businesses are paid on time and protected from contractor insolvency higher up the supply chain.

Addressing the House of Commons ahead of this afternoon鈥檚 vote on Theresa May鈥檚 Brexit Plan, Abrahams said: 鈥淚t鈥檚 exactly a year ago today since the construction giant Carillion announced it was going into liquidation. At the time there was widespread concern about what this would mean for the completion of major public sector projects already underway.

鈥淏ut there were also worries for the 30,000 or so small businesses, which as part of Carillion鈥檚 supply chain, were also working on these projects.

鈥淎fter Carillion鈥檚 collapse thousands of these subcontractors lost major contracts and were left reeling with substantial debts.鈥�

Abrahams told MPs the story of a subcontractor from within her constituency, Neil Skinner, whose joinery business Johnson Bros, was owed 拢176,000, or more than 15% of its annual turnover, by Carillion when it went bust.

Abrahams said: 鈥淣eil told me: 鈥機arillion often went over 60 days before they paid me, and I had to do a lot of chasing for that鈥�.鈥�

She also revealed that Carillion had imposed a 15% non-negotiable discount on all work carried out by Skinner鈥檚 firm saying if these terms were not accepted all unpaid invoices would be sent back to their quantity surveyors鈥� department.

According to Abrahams, Skinner said: 鈥淲e reluctantly signed this contract and then they went bust the Monday after signing and 10 days before the first part-payment was due.鈥�