SEC Group recently published an article discussing Upper Bann MP David Simpson’s attempts to mobilise support in the House of Commons for a measure that will help transform business practices for small firms in Northern Ireland’s construction industry.
On 9 January 2018 Peter Aldous (MP for Waveney in East Anglia) will be introducing a Bill to ring-fence cash retentions. These are monies withheld from firm’s ostensibly as security in case they do not return to remedy non-compliant work. The monies should be released on completion of the contract. In practice the monies are used to bolster the working capital of the party withholding them.
The Bill will require that cash retentions are protected in a retention deposit scheme.
David Simpson will be urging the Government to provide Parliamentary time for the Bill. He added:
“Recent research published by the Government suggest that the system of cash retentions is widely abused. SMEs across the UK are losing £900,000 worth of cash retentions per working day because of insolvencies up the supply chain. These monies belong to them and are not intended for distribution to creditors of insolvent businesses.”
David Simpson has been praised by individuals such as Alfie Watterson, National Executive Officer for the Northern Ireland Specialist Engineering Contractors’ (SEC) Group, for being a passionate champion of the interests of small firms in Northern Ireland.
What are you thoughts on this? Should legislation be introduced to help transform business practices for small firms in Northern Ireland’s construction industry?
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