Following the collapse of Carillion, Britain's second largest construction firm, assurances have been sought by Montgomeryshire Assembly Member, Russell George, about the future of major construction projects in Mid Wales including the Newtown Bypass.
The firm, which employs 20,000 people in the UK, went bust on Monday (15th January) with debts of about £1.5 billion.
The firm is involved in a number of current transport projects in Wales including the West Wales Bypass, improvements to the A55, and the South Wales Metro.
Following Carillion’s liquidation and after questioning the Cabinet Secretary for Finance in the National Assembly for Wales, Mr George said:
“The collapse of Carillion threatens ongoing projects and jobs, and in addition threatens progress on the long term development of the Welsh economy.
“It is deeply regrettable that the company has not been able to find suitable financing options with its lenders.
“Carillion has significant involvement in Wales on a number of key projects and I had the opportunity of questioning the Welsh Government on the ramifications of the company’s collapse on schemes such as the A40, A55 and the company’s role as a partner for Abellio in the potential rail franchise.
“The Cabinet Secretary confirmed that they expect for there to be “little direct impact” but that they will continue to closely monitor the indirect exposure of Carillion’s collapse on small and medium sized companies in Wales.
“I was also pleased to have gained assurances from Alun Griffiths Contractors who are managing the construction of the Newtown Bypass that it will not be affected at all by Carillion’s collapse and that the construction of the bypass remains on track for completion in 12 months’ time.”