Cabinet Office promises Interserve subbies will get paid

Grant Prior 5 years ago
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The Parliamentary Secretary at the Cabinet Office has assured Interserve suppliers that they will get paid despite the contractor’s pre-pack administration.

Oliver Dowden was speaking during a House of Commons debate on the Interserve situation.

Fellow MP Alex Chalk asked: “Can the Minister confirm that no subcontractors, whether in my constituency or elsewhere, have been adversely affected in this case? ”

Dowden replied: “First, straight off the bat, I can give suppliers in his constituency that assurance.

“There is absolutely no change in the status of the credit rights of those suppliers who are providing services, as the operating companies remain unaffected; it is the ownership that has changed.”

The pre-pack deal only saw the plc business collapse with the rest of the limited companies within the group – including construction – remaining solvent.

Dowden also revealed that he had recently hauled in two major Government suppliers over their supply chain practices.

He said: “That is a major issue. I have twice already brought in strategic suppliers and reminded them of the importance of paying their subcontractors on time, and we are backing that up with action.

“In November, we announced a prompt payment initiative to ensure that, in future, if they fail to pay their suppliers on time, they will be excluded from Government contracts.”

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