Government contractor puts 1500 jobs at risk
The NSW Opposition is calling on Premier Barry O'Farrell to intervene immediately following news that major Government contractor Reed Constructions is on the verge of collapse – putting more than 1500 jobs at risk.
Opposition Leader John Robertson said Labor understands that around 1500 subcontractors are owed between $60 million and $80 million by Reed Constructions – for work completed on State Government funded projects.
"Barry O'Farrell needs to intervene immediately to stop the loss of another 1500 construction jobs in NSW," said Mr Robertson.
"These 1500 subcontractors are working on NSW Government funded roads, schools and major civic buildings like the Supreme Court – but many of them haven't been paid in months.
"Reports suggest that Reed Constructions could be on the verge of financial collapse – leaving 1500 subcontractors out of work.
"One contractor who contacted my office yesterday is owed around $280,000 for work completed on the Great Western Highway. This contractor has repeatedly tried to get in touch with the Minister for Roads and the Department – but he's been told the Government will not intervene.
"These are Government funded projects and the Government needs to take responsibility for this mess, starting today."
Shadow Treasurer and Minister for Finance Michael Daley said the Premier's record on jobs has been woeful from day one.
"Barry O'Farrell went to the election promising to create 100,000 jobs in NSW – but instead 23,000 jobs have been lost since the Liberals and Nationals came to office," said Mr Daley.
"A whopping 23,000 jobs have been lost since March 2011 and now things are getting worse with a further 500 cuts announced from construction firm Kell and Rigby, 190 from manufacturer Reckitt Benckiser and hundreds more by the big four banks.
"If Reed Construction collapses – another 1500 jobs will go in a major hit to the NSW economy.
"NSW is haemorrhaging jobs under Barry O'Farrell but the Government is doing nothing to stop the bleeding.
"Time to put your money where your mouth is Barry O'Farrell – show us how you will protect these 1500 workers whose livelihoods are on the line, and do it today before it's too late."
Tags: Barry O'Farrell, construction, economy, finance, Industrial relations, jobs, John Robertson, Michael Daley, Reed Constructions, roads