Job fears at construction firm

Published: Tuesday, 10 March 2009, 1:45PM

Hundreds of jobs are at risk after the Wrekin Construction Group, which banks with RBS, went into administration.

The Shropshire-based firm, which employs up to 600 workers across the UK and hundreds more indirectly, said it had millions of pounds worth of orders.

Conservative MP Mark Pritchard (The Wrekin) said the firm had been forced into administration because of the bank's "inflexibility" in releasing funds.

He said: "This is a long-standing and successful company with a large order book which has been driven into administration by the inflexibility of RBS.

"Some of the blame has to fall on the doorstep of 10 Downing Street, given the Government's majority shareholding in RBS."

The MP said the administration had been caused by RBS not releasing funds for cashflow even though the firm had an order book he said was worth tens of millions of pounds.

The company was established in 1960 and its work includes motorway and highway construction, refurbishment work to canals, rivers, rail routes, rail infrastructure, sewers and drainage.

On Monday, Wrekin Construction announced it had been awarded a contract by Defence Estates for construction work at RAF Menwith Hill, due to start later this month.

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