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25/07/2018

More Than 400 Subcontractors Left Unpaid Following Sammon's Collapse

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Irish Labour Party Leader, Brendan Howlin, has called for a resolution "as soon as possible" for subcontractors left out of pocket following the collapse of construction group, Sammon.

More than 400 subcontractors working to deliver school buildings around Ireland have been left unpaid after the Kildare-based company went into liquidation in June.

Hundreds of firms are owed thousands of euros for their work after Sammon fell into liquidation due to financial issues caused by the collapse of Carillion in January.

Labour Party Leader and Wexford TD, Brendan Howlin, along with a delegation of subcontractors impacted by the liquidation of Sammon, attended a meeting with the Office of Government Procurement and the NDFA in Dublin.

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Following the meeting, Deputy Howlin, said a resolution for subcontractors, schools, and state is needed before the September school term begins.

"Over 400 subcontractors who have provided materials and construction services for a number of school buildings around the country have been left unpaid and with no guarantee of remuneration. 10% of these have subsequently folded," he said.

"The main priority for the Department of Education, and for the locals of all these areas awaiting school buildings is to have the buildings be ready to go in September. It is in everyone best interest to have these issues resolved before then so that the subcontractors are fairly treated and the schools are up and functioning by in time for the new school term.

"If this issue is not resolved there will be an extra cost for the State, and the PPP company, in building and maintaining prefab buildings while these school buildings lie empty. Until these buildings are completed and certified they cannot open to students.

"These subcontracts have tens of thousands of euros worth of materials unpaid for in these schools - this is an unacceptable reality for them and should be for the Government. We are calling on the Department of Education, the NDFA, and the OGP to come together as soon as possible, meet with these subcontractors and reach a fair resolution."

(LM/MH)

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