Oral Answers to Questions

Stuart C McDonald Excerpts

Tuesday 27th June 2017 Commons Chamber

[Greg Clark]

I welcome the hon. Gentleman back to his place. In fact, I think that Labour’s whole Front-Bench team has been reappointed. It is nice to see loyalty rewarded. The hon. Gentleman is absolutely right, and I thought that he would welcome the Prime Minister’s very positive statement. It is important that the process is implemented with no bureaucracy so that people can apply with confidence.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

3. What his policy is on the non-release or late release of cash retentions in the construction industry.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

Unjustified late and non-payment of a retention payment or any amount owed is unacceptable. These practices cause particular problems for small businesses in the construction sector, and the Government are committed to tackling them. We will shortly be publishing research into these issues, alongside a consultation document.

[Stuart C. McDonald]

The system of cash retentions has been wreaking havoc in the construction industry for decades. Can the Minister assure us that there will soon be radical action to overhaul the system, and can she explain why it has taken so long?

[Margot James]

There is, indeed, far too much abuse of the system of cash retention, and it has been going on for too long. The burden of administrative time spent securing payments and the drain on working capital weigh far too heavily on smaller firms in the supply chain, and I can assure the hon. Gentleman that we will be taking action.