Treasury sunk us - Corfe

Certain councils and further education authorities used the financial problems of failed builder Tysons to delay payements, so hastening its collapse, it was suggested this week.

Receivers Price Waterhouse were called in to Liverpool-based Tysons on Wednesday after the œ25 million a year firm collapsed with debts of œ8-10 million. Around 120 of the 169 staff have since been made redundant, and the receiver is struggling to sell remaining contracts valued at œ1-1.3 million.

Brian Corfe, group md of Tysons' parent, Donelon Tyson, claims certain clients took advantage of the builder's financial problems arising from long running disputes, including Ellesmere Port. 'In my belief some employers have taken advantage of that situation and been very slow in progressing in contractual issues that should have led to an entitlement. I include in that local authorities, and certain higher education authorities.'

Corfe said relentless Treasury pressure was forcing local statutory authorities to 'take a very aggressive line in matters outside their original budget estimates.' He particularly criticised the estates action programme, claiming certain local authorities often seriously underestimated refurb periods, then refused to negotiate reasonably with the contractor over his loss and expense.

Amid similar complaints from other Liverpool contractors, such as Hanks Construction, Corfe complained to local Labour MP Bob Parry, but was disappointed with the results. He also wrote three times to Virginia Bottomley about difficulties with the compilation of select tenders lists for hospital trusts, and was again let down.

'I didn't even get a reply. I'm very disappointed with the way this Government behaves towards the construction industry. It's the second largest industry and they think they can just wash their hands of us and leaves us to sort out our problems without any further support.'

He added that the directors of Donelon Tyson would 'as a matter of principle' continue to pursue money owed by recalcitrant clients.

A spokesman for the receiver admitted a going-concern sale has been practically ruled out, and said some of the contracts had such little value they would be difficult to novate.

Interest is understood to have come from 'several regional firms and one or two nationals'. Try - often a potential predator - has ruled itself out from bidding, saying Tysons was 'desperately run down... when we did our sums there was no asset value in the contracts.' However, Amey - which already has a local building arm, Hind - is understood to be showing interest.

Tysons' sister company Donelon continues to trade profitably.