UK firms bust after Guernsey contracts

Three UK firms have now gone under after taking on contracts in Guernsey.

Swindon-based Concept Developments was the first, after reportedly failing to be paid for its work on Guernsey Airport's £16m terminal. Managing director Colin Hennion claims main contractor Hochtief still owes Concept a sum of £1.5m, a claim Hochtief denies.

Scottish demolition firm Scotdem, which had been demolishing a former prison on the island, went into liquidation on 6 June, while Howlett Marine Services went into liquidation this week after working on one of the ro-ro ramps at St Peter Port Harbour.

All three firms owe money to local firms in Guernsey, with many struggling to stay afloat.

Questions are being asked of the States of Guernsey, with one minister requesting that the senior committee president responsible for construction should step down.

Junior housing minister Dave Jones told CJ: "To avoid another contract disaster, serious questions have got to be asked over the suitability of senior committee presidents and their staff who appoint contractors for States projects."