East Lothian subcontractor ceases trading following the collapse of Ballast

Richard Edward Construction (REC), part of Ballast's consortium for the £43m East Lothian schools PPP, has gone into liquidation.

After earlier reports that 10 companies of the Innovate East Lothian consortium were owed £5m following the collapse of Ballast, REC ceased trading at the beginning of the week and announced 25 job cuts.

Since October, directors of REC have been trying to secure outstanding cash from Innovate, blaming the consortium for the current debacle which has left schools without vital classroom facilities and has disrupted the education of thousands of pupils.

Douglas Edward, a director of the firm, said: "We have traded successfully for five years now and to be forced out of business is a devastating blow.

"Everyone is using the demise of Ballast, the lead contractor on the PPP project, as the excuse to wipe their hands of responsibility but Innovate East Lothian and East Lothian Council have to face up to their responsibilities. We have done everything we can to secure the money that is rightfully ours."

REC is part of a group formed to lobby for payment of money owed to businesses that have worked on the stalled East Lothian PPP project.

Last week subcontractors warned that the real cost of job losses in the fall-out from the project's problems is likely to be close to 1,000.

Other companies involved in the PPP scheme at East Lothian have been forced this week to reclaim their equipment and materials from school sites.