North Midland launches payment probe

North Midland Construction has launched an investigation into claims that contractors on a £30m cable laying job in north Wales are not paying their subbies.

Trade contractors owed cash on the job fear they could go out of business if they are not paid.

Among those owed money are a haulage contractor in north west Wales which is due £30,000 and a Cheshire construction company which has £250,000 outstanding.

One contractor told the BBC: "It is one of the biggest utility contracts in the country and we thought with the present climate that there is plenty of work to go out but obviously we haven't been paid for it.

"We have been at the work since mid summer and we have worked very hard but payment has not been forthcoming.

"I had lads to pay at Christmas, I had my VAT to pay at Christmas and obviously the tax wants paying too."

Subcontractors claim they are owed money by a Manchester-based firm called United Formwork.

The BBC tried unsuccessfully to contact the company by phone.

The £30m Fibrespeed project has seen 200 miles of optic fibre cable laid from Holyhead on Anglesey to Manchester.

Work to lay the cable has involved digging up roads and pavements and repairing them.

The Welsh Assembly said people waiting for payment on the Fibrespeed project were not employed by it or its main contractor Geo.

But a spokesman said it was concerned by the allegations and the impact non-payment could have on individuals and their families, particularly in the current economic climate.

An investigation is being carried out by Geo and its main contractor North Midland Construction, which will be reporting on their findings in the next few days, said the spokesman.