CASH RETENTIONS IN THE CONSTRUCTION INDUSTRY

Early day motion 457, tabled 16 March 2001 by David Tredinnick (Conservative). Signed by 115 members.

That this House applauds the moves now under way in the public sector to abolish the much abused system of cash retentions in the construction industry, which over many years has operated to the detriment of the profitability and competitiveness of the vast majority of firms in the industry, especially small businesses; believes that the system should not be perpetuated by public sector procurers who are committed to being best practice clients of the construction industry; urges the Chief Secretary to the Treasury, in conjunction with the Office of Government Commerce, to announce a programme for the phasing out of the retention system in respect of construction works procured by central government clients; and calls for the Secretary of State for the Environment, Transport and the Regions to issue a circular to local authorities in England and Wales advising local authorities to refrain from demanding retentions on all new contracts for construction works that are left following a date to be agreed between the Secretary of State and the Local Government Association.

Signatures by party: Labour 68, Liberal Democrat 16, Conservative 13, Labour/Co-operative 12, Scottish National Party 3, DUP 1, Social Democratic and Labour Party 1, UKUP 1.