A Welsh building firm has gone into receivership citing withheld payments of around £23,000 for work on a new rail link for Welsh Highland Railway Construction.
Porthmadog Services, based in Penrhyndeudraeth, had moved a building front to make way for the new line to Porthmadog.
The firm claims that it has been owed £18,000 by Welsh Highland Railway Construction since November and a further £4,000 is outstanding from February.
Welsh Highland Railway Construction, a subsidiary of Caernarfon-based Dinas Works, has received £4.9 million in public grants.
Porthmadog Services’ boss Gareth Jones told the North Wales Daily Post that his company was forced into receivership because other companies had not paid them for work carried out.
The biggest outstanding sum was owed by Welsh Highland Railway Construction.
He said: “We’ve now gone into receivership. They’ve had money from WEFO (Welsh European Funding Office) to build the railway line and are refusing to pay a local contractor. I employ 15 local lads but I’ve had to let four go.
“They should not be allowed to get away with this – causing a local company to go into receivership because they haven’t paid.”
Welsh Highland Railway Construction’s Alasdair Stuart said: “We have explained to Mr Jones, who ran Porthmadog Services Ltd, the law requires that any monies payable to Porthmadog Services Ltd cannot be paid to him (or any other firm that he may now operate) but only to PKF as the liquidators of the company.”