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Retentions go to inquiry

THE CONSTRUCTORS Liaison Group has been boosted in its fight against the retentions systems after a House of Commons committee announced it would probe the issue this autumn.

The CLG was informed this week that the parliamentary trade and industry select committee at Westminster has decided in principle to conduct an inquiry into the impact of retentions on the construction industry. The inquiry will be chaired by Labour MP Martin O'Neill.

CLG secretary John Nelson said:

'This is a positive development. The members of the select committee have shown by including retentions on their agenda that they recognise the concerns of many of their constituents - in particular the burden on small and medium-sized firms in the construction industry.'

More than 120 MPs supported the CLG's move to raise the issue in parliament earlier this year by signing an early day motion.

The body estimates up to £3 billion is held in retentions at any one time in the industry.