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SEC meets Mandelson to discuss payment issues

Members of the Specialist Engineering Contractors Group have met with Lord Mandelson to discuss payment issues following a statement in the House of Lords last month to improve cash flow for SME’s.

Lord Mandelson said he would seek to improve cash flow by requiring public sector purchasers to pay their bills within ten days.

The impact of the current economic crisis on SME’s in the construction sector was highlighted to the secretary of state for business, enterprise and regulatory reform Lord Mandelson.

Claire Curtis-Thomas MP, who led the SEC Group delegation said: “The implementation of project bank accounts across UK construction would revolutionise payment practices in the construction industry –and, at the same time, make a significant contribution to resolving the current problems affecting SMEs.”

SEC Group chairman Trevor Hursthouse said that a positive response from Lord Mandelson to this proposal could significantly reduce the risk of widespread insolvencies across construction.