Lib Dems demand answers on Jarvis
The Liberal Democrat treasury spokesman has written to the Government asking if there are any continuity plans in place if Jarvis is declared bankrupt.
Shares in Jarvis have fallen by over 50 per cent after it announced a series of write-offs on Friday. Total write-offs, mainly in regard to its accommodation division and exit from rail maintenance, will total at least £146 million.
In addition, debts stand at around £230 million- a figure that Jarvis admits is too high given its reduced turnover.
The group’s lenders have agreed to give Jarvis until July 30th to sort out its finances but some analysts predict the banks may call in the loans and leave Jarvis bankrupt.
Jarvis, whose public image was shattered after the Potters Bar derailment, is the contractor in a number of Private Finance Initiative (PFI) deals to provide schools and universities with buildings, and the Liberal Democrats are warning that its bankruptcy would cause chaos.
Dr Vince Cable said: “Dozens of schools and universities around the country will be left in the lurch if Jarvis goes bankrupt.
“They are relying on Jarvis to provide vital services, managing university student accommodation, building and maintaining new school classrooms and other facilities.
“I have today written to Charles Clarke asking the Education Secretary to give urgent attention to this matter, and give clear guidance to schools and universities on what they should do in the event that Jarvis does go bankrupt.
“Parents and teachers need urgent clarification that there will be no disruption or crisis within schools or universities if Jarvis is unable to continue operating.”
In further bad news for the troubled company, it has just been confirmed that it will be fined £400,000 over maintenance failures that led to a derailment of a coal train.
