Government asked to prevent credit cover withdrawal
The CBI’s Construction Council chairman John McDonough has called for measures to counter the sudden withdrawal of trade credit insurance by insurers.
“A big issue affecting construction firms is trade credit insurance. Firms need to be confident their cover isn’t going to get pulled unexpectedly half-way through a contract,” he said.
“The construction industry employs more than two million people and accounts for nearly a tenth of our GDP. Without urgent action to support this sector, we will be inflicting long-term damage to the economy.”
The CBI set up its Construction Council, chaired by John McDonough, chief executive of construction giant Carillion, in July last year. McDonough was speaking after the council’s second meeting yesterday.
