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Construction workers who lost their jobs when JP Mauger went into liquidation will get support from the Government, according to the island's Economic Development Minister.
Deputy Kirsten Morel expressed sympathy following the news that JP Mauger had become the second local construction business to enter liquidation this year, following the collapse of Camerons at the end of February.
He said: “The construction industry is clearly going through a period of upheaval, and that will doubtless cause uncertainty for many people, particularly those who are in the industry.
“Employees and their families will be facing immediate uncertainty, and they can access help and guidance from Customer and Local Services, where officers will ensure that they have the help they need to understand all of the financial and employment support that will be made available at this difficult time.”
Pictured: Major building contractor Camerons stopped trading with immediate effect earlier this year.
JP Mauger owner and Managing Director Tadhg MacFirbhisigh confirmed the news in an email to clients, staff, suppliers and subcontractors earlier this week, saying that his firm had struggled for profitable work over the past three years, making it impossible to continue the business as a going concern.
The contractor had 51 employees and was a significant player in the Jersey construction sector, particularly in the building of luxury homes.
Deputy Morel said he hoped that those who had lost their jobs would be able to return to work soon.
“There is no question that islanders who worked for JP Mauger have skills that are valuable to Jersey,” he said. “I’m confident that new employment opportunities will emerge very quickly.”
Pictured: Economic Development Minister, Deputy Kirsten Morel.
Concerns were raised earlier this week that subcontractors and suppliers would face a "double hit" of being owned money by both collapsed construction firms Camerons and JP Mauger.
Jersey Construction Council Chair Simon Matthews said that it was "highly likely" that some firms left out of pocket when major contractor Camerons stopped trading in February would have also worked for, or supplied, JP Mauger
Following the news, former contruction company boss Stephen Regal said that he believed fixed-price contracts were likely to have played a part in the demise of both JP Mauger and Camerons.
Mr Regal, who sold Regal Construction in 2019, said he had opposed proposals by the Government to move to fixed-price contracts 20 or 30 years ago, but that the idea was backed by the Jersey Builders’ Federation on a majority vote.
He added: “I am unable to think of any other sphere of business that any industry would lock itself into fixing prices up to say two or three years ahead.”
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