WHAT SHOULD WE BE SAYING TO NEW MPs ON RETENTIONS?
Following the General Election there is further opportunity to email/write to your newly elected MP and ask them to support us on eradicating the unfair practice of cash retentions.
We want to get their commitment that they will support the change we are seeking in the new Parliament.
Over the last couple of years there has been a great deal of activity over cash retentions and SEC Group has been campaigning for statutory protection for retention monies.
Amendments were laid to Government legislation going through Parliament. The Cameron government commissioned a review of the retention system; this is now overdue but we try to keep the issue alive –it was highlighted in previous Parliament.
So, some thoughts on what to ask/say to your MP:
- Introduce your business and alert them that cash retention is a key issue that needs to be resolved.
- You are a small business; cash retentions are seriously damaging your business and you can say how (how much retention is outstanding; any insolvency losses; cost of chasing retentions; time taken to release the monies).
- Her Majesty’s Revenue and Customs agrees with you: “In recent years, construction industry customers have become increasingly reluctant to pay retention monies, irrespective of whether there are defects to be made good. It is now common for such monies never to get paid.”
- This cannot continue – the system is unfair and outdated.
- Will the MP support legislation to protect cash retentions by ring-fencing them in a trust account? Such legislation exists in Europe, the United States and Australasia.
- Ask the MP to email you indicating their commitment to support legislation on this and pass on to us through your trade association any feedback to help continue us with the fight.
Or you can download this template letter if easier: Letter to your new MP (June 2017)