OSWESTRY will get the leisure centre it deserves, residents have been assured. But it will cost more and take longer to build following the ‘last rites’ of builders Frank Galliers Ltd last week.
Shropshire Council is bracing itself for a significant rise in the £7.6m building cost and sport lovers will have to wait until Spring 2011 at the earliest before enjoying 21st century facilities.
However, the good news is that Shropshire Council has re-committed itself to building Oswestry’s Active Lifestyle Centre and had only paid the defunct builders for the work that had already been carried out.
Last week the council was preparing to re-tender for the contract, reported in the construction press to be now worth around £5m.
Steve Charmley, Shropshire Council’s Whittington-based portfolio holder for culture and leisure said the important thing was that Oswestry was going to get its leisure centre.
“It is going to cost a bit more but hopefully it will not be too bad because there are a lot of people keen to take the contract on. My own feeling is that there will be an increase in price but it will not be too dramatic,” he added.
However, there is bound to be a delay because of the changeover plus bad weather and the need for any new contractor to carry out remedial work and recalculations. Whereas the centre was on target to finish in November it could be well into next year before the job is completed.
£10m in debt
Cllr Charmley added: “It is always difficult taking over a project half way through, it does not matter who you are. The good thing for Oswestry is that they are going to get a new leisure centre whatever. And the sooner we get it up and running the better.”
After Frank Galliers went into liquidation last week, 450 anxious creditors heard the liquidators announce the Shrewsbury-based building company had debts of almost £10m when it ceased trading in January 26.
It made 73 staff redundant and left many other local sub-contractors floundering as it sank.
Last Wednesday’s creditors meeting in Telford was told that the principal debt of around £4m was owed to NatWest Bank.
The Ellesmere-based Tudor Griffiths Group was one company owed money - although reports that it had to shed jobs because of the builders crash were refuted this week.
TG’s Aggregates general manager, Philip Jones, declined to say how much the company had lost but said any amount was significant at such a precarious time for the building industry.
He added: “It is significant because it comes off your bottom line in what is probably the worst period the construction industry in the UK has ever seen.”
And he said Galliers had been a loyal customer and the company would miss the future business that relationship would have brought in.
The liquidation meeting saw BDO’s business restructuring partners, Jo Wright and Malcolm Cohen appointed as joint liquidators.
Jo Wright said in a statement to the Advertizer: “It is unfortunate that the economic climate and difficult trading conditions have significantly affected the construction industry. We are looking to realise the assets of the company for the benefit of creditors.”