Civil firm enters administration
York Civil has gone into voluntary administration despite its involvement in several major infrastructure projects throughout Australia.
The South Australian firm made the announcement this week, saying it would meet with key stakeholders and clients ahead of a creditors meeting next Thursday.
York Civil is involved in Adelaide's $800 million Torrens to Torrens road project, North Terrace tram extension and Main South Road widening.
It is also part of defence, power, transport, resources and marine projects nationwide.
The company currently employs more than 400 people, according to its website, and says the work on some of the major projects will not be delayed.
“At this stage, the company will continue work on the contracts which are subject to the administrators' review,” administrator Ferrier Hodgson partner Martin Lewis said.
SA Transport Minister Stephan Knoll said the company has assured him projects would not be delayed.
“The advice that I have in relation to the two major projects, the city tram extension project and the Torrens to Torrens project is because they're both under a joint venture arrangement, that the other partners to that joint venture take up the responsibility and the liability in relation to the delivery of those projects,” Mr Knoll said.
“We're working with the administrators and also with those two special purpose vehicles to make sure that those responsibilities are taken up.”
Opposition transport spokesperson Tom Koutsantonis blamed the lack of infrastructure projects promised by the Liberal Party at the March state election for York Civil falling into administration.
The new State Government did not release its June budget until September 4.
“There is a valley of death in infrastructure spending that we warned about — and it's here,” the former treasurer said.
“Its first victim is a great South Australian company with nearly 30 years worth of history here in South Australia gone.”
Mr Knoll denied the state was entering a civil construction “valley of death”.
“Upon coming to government, I think that the opposition left us with a pretty bare cupboard and very early on we were able to go to the Federal Government and secure $1.8 billion worth of new money for a range of infrastructure projects,” he said.