Another day, another company that couldn’t make it in National’s stagnant economy. But this company, Mainzeal, is a particularly significant case, our third largest construction company:
Why Mainzeal fell into receivership
Construction projects worth hundreds of millions of dollars are in limbo after one of New Zealand’s largest construction firms was put into receivership.
Mainzeal Property and Construction’s receivership yesterday sent shockwaves through the building industry and put the income of hundreds of employees and subcontractors at risk. The company was founded in 1968 and directly employs more than 400.
Industry sources said the flow-on effects would be major, particularly for the small businesses that largely make up the sector. “It’s bad news for subbies. Even if they do get paid ultimately, they can wait a long time,” said one source. Mainzeal is NZ’s third biggest construction firm, behind Fletcher and Hawkins…
There seem to have been a number of reasons for the closure, among them the legacy of National’s leaky building crisis. But the bottom line is that despite the energy of the Christchurch rebuild, a major player in our construction sector couldn’t make it. How much longer will the Nats and their spinsters go on claiming that there is no crisis?