Stimulus plea as insolvencies peak

The construction industry is calling for more public investment to stimulate the sector.

New insolvency figures show 98 firms went bust in the first six months of this year. This compares with 89 in the same period last year, 90 in the first half of 2010 and 35 in the first half of 2009.

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Wider figures published last month by the Accountant in Bankruptcy show record levels of insolvency on average across companies in Scotland.

Michael Levack, chief executive of the Scottish Building Federation, said: “Official figures seem finally to be catching up with the harsh reality so many Scottish building firms are facing.

“Once again, I have to repeat my plea that government at every level takes the action needed to stimulate industry activity.”