Labour warning for contractors

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Contractors who supplied employer-led Training and Enterprise Councils, National Health Service trusts and GP fundholders can be out of pocket if the organisations went into receivership, Harriet Harman, Labour employment spokeswoman, warned yeste rday. She said creditors of the bankrupt South Thames TEC were facing financial problems because the Government had so far refused to honour debts.

Mr Paice said the Government had guaranteed debts back to last 7 November but the situation at South Thames would not apply to other councils or private organisations delivering a public service.