Building Halted As Bank Calls In Debt

Social housing schemes in the greater Belfast area has stalled after a bank - recently bailed out by the taxpayer - forclosed on the contractor.

The BBC in NI has reported that the various developments, by Downpatrick-based company Polly Brothers, were funded by Stormont's Department of Social Development.

However, the Ulster Bank has moved against the company and work has stopped on three out of four of its sites.

The sites affected are at North Howard Street in west Belfast, Gleneagles Gardens at Dundonald and Brookhill Avenue in north Belfast.

According to administrators, PwC, Polly Brothers' development at Clonard is the only one where work is continuing.

The Gleneagles, Brookhill and North Howard Street developments are being built for the Helm Housing Association.

PwC said it was trading the company in administration.

It said work would not resume on the three Helm sites until it reached agreement with the housing association as to how the buildings would be finished and the outstanding work paid for.

The BBC has been unable to get a comment from Pollys and the BBC reported last night that Ulster Bank refused a request from the company to give them more time to sort out its finances.

Last month, Chancellor Alistair Darling was forced to defend government plans to inject a further £30 billion of public money into two troubled banks — insisting the taxpayer was getting a "better deal".

He said that progress was being made in the recovery of beleaguered banking giants Royal Bank of Scotland and Lloyds as he confirmed plans to give them more public cash in return for significant restructuring.

The already part-nationalised RBS, which owns Ulster Bank, will get anther £25.5bn from the government in the move which was forced on the banks to appease European competition fears.

(BMcC/KMcA)