Jobs At Risk As Red Sky Dims

The construction and maintenance firm, Red Sky, has gone into voluntary administration.

There are now fears over staffing after the NI Housing Executive (NIHE) last week cancelled all maintenance contracts with Red Sky following a top-level inquiry into the contractor's work.

An investigation by the NIHE was said to have found "significant concerns about the company's performance, including overcharging".

The east Belfast-based firm, which specialises in fast response maintenance and repairs had five contracts throughout the city worth an estimated £7m. These will end within the next three months.

In a statement, a spokesman for Red Sky said: "While our bank continues to be very supportive, the sudden and unexpected action by the Northern Ireland Housing Executive has left the directors of Red Sky with no alternative but to voluntarily put the business into administration.

"In our view this action is in the best interests of the company and the employees and is the most realistic means by which Red Sky can continue as a going concern, following this temporary measure. That is our overriding priority.

"Employees across the Red Sky Group incorporating Bel Air Refrigeration Ltd, have been informed of this decision this morning (Tuesday)."

BBC NI carried out an investigation in 2010 and said they discovered "a number of Executive tenants who were very unhappy about the level of service they received and the standard of repairs carried out to their homes".

At the time Red Sky told the broadcaster that it has had maintenance contracts with the Housing Executive for over 15 years, that it implements rigorous quality control standards and is proud of its level of service.

They emphatically denied suggestions of sub-standard work or financial irregularities. The company also said that it has never made any spurious allegations of religious or political discrimination.

The East Belfast DUP Assembly candidate, Robin Newton, who also served as a Junior Minister in the Office of the First Minister, has expressed concern about the potential loss of 400 jobs in the Red Sky Group.

"The implication of this company being under threat is significant for our economy. The loss of 400 jobs cannot be taken lightly," he said.

See: NIHE 'Terminates' Red Sky Contracts