A failed electrical and communications company is now believed to owe more than $7 million to Tasmanian businesses.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
After going into voluntary administration in September, Tasmanian company Russell-Smith was said to owe at least one million dollars to creditors.
However a union representative who attended a meeting with administrators on Tuesday claimed the amount was seven times higher than the original figure.
Communications, Electrical and Plumbing Union Tasmania state organiser Mick Anderson said the situation was “much worse than the union expected”.
“Our biggest concern is that in only two years of operation, this company has racked up more than $7 million in debt, that’s money owed to the Tasmanian building industry that won’t be recuperated,” he said.
“There needs to be more checks and balance in place to prevent it getting to this point. So when there are early warning signs, the hard questions are asked.”
Despite the claims from the union, the administrator “could not confirm the final figures until investigations were complete”.
“The administrators from Jirsch Sutherland will now work on finishing quantifying employee entitlements, realise the company’s assets and undertake detailed investigations into the affairs of the company,” voluntary administrator Stewart Free said.
“A detailed report to creditors will be issued in the week commencing October 17, with the second meeting of creditors to be held in following weeks.”
Russell-Smith had offices in Launceston, Devonport, Burnie and Hobart.