The Courier & Advertiser (Fife Edition)
McGill faced wrath of HMRC over unpaid tax
Collapsed firm was about to be sued over outstanding bill
Collapsed Dundee construction services firm McGill and Co was about to be sued by HMRC over an unpaid tax bill.
Nearly 400 people lost their jobs when the Dundee firm was plunged into administration on February 1.
Scottish Enterprise, which had been criticised for refusing to issue a crisis loan to McGill, released hundreds of documents online last night in response to freedom of information requests.
They revealed that up until January 17 Scottish Enterprise was still favourably considering a loan.
But KPMG, who were appointed administrators of the company on February 1 and had been advising Scottish Enterprise, said it would take too long to carry out due diligence on the company’s turnaround plan and the plea was rejected on January 30, the same day HMRC said it would take legal action to recover PAYE and National Insurance taxes owed to it.
Forty-eight hours later, McGill’s staff were summoned to a meeting at the Apex Hotel in Dundee where they were told they were losing their jobs.
Earlier that week McGill’s bank Santander withdrew McGill’s overdraft facility because no loan from Scottish Enterprise had been agreed.
An update provided to business minister Jamie Hepburn on January 30 stated: “Scottish Government colleagues have been advised today that HMRC has written to McGill to advise that, while its seven-day period for submitting a payment proposal does not expire until tomorrow (January 31), no proposals have been received to date and HMRC will now therefore continue legal actions.”
An HMRC spokesman said he could not comment on individual businesses.
Meanwhile, Scottish Labour leader Richard Leonard accused the Scottish Government of a “dereliction of duty” over McGill’s collapse.
Mr Leonard said the Scottish Government’s “instincts of reaction” were “not right” on McGill and insisted securing the future of workers should have been a greater priority.
He said: “At a time when we already knew about the Michelin job losses and the establishment of a group to try to repurpose the site, surely it should have been a matter of great priority for the Scottish Government to instruct Scottish Enterprise to find a way of working with the employer and with the trade union to rescue these jobs.
“I would go so far as to say there has been a dereliction of duty. I think any government has a duty to work with employers, work with trade unions, to keep and to provide sustainable employment.”
It emerged this week a £30 million state loan granted last year to Ferguson Marine Engineering, a shipbuilder controlled by Jim McColl – a billionaire adviser to First Minister Nicola Sturgeon, has already cost the taxpayer £2 million.
A spokesman for business minister Jamie Hepburn described Mr Leonard’s comments as a “poorly thought out political attack” which showed “disregard for the future of staff”.