Closure firm blames insurance hike

The company says 30 people will lose their jobs

A Cumbrian engineering firm is to close - despite having a £350,000 order book.

Barrow-based Sterling Fabrications says it is being forced to shut its doors because of a massive hike in insurance costs.

The company, which has been in operation since 1992 and works in the nuclear, offshore oil and gas sectors, says 30 jobs will be lost as a result.

Company director Alan Hambling blamed the growing compensation culture for the downfall of his successful business.

He said he could not afford to pay a liability insurance bill of £45,000, which has to be paid in one lump sum.

We are very angry, we have a committed workforce who will be out of their jobs Alan Hambling, director

In 1998 Mr Hambling said the same insurance cost him just £3,000.

He said: "It is a right royal mess. We do not have £45,000 to pay in one lump sum.

"Our first reaction when we were told about the new rates we were shocked.

"We, like other engineering firms, are apparently considered high risk by insurance firms.

"We did have a large claim as a result of a fire, but that is not settled yet.

"We are very angry. We have a committed workforce who will be out of their jobs."

Help for workers

Mr Hambling said the closure would have a devastating effect on the local economy

He said he had approached regeneration agencies, but that no help had been forthcoming.

Terry Waiting, leader of Barrow Borough Council and a board member of Furness Enterprise, said: "Furness Enterprise operates with public money and we cannot use that to pay a company's insurance bill.

"We will have to look in more details at the situation the company is in.

"Of course, any help that we can give the workers will be offered."