Transfield says all contractors now paid…

Transfield Services says it has paid the money it owed to New Zealand subcontractors working on the ultrafast broadband initiative.

David Jamieson, spokesman for the Australian engineering firm, said all outstanding payments were direct-credited to its contractors’ accounts at midnight on Friday.

The company acknowledged last week that it had fallen behind paying dozens of contractors.

According to Labour Party communications spokeswoman Clare Curran, the late payments totalled several million dollars.

Jamieson would not explain the delay, saying Transfield had “no further comment on the matter”.

The missed payments prompted concerned statements last week from Communications Minister Amy Adams and Chorus chief executive Mark Ratcliffe.

Adams said Transfield needed to explain why the situation had developed, while Ratcliffe said Transfield contractors working on the UFB scheme “deserved better”. Both sought an assurance from Transfield there would be no repeat.

Transfield shares are up 3 per cent at A$1.22 in early trading on the Australian stock exchange this morning, having recovered about half of Friday’s decline.

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