Christchurch traffic control company owes creditors over $1.3m

Monday, 16 September 2024

A Christchurch-based company responsible for maintaining and repairing traffic lights across the South Island owes more than $1.3 million to creditors, according to a liquidators' report.

Traffic Control Systems Ltd (TCS), directed by Rodger Powley and incorporated in August 2001, filed for liquidation on September 8, with liquidator Brenton Hunt appointed and the first liquidation report released on Sunday.

The report showed an estimated $1.2m is owed to 98 unsecured creditors, including Business Canterbury, Isaac Construction Ltd and Waka Kotahi NZ Transport Agency. Another $70,000 was owed to staff for unpaid wages and holiday pay, and $100,000 to Inland Revenue PAYE and GST.

The first liquidators’ report for TCS Group Ltd, the company’s head office, was filed to the companies office on the same day. That company owed creditors $50,000, which included $20,000 in unpaid staff wages and holiday pay and $20,000 owed to Inland Revenue PAYE and GST.

The liquidators’ reports attributed both companies’ insolvencies to “struggles during Covid lockdowns”.

“According to the director, in the last six months revenue levels have steadily dropped, due to a lack of contracts being resealed, to a level that business was no longer sustainable,” the reports for both Traffic Control Systems and TCS Group Ltd stated.

TCS “provided maintenance, installation and traffic management services across the South Island”, according to the report.

The company’s website is still active. No updates have been posted on its social media accounts.

The last update from TCS on LinkedIn was three months ago, and stated: “From the bustling streets of Christchurch to the coastal and inland routes between Tasman and Southland, our traffic management team has been there.”

A former TCS employee told The Press that on the last weekday before the company filed for voluntary liquidation, a senior manager assured staff that 'the business was fine”.

“In the past five or six months, our subcontractors were hitting us up and asking us personally, and also stuff started going missing from the yard, but in his words ‘we were just consolidating, we were just tightening the reins up. That's all it was,’' said the employee, who had over 20 years of experience in the sector.

“On Friday, he told us things were all good. Don't worry about it. We're sweet. And then two days later, he put it into liquidation.”

The former employee said they had work scheduled for that Sunday [September 8], “so to find out [the news of liquidation] at 1:30 pm it was pretty bad.”

“[The company had] 25 to 27 staff. Everybody is stressing out [now]. I don't know if we're ever gonna get our holiday pay. A lot of us are relying on that because we're getting so close to Christmas,” the employee said.

“[Before the liquidation,] we had massive jobs. We were generating about $1 million a month and then all of a sudden we got no money,” they added.

Earlier last week, another TCS employee told The Press staff were left in the dark before the liquidation.

“I hope we get paid for last week, [and] that would make a lot of people happy,” the employee, who asked to remain anonymous, said.

The Christchurch City Council expressed regret over TCS’s liquidation. It had only two existing contracts with TCS – one for maintenance and one for capital works/ upgrades to intersections, council head of transport and waste Lynette Ellis said last week.

“As a part of a joint approach across greater Christchurch, Selwyn District Council engaged with Traffic Control Systems through Christchurch City Council’s contract with them,” Tim Mason, executive director of infrastructure and property of Selwyn District Council, said.

“We are unsure of the impacts at this stage and we are waiting to understand more about this situation and are awaiting direction and advice from Christchurch City Council.”

Neil McCann, manager of infrastructure and open spaces at Ashburton District Council, said while TCS had been used for traffic signal repairs at three Ashburton intersections as needed, there was “no ongoing work with the company”.

From January to April, TCS installed traffic lights at the intersection of Tram Rd and State Highway 1 in Canterbury as part of a $1.4m project to improve safety.

Several serious crashes, including a fatality, over the last decade prompted NZ Transport Agency Waka Kotahi to make safety improvements to the Tram Rd off-ramp, including lights.

TCS was the lead contractor, with Isaac Construction doing the pavement surfacing and some kerb and channel work.