Rail jobs fear as Jarvis calls in administrator

The York-based group, which is chaired by former Conservative Minister Steven Norris, confirmed yesterday it was calling in administrators following a plunge in rail and plant work.

Jarvis said it had suffered "very considerable reductions" in business since the recession struck, and its future was dependent on support from lenders and Network Rail.

York Council leader Andrew Waller was yesterday involved in talks with both the regional development agency, Yorkshire Forward, and Network Rail

to help draw up a rescue package.

Coun Waller said: "York is a railway city and does depend on a large number of people who are employed in the industry. It is vital that we do all we can to ensure that the jobs are not lost not just from the city, but also from the main rail route to London."

Jarvis – once the UK's biggest construction company – stressed it was left with "no option" but to place the company in administration and has asked for shares to be suspended. The announcement follows warnings of heavy losses from the group last month after it was hit by spending delays at Network Rail.