Para-Pace Limited, Cramlington (Hansard, 13 May 1986)

§ Mr. John Ryman (Blyth Valley)

I beg to ask leave to move the Adjournment of the House under Standing Order No. 10, for the purpose of discussing a specific and important matter which should have urgent consideration, namely, The peremptory closure, without notice, of the Para-Pace Limited factory in Cramlington by the management, the disappearance of valuable machinery purchased with regional grant funds for that factory, and the refusal to pay any wages and redundancy payments to the entire work force. The facts of the case are short and disgraceful. The company received substantial regional grant funds as recently as March 1985. Last week, without any notice to the work force, the factory was closed by the management, valuable machinery was removed, no wages were paid, and the management, in the form of the principal shareholder, did a moonlight flit, disappeared and cannot be found. I drew those matters to the attention of the Department of Trade and Industry, and yesterday the Minister responsible kindly saw me. Both he and his officials were extremely helpful, and I pay tribute to them for that.

The plain fact remains that the entire work force, which consists of women, has been left high and dry without wages, without redundancy payments and with no prospect of recovering them as the law stands. There has been no receivership and no liquidation, so they cannot obtain payments to which they would otherwise be entitled from the Department of Employment. It is a disgraceful state of affairs, and I ask you, Mr. Speaker, to consider urgently granting the facilities for this matter to be debated today, notwithstanding the important debates that have already been arranged.

This is typical of what happens in the north-east, when some people obtain regional grants but, when they are in financial difficulties, do a moonlight flit, throw out the work force without paying them, and remove machinery—bought with regional grant funds—which, in one way or another, leaves the region and disappears. That is an abuse of public money and a denial of the rights of the work force. In this case, the workers have been left helpless. I have advised them to apply for a liquidation so as to rank as preferential creditors, and the documents for that will be drawn up in my office this afternoon.

It is important that we discuss this matter urgently to find out what the Government can do about it. I ask you to intervene in this disgraceful state of affairs, Mr. Speaker. A serious fraud has been committed. I have given the name of the individual to the Minister, but I shall not mention it in public. However, I ask you to assist me in obtaining time today to debate this matter.