§ 8.30 p.m.
§ The MINISTER of STATE, NORTHERN IRELAND OFFICE (Lord Melchett) rose to move, That the draft Preferential Payments in Insolvency (Northern Ireland) Order 1977, laid before the House on 5th July, be approved. The noble Lord said: My Lords, I beg to move that the Preferential Payments in Insolvency (Northern Ireland) Order be approved. The Insolvency Act 1976, which contained many worthwhile and desirable changes to the law on companies and bankruptcy in Great Britain, was not extended to Northern Ireland in view of the considerable differences between the law on those subjects in Great Britain and Northern Ireland. These changes will be incorporated in comprehensive legislative provisions on the company and bankruptcy law of Northern Ireland, which are to be made public within the next year. However, the Government believe that the application to Northern Ireland of the additional protection provided in Great Britain for workers by the Insovency Act 1976 should not be delayed until the passing of the proposed legislation and, for that reason, this short order has been specially prepared.
§ The order increases the present limit of £200 on preferential payments for wages to £800 and thereby provides more realistic protection to employees caught up in the insolvency of their employer. The new limit of £800 is the amount now in force in Great Britain under the 1976 Act. I beg to move.
§ Moved, That the draft preferential Payments in Insolvency (Northern Ireland) Order 1977, laid before the House on 5th July, be approved.—(Lord Melchett.)
§ On Question, Motion agreed to.