§ Mr. Frank Allaunasked the Secretary of State for Employment why the temporary short-time working compensation scheme is not permitted to apply where the company concerned is not insolvent or about to become insolvent but is going into voluntary liquidation in a solvent position; and if, in the light of this factor, he will reconsider his refusal to assist Richard England (Salford) Ltd., which has actually made payments to its employees.
§ Mr. Peter MorrisonIt is an essential condition of the temporary short time working compensation scheme that support should not be given to companies that are either insolvent or about to become so. My Department does not suggest that any company is insolvent or about to become so without examining the facts carefully and giving the applicant every opportunity to state its case. If an applicant fails to satisfy my Department that it is neither insolvent nor about to become so, then its application cannot be approved.
A decision to go into voluntary liquidation would not be regarded as proof than an applicant was not about to become insolvent. Moreover, where voluntary liquidation results in the loss of the jobs covered by an application, no support would be given. It is not the intention of the scheme to support jobs which cannot be saved.
The details of all applications for support are confidential and I cannot discuss the case referred to by the hon. Member.