§ Mr. Heddleasked the Minister for Trade (1) whether he is satisfied with the working of section 319(1) of the Companies Act 1948; and if he will make a statement;
(2) on how many occasions in each of the last 10 years local authorities, under the terms of section 319(1) of the Companies Act 1948, have been responsible for winding up companies by claiming priority payments of rates; and if he will make a statement;
(3) whether he will bring forward proposals to amend section 319(2) of the Companies Act 1948 whereby in a winding-up there shall be paid all local rates from the company in priority to all other debts.
§ Dr. VaughanNo particular difficulties have been experienced in the working of the provisions of section 319(1) of the Companies Act 1948. However, the insolvency law review committee has recently made detailed recommendations for fundamental changes in the categories of debts—including unpaid local rates—entitled to priority in an insolvency administration. As indicated in my reply to the hon. Member on 6 December 1982, c. 575, the Government will make an announcement on the recommendations as soon as possible, but I am still waiting for replies from several major bodies which have been consulted.
I regret that the information as to the number of local authorities which have been responsible for winding up companies in each of the last 10 years is not readily available and could be ascertained only at disproportionate cost.