§ Mr. ReedTo ask the Secretary of State for Trade and Industry what representations he has received about the priority given to creditors of companies in administration under the Insolvency Act 1986; and if he will make a statement. [125770]
657W
§ Dr. HowellsUnder the Insolvency Act 1986 certain debts (principally for employee claims and taxes collected but not paid over) have preferential status up to defined limits.
Representations are received about this from time to time and many representations received since the failure of UNO plc and World of Leather plc urged that preferential status should be reduced or abolished or that the categories of eligible claims should be extended. Last year the Department published a consultation document entitled, "A Review of Company Rescue and Business Reconstruction Mechanism", which invited views on, among others, the question of whether Crown preference in insolvency should be abolished. A report of the review group will be published in due course.
§ Mr. ReedTo ask the Secretary of State for Trade and Industry what representations he has received from creditors of World of Leather plc and UNO; and if he will make a statement. [125769]
§ Dr. HowellsMany representations have been received from or on behalf of customers of both UNO plc and World of Leather concerning payments made for furniture ordered but not supplied. The issues raised are set out in the record of the debate held in the House on 24 May 2000,Official Report, columns 247–55WH. My right hon. Friend the Minister for Trade subsequently also wrote to hon. Members who had participated in the debate and a copy of this letter has been placed in the Library of the House.