§ Mr. John H. Osbornasked the Secretary of State for Trade if he will take steps to publish fuller information for 1977 about the closure of businesses or companies, distinguishing between compulsory and voluntary liquidations, forced and voluntary takeovers as a rescue operation and voluntary winding-up where 5W outstanding debts are left unpaid, and if he will summarise and tabulate the number and value involved under these headings in each of the last three years, respectively, and in total.
§ Mr. Clinton DavisThe information requested in the first part of the hon. Member's Question is published, with figures for the previous nine years, in my Department's Annual Report on Companies. In addition, quarterly statistics of bankruptcies and company liquidations, both compulsory and voluntary, are published inTrade and Industry.
A creditors' voluntary winding-up means that a company is insolvent and unable to repay its debts in full. In a members' voluntary winding-up it is rare for a company subsequently to be found insolvent.
As to takeovers, quarterly statistics of acquisitions and mergers of industrial and commercial companies are published in Trade and Industry and in Business Monitor M7. It would be impracticable to supplement these to show rescue operations separately because there are no criteria by which such cases can be conveniently defined.
§ Mr. John H. Osbornasked the Secretary of State for Trade whether he will initiate talks with the Confederation of British Industry, Associated British Chambers of Commerce, the Institute of Chartered Accountants and other professional accountancy organisations, the Law Society and the appropriate trade associations about the causes of the rising number of business failures over recent years, and about the impact these failures and subsequent bad debts are having on other small, medium, and large businesses, and the consequential impact on employment opportunities.
§ Mr. Clinton DavisThere have already been ministerial discussions with representatives of industry and commerce about business failures. The Government's medium-term programme for economic recovery is designed to restore the economy to balance with a high level of employment and an industry which is vigorous, expanding and profitable.