§ Lady Hermon:To ask the Secretary of State for Trade and Industry what action she has taken to assist Carpets International (UK) Ltd. since it went into receivership; and if she will make a statement. [130399]
§ Mr. Sutcliffe:Under the insolvency previsions of the Employment Rights Act 1996, the Redundancy Payments Directorate may pay certain guaranteed debts (within limits) if the employer is legally insolvent within the meaning of that Act. Any outstanding contractual debts owed to employees' remain listed in the insolvency as unsecured debts. The Edinburgh Redundancy Payments office has received and paid redundancy and other insolvency claims for all the employees (over 400) who worked at the Bradford Hartlepool and Hull establishments. The Gwent establishment is still trading with a view to selling that part of the business.
The Employment Services (ES) Rapid Response Unit—a flexible service, tailored to the needs of the particular area, sector and company—was notified and is liaising with local partners such as the Regional Development Agency, the Local Learning and Skills Council, the Local Authority, Chamber of Commerce, to take any appropriate measures to assist or retrain the employees in question. For example, the ES offers access to a range of support schemes, from the New Deal and the Jobseekers Allowance through to more focused schemes designed o help those caught up in restructuring. It provides information on job searching, compiling CVs, further education and training for individuals who need to develop new skills, and benefits.