HC Deb 24 May 2004 vol 421 cc1439-40W
Mr. Sheerman

To ask the Secretary of State for Trade and Industry how many redundancies have been made by(a) companies and (b) administrators in each of the last 10 years. [173827]

Mr. Sutcliffe

The following table shows the available statistics. Estimates of the total number of employees made redundant each year are from the Office for National Statistics' Labour Force Survey which is based on a sample of over 61,000 households. The estimates are subject to sampling variability. The statistics of employees made redundant because their employer has become insolvent are from records of claims made to Redundancy Payments Offices. Employees of insolvent employers may claim redundancy payments and other contractual debts such as unpaid wages, notice pay and outstanding holiday pay. Though some qualifying employees may not make a claim, it is thought that almost all do.

Estimates of employees made redundant each year in Great Britain
Thousand
Total number of employees made redundant: Number of employees making a claim to a Redundancy
Estimates from the Labour Force Survey Payments Office because of the insolvency of their employer
1994 1— 1—
1995 680 1—
1996 623 1—
1997 610 1—
1998 697 75
1999 686 82
2000 639 91
2001 722 106
2002 700 99
2003 580 91
1Not available.

Mr. Sheerman

To ask the Secretary of State for Trade and Industry if she will take steps to ensure that the administration of a company following its liquidation is used as an effective tool to safeguard the interests of shareholders and stakeholders, including employees. [173853]

Mr. Sutcliffe

The Enterprise Act 2002 introduced changes that allow a liquidator to apply to court for an administration order. The court would have to be satisfied that the company would achieve the purpose of administration, the primary objective of which is to rescue the company as a going concern and failing that to achieve a better result for the creditors than on a winding up. If companies and their businesses can be rescued rather than wound up, then the outcome will be better for the company itself, its employees, its creditors, its shareholders and the economy as a whole.