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Company Insolvencies (Employees)

Volume 932: debated on Thursday 26 May 1977

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asked the Secretary of State for Employment on what date his Department made available moneys due to Mr. J. Chipman of Kingstanding, Birming ham, under the insolvency provisions of the Employment Protection Act; and with what instructions.

Funds to pay the debts owed to Mr. J. Chipman of Kingstanding, Birmingham, were paid to the liquidator on 23rd February 1977 under the insolvency provisions of the Employment Protection Act 1975 with instructions to disburse the money to the employee. My Department is investigating the delay in making payment to Mr. Chipman and I will write to my hon. Friend as soon as possible.

asked the Secretary of State for Employment what is the average length of time taken from a company insolvency to the payments due to former employees under the insolvency provisions of the Employment Protection Act; and how this compares with time taken to make payment to Mr. J. Chipman of Kingstanding, Birmingham, in respect of his former employment at Haynes Engineering Company Ltd.

Information on this point is not readily available and could not be obtained without disproportionate expense. In any event the time which elapses between the date of insolvency and the date of payment under the insolvency provisions can vary considerably according to the circumstances of each case.