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Company Insolvency

Volume 407: debated on Thursday 19 June 2003

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To ask the Secretary of State for Trade and Industry what plans she has to amend legislation protecting the pay and conditions of employees in cases of companies being taken into administration. [120233]

The Government will be reviewing the existing employment protection afforded to employees of insolvent employers when implementing the changes arising from the European Council Directive 2002/74/ EC amending the European Council Directive 80/987/ EEC on the approximation of the laws of the member states relating to the protection of employees in the event of the insolvency of their employer, which are to be implemented by October 2005.

To ask the Secretary of State for Trade and Industry what plans she has to limit the costs charged by liquidators in insolvency cases. [120035]

My right hon. Friend the Secretary of State for Trade and Industry has no plans to intervene in the administration of insolvent estates by seeking to limit the fees charged by insolvency practitioners. This is primarily a matter for the creditors of the insolvent estate. The Insolvency Rules 1986 make provision for the court to review the amount where, in appropriate circumstances, an application is made by either the creditors or the practitioner.All insolvency practitioners are required to follow the guidance on remuneration contained in Statement of Insolvency Practice number 9, which was amended in December 2002.