Oral Answers to Questions — Northern Ireland – in the House of Commons at 12:00 am on 18 March 1993.
Mr Roy Beggs
, East Antrim
12:00,
18 March 1993
To ask the Secretary of State for Northern Ireland how many companies in Northern Ireland have gone into liquidation or bankruptcy while a demand was outstanding for payment of debt owed to a Department of Government, in each of the last three years.
Mr Robert Atkins
, South Ribble
During the year ending 31 March 1993 the number of High Court generated insolvencies, and companies starting creditors' voluntary winding up, will number approximately 655. This compares with 463 in 1991–92 and 457 in 1990–91. It is estimated that debts owed to Government Departments would be found in at least 90 per cent. of these insolvencies.
Mr Roy Beggs
, East Antrim
I thank the Minister for the information that he has delivered to the House. He highlights how serious the problem is. Will he confirm that it is estimated to cost £9,000 per annum in benefits and lost revenue to keep someone unemployed? Will he give me an assurance today that there will be better departmental consultation to ensure that no arm of government acts on its own to force a liquidation, bearing in mind that 50 per cent. of wind-ups in 1992 in Northern Ireland and 20 per cent. of bankruptcies in that year were as a result of Intervention on VAT? I hope that he can give that assurance.
Mr Robert Atkins
, South Ribble
The hon. Gentleman raises a technical point. I should like to give some consideration to it. Clearly, it is not always possible to delay an insolvency or the crash of a company for the time that the hon. Gentleman suggests that it takes to look into it. However, it is not the wish of the Government to put more people out of work than can be avoided in cases such as those of which the hon. Gentleman gives evidence today. If he would drop me a line or perhaps talk to me later about how we can progress, or if there is a particular instance or company about which he is worried, I should be more than happy to take it up.
Dr Joseph Hendron
, Belfast West
Will the Secretary of State and the Minister with responsibility for economic development pledge their support for the new survival plan that has been worked out between the Industrial Development Board and Stoy Hayward for the Clarence Clothing company in west Belfast? That company is in an area which is probably one of the blackest unemployment spots in these islands.
Mr Robert Atkins
, South Ribble
I am familiar with the case. The hon. Gentleman will find me particularly sympathetic, although as yet I have not made a final decision.
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