Corporate Insolvency and Governance Act 2020

Baroness Kramer Excerpts

Wednesday 29th July 2020 Lords Chamber

[Lord Callanan]

As the noble Lord observed, the measures have been in place for only a few weeks. One company has taken advantage of them, but it is an option for companies and the monitors if they think there is a possibility of the company being rescued. I can reassure noble Lords that the Government are fully committed to supporting the retail sector. In addition to the measures that have already been announced, my ministerial colleague, Minister Scully, has had regular calls with key representatives from across the sector and is working hard to address the issues it faces.

[Baroness Kramer (LD) [V]]

My Lords, the Act as passed does not include amendments that would have prevented banks manoeuvring into a position of primacy over small suppliers and creditors, while the Finance Act 2020 deliberately puts HMRC ahead of small suppliers and creditors. Will the Government commit to monitoring on an ongoing basis, not just in three years, any impact on small suppliers and creditors, and will they act if the evidence shows that the harm is actual and serious?

[Lord Callanan]

I can certainly give the noble Baroness that reassurance. These are complicated provisions and we accept that they have been in place for only a short period. We will of course continue to keep a close eye on how they are working out in practice.