Small Businesses: Retention

Lord Naseby Excerpts

Wednesday 21st February 2018 Lords Chamber

[Lord Henley]

My Lords, as I said, we are considering these matters. The noble Lord quite rightly points out the task force that my right honourable friend has set up; I add that the Small Business Commissioner, Paul Uppal, will sit on that task force. We will consider all the options as a result of that but we will not rush into legislation; we are going to consider what is appropriate. Perhaps we can give some support to Peter Aldous’s Bill but these matters need to be considered and we will then deal with the problem.

[Lord Naseby (Con)]

My Lords, if the retention moneys at Carillion have gone walkabout, surely that is the legal responsibility of the board of directors of that company and prosecutions should follow accordingly. But in relation to retention moneys in general, in addition to what my colleague the noble Lord, Lord Aberdare, suggested, could we not consider the simple principle that if you buy a house and pay a deposit, that money rests with the lawyers for the transaction until such time as completion is made?

[Lord Henley]

My Lords, I am not going to comment on the first part of my noble friend’s question as that is obviously a matter for the official receiver and the legal authorities more generally. On his more general points about retention moneys, we believe they have negative impacts. We want to consider the right way forward, and will then take action.