Oral Answers to Questions

Michael Fabricant Excerpts

Tuesday 30th January 2018 Commons Chamber

[Greg Clark]

On the first day of the insolvency, I had in the representatives of all the supply chain organisations. The first request they made was that we get the banks in to make sure that they treat leniently their customers who were caught up in the insolvency. The banks agreed to do that, and they put funds aside to support and assist those customers. Each bank has made commitments that it will apply leniency to any terms and conditions faced by those businesses.

[Michael Fabricant (Lichfield) (Con)]

My right hon. Friend has almost answered my question, because I was going to say that cash flow is as important as profitability. The problem with lack of cash flow is when the banks become too heavy and foreclose on smaller firms.

[Greg Clark]

That is exactly the point that the businesses made. That is why I asked the banks to attend in person to meet those businesses, and it is why the banks gave those commitments and guarantees. It is important for Members with constituents who may be affected that the banks have made that commitment and have made a promise that they will deal individually with anyone who is so affected. The measures are on each bank’s website, but any colleague should come back to me if they experience a problem.