Oral Answers to Questions

Debate between Steve Barclay and Vince Cable

Thursday 13th January 2011 Commons Chamber

[Vince Cable]

I am amazed that Opposition Members keep dragging up issues relating to the contracts of senior executives in the semi-nationalised banking sector that they negotiated without proper support for the companies to which they are due to lend.

[Stephen Barclay (North East Cambridgeshire) (Con)]

T6. Phoenix trading, whereby directors in financial difficulty set up a new business and then buy back their assets at a knock-down rate—that is, for less than the bad debts that they walk away from—is a serious issue for small businesses that supply those goods in good faith, both in my constituency, and, I am sure, those of many other Members. In reply to my parliamentary question, the Government said that no legislation was planned, but what comfort can they provide to small businesses? Will the Minister meet me to discuss the various tools that his officials could use to provide such comfort?