Business, Innovation and Skills

Vince Cable Excerpts

Friday 16th January 2015 Ministerial Corrections

[Mr Chuka Umunna (Streatham) (Lab)]

Following on from the question from my hon. Friend the Member for Coventry South (Mr Cunningham), does the Secretary of State agree that to hear that your job has been put at risk of redundancy not from your employer, but while watching the television news with your family on Christmas day—as was the case with the City Link workers—is an utterly appalling way to be treated?

[Vince Cable]

I certainly agree that for the 2,300 workers involved it was a very sad and dispiriting event. The company can answer for its behaviour, but the fact is that it was no longer viable and was put into administration.

[Official Report, 8 January 2015, Vol. 590, c. 384.]

Letter of correction from Vince Cable:

An error has been identified in my answer to the hon. Member for Streatham (Mr Umunna) during Questions to the Secretary of State for Business, Innovation and Skills.



The correct response should have been:

[Vince Cable]

I certainly agree that for the 2,586 workers involved it was a very sad and dispiriting event. The company can answer for its behaviour, but the fact is that it was no longer viable and was put into administration.

Topical Questions

[Mr Umunna]

With so many unanswered questions for employees and contractors of City Link, the entire affair stinks. Why, for example, if the firm was technically insolvent on 22 December, as has been reported, was it planning to trade until 26 December? Is it true that contractors were told that rumours of it going into administration were false? Why was a new subsidiary set up on 9 December?

The administrators will do their work and no doubt make a D1 filing with the Department. Given the numbers involved and the public interest in the administration, will the Secretary of State commit to conducting a full and proper inquiry into the matter, as he did with Comet? Those who have lost their jobs and contractors who are owed money deserve nothing less.

[Vince Cable]

The difference with the Comet case is the allegation of serious misconduct by directors, and that may or may not be the case with City Link. In six weeks, the administrator will make a report to our Insolvency Service and, depending on what that says, we may want to initiate an investigation, but let us wait and see the findings of that.

[Official Report, 8 January 2015, Vol. 590, c. 385.]

Letter of correction from Vince Cable:

An error has been identified in my answer to the hon. Member for Streatham (Mr Umunna) during Questions to the Secretary of State for Business, Innovation and Skills.



The correct response should have been:

[Vince Cable]

The difference with the Comet case is the allegation of serious misconduct by directors, and that may or may not be the case with City Link. Within six months, the administrator will make a report to our Insolvency Service and, depending on what that says, we may want to initiate an investigation, but let us wait and see the findings of that.