Lilley Group Plc: Protection Of Sub-Contractors

EDM number 1141 in 1992-93, proposed by Michael Connarty on 12/01/1993.

That this House is deeply concerned at the cynical decision of the Clydesdale Bank, owned by the Bank of Australia, to call in the receivers on the Lilley Group plc and the subsequent actions of the receivers Price Waterhouse in ending the trading of financially healthy subsidiaries of the Lilley Group; notes that the receivers are now stating to companies who are owed money for works carried out for MDW, a Glasgow-based construction subsidiary, that debts outstanding of almost ú16 million have been transferred to Lilley Group plc, who will be unlikely to make these payments because the majority of assets will be used to pay the banks; further notes that the subsidiaries, if sold, will not be liable to pay the debts owed to contractors for work done, which in turn will lead to substantial job losses and financial hardship for sub-contracting firms such as Fir-side Joinery of Falkirk who are owed ú200,000 by MDW for work already completed; and calls on the Department of Trade and Industry to introduce regulations to safeguard the rights of viable companies in such circumstance.

This motion has been signed by a total of 40 MPs.