Corporate Insolvency and Governance Bill — House of Commons, 2020-06-03
Topic: Macroeconomics
Ian Richard Kyle Paisley (Democratic Unionist Party, Right): I declare an interest as I am a director on the board of a couple of charities. Extraordinary and unprecedented times call for very special measures. Without doubt, the Government have produced ultra-special measures to deal with the times in which we find ourselves because of the economic crisis, which has been stimulated by the covid-19 crisis that is upon our nation. I welcome the measures that the Government have taken. As I said in an earlier intervention on the Secretary of State, if Northern Ireland had not received support from the Government and those special measures, quite frankly the place would have gone bust. Those special measures indicated the strength of this Union—they kept it together and demonstrated that, to use a worn-out phrase, we are all in this together, and that, as a nation, we are able to help each other through in difficult times. That is to be commended There are businesses across my constituency, and up and down Northern Ireland—indeed, across the entire United Kingdom—that have survived only as a result of the extraordinary and special measures that have been put in place. I believe that we should put on record our thanks and gratitude for the fleet-of-foot way that those measures were put in place for us all At times, there has also been a reluctance by other sectors to step up to the mark, and I think the banks could have acted quicker. Most of the complaints that I have had to deal with came from companies that were trading, but that ran into the brick wall of the current crisis. When they approached the banks, which the Government were supporting and encouraging people to support, suddenly the banks put up road blocks and hurdles for people to cross. Of course banks must ensure that they are guaranteed to get their money back and be able to lend fairly, but to put up extraordinary road blocks in front of some companies was incredibly naive at this time, and it left a sour taste in many people’s mouths. I have spoken to some traders in my constituency who say that one of the first things they will look into as soon as this crisis is over is changing their bank because of the way they have been treated. That is a bad mark; that should not have happened or been part of this process Other Members have said that what is now required is an economic stimulus, and two or three important steps could be taken almost immediately to help to stimulate the economy. First, we must think differently and think big. Our country deserves a Government who demonstrate that they will provide leadership. Indeed, it has been said that without a vision the people perish, and it is imperative that the Government provide a vision, think big, and demonstrate that they are going to invest in infrastructure and stimulate the economy. They need to invest in bridges, roads, and other things to drive the economy forward. They must encourage Heathrow to get back to developing its hub plan for all regions of the United Kingdom, and stimulate that in a way that provides a vote of confidence that the economy will turn the corner, and do very well once it has The Government could also consider other special measures. Members have mentioned some of them, such as coupons or bonds that could be backed by Government money to help stimulate certain sectors, such as the arts or sport. Sovereign wealth funds were also mentioned, and the Government could invest in those. I think that is a good idea. It could even be pushed on to local devolved institutions, which should be looking at regional wealth funds to help stimulate the economy directly The huge issue that I really want the Government to look at is new technology. This is an opportunity to stimulate the economy with new technology through, for example, measures to support the development of a hydrogen hub and hydrogen power. We are a potential world leader in that new technology, which will generate employment in the manufacturing sector, use the steel made in this country to produce goods and ensure that we are able to provide something that is zero-carbon and will help the environment. We should be looking at such measures I am delighted that the Bill’s provisions are extended to Northern Ireland. I raised with the Secretary of State at the beginning of the debate the fact that these are temporary measures—indeed, they will expire in about 27 days if approved today. I think that they will need to be extended well beyond that. I agree with Members who have said that the earliest these measures should elapse is September, or even the end of the year, so that people have time to use the provisions that the Government have given them There are a number of core measures in this legislation, which I support, to provide companies with the best chance of surviving the financial difficulties of the covid-19 crisis. Providing insolvency breathing space is essential. The protection from threat of personal liability and aggressive creditor action during this crisis has been mentioned by many Members, and I agree with those provisions. Providing a temporary relaxation of rules surrounding meetings and filings during this time is also very important. The Bill introduces a free-standing moratorium for UK companies, overseen by an insolvency practitioner, to allow time for the rescue conditions to apply, with the moratorium ending if it is unlikely that the company will ultimately be rescued Northern Ireland is affected by this legislation in the following way. Clause 4, which inserts new part 1A into the Insolvency (Northern Ireland) Order 1989, and schedules 5 and 6 mean that the moratorium provisions are practically the same in Northern Ireland and GB. Clause 5 and schedule 7 are similar to schedule 3 for GB. Clause 6 and schedule 8 outline the timescale for these provisions and powers for the Department for the Economy. I encourage the Minister to keep in close contact with the Minister in Northern Ireland and the Executive, to ensure that the good flow of conversation and in-step approach remain, so that we can utilise the best provisions being made here at Westminster Clause 11 temporarily suspends liability for wrongful trading under the Insolvency (Northern Ireland) Order 1989. Clauses 14 to 17, on termination clauses, amend article 197 of the 1989 Order to cover new categories of electricity provider, suppliers of IT goods and services, which is very relevant today, and cases where utility supplies are made by a landlord, and grant a temporary exclusion for small suppliers similar to GB. Those measures are very important for small businesses in particular. Clauses 26 to 33 outline the powers available to amend corporate insolvency or governance legislation in Northern Ireland. The inclusion of Northern Ireland in this legislation is most welcome. The measures bringing corporate insolvency more into line with that of Great Britain, at least during this time of crisis, are a vote of confidence, in that we are all going to have to emerge from this together—we will have to pool our strengths, share our responsibilities and make sure that the entire kingdom enjoys the opportunity of emerging from this crisis united, stronger and better This important legislation supports our companies through the financial difficulties of covid-19. What other measures has the Minister considered to continue to help companies after the initial threat of covid-19 has passed? It is important that we look beyond this. This has to be temporary. We do not want to see this as the main way forward. I hope the Minister will provide the sort of vision we talked about earlier and to which other Members have referred in their speeches. The importance of collaboration across the United Kingdom to help and strengthen our economy is the cornerstone of this proposed legislation. I hope it gets a fair wind. It will certainly have the support of Members of my party in the House today.