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MG Rover

: The complexity of the law is an important point in that respect. Someone is wrongfully trading if they think that things are going to go wrong. If they think that things will come good, and if they have good evidence for that, they are not wrongfully trading. The point that the hon. Gentleman raised is exactly the one that the inquiry needs to consider. Did SAIC actually pull out of the deal? When I was talking to Tony Woodley after the company went into administration it was clear that it was still talking to SAIC, which was still interested in trying to do a deal and had not lost interest in the commercial side of the business. My understanding is that concerns were raised by the advisers to the DTI about the stability of the residual business, and that that had caused some concerns with SAIC. However, as hon. Members are aware, because we have discussed it today, there were not any problems with the stability of the residual business. We are talking about an inquiry. I agree with the hon. Member for Birmingham, Northfield that there should not be any no-go areas. We must consider what actually happened: what switched the business from being solvent to being insolvent—from non-wrongful trading to wrongful trading. That is the critical issue to be determined. I may be wrong, but my understanding is that a precondition had been established by the DTI that the funds needed to go into an escrow account from SAIC. There were challenges, in that China has a different governmental system, and it is necessary to get authority from the Government to do certain things. We all know that Governments take a little time to handle such things, and that in itself can cause substantial problems. If the DTI says, ““You must do this now,”” and they say, ““We can only do it in three weeks' time,”” there is a problem.