Proceeding contribution from Julia Goldsworthy (Liberal Democrat) in the House of Commons on Tuesday, 13 October 2009. It occurred during Debate on bill on Local Democracy, Economic Development and Construction Bill [Lords].
Local Democracy, Economic Development and Construction Bill [Lords]
I was aware of that, and it leads me to another concern. Although there has been consultation on all issues, it is much easier for the very large organisations to engage in that consultation and very difficult for the smaller organisations, which make up the majority of the industry. We are also concerned that a lot of the consultation took place before the catastrophe that has hit the construction industry. The world has moved on dramatically and the Government's approach has not reflected those changes. On the conditional payments provisions and the so-called "pay when paid" clauses, I listened carefully to the Minister, and I have heard her say on more than one occasion that she is taking that position because insolvency provision has to apply equally across all business, but she has not explained how banning "pay when paid" clauses on the insolvency of a third party is in conflict with insolvency laws. My understanding is that the original purpose of the legislation was to ban all "paid when paid" clauses, without exemptions. I understand that that has been adopted in New Zealand, Australia and Singapore. We have not had a decent explanation of exactly why the provision crept in. The conclusion that Liberal Democrats draw is that it had to do with some major lobbying, rather than inconsistency in law. I bring the Minister back to the issue of perspective. We are worried that insolvencies further up the line could generate more insolvencies down the line. There is a danger of a domino effect in the current economic situation.
Secondary information
- Type
- Proceeding contribution
- Reference
- 497 c177-8
- Session
- 2008-09
- Chamber / Committee
- House of Commons chamber
- Subjects
- Contracts Appeals Construction Civic dignitaries Insolvency Insurance Economic planning Local government Local government finance Payments Planning Public consultation Parish and town councils Public lavatories Regional planning and development Regional development agencies Petitions
- Legislation
- Local Democracy, Economic Development and Construction Bill (HL) 2008-09
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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