Simple Step 5

LA now puts forward his 5th step to rapidly help the economy. Note none of these plans cost the tax payer a penny.

Job protection is key. If people feel their jobs are safe they have confidence and spend. The economy moves.

The rules of company administration and insolvency, have now worked well for many years. However, in the new world of tight finance they do not.

Most are not aware that the administrator is personally liable for health and safety the minute they are appointed, in the litigious society of today that is too risky. This and the pressures from creditors mean that most companies in administration look for a going concern buy out in only a very few days after that they close with all the asociated job loses. This was fine when you could get £1m out of a bank with a phone call (not an exaggeration). Now however perfectly viable proposition are being wound up and asset stripped because the finance cannot be arranged in a few hours by prospective buyer.

A system of "chapter 11" like protection needs to be brought in for companies in administration, and a sensible view on health and safety legislated for.

This would see many companies and therefore many jobs saved. Again this is free to the taxpayer.

This is not just hot air. LA ran out of time to rescue a company with 200 employees last month. Raising over a million in cash in 48hrs was impossible. Had it been 48 days or even 2 weeks, well, 200 jobs would have been saved.

LA