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Ifs time we acted to clean up our industry

23rd September 2010
Page 20
Page 20, 23rd September 2010 — Ifs time we acted to clean up our industry
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Which of the following most accurately describes the problem?

DOES INSOLVENCY practitioner Paul Brindley really think that we are all so naïve?

In CM's Letter of the Week (16 September). he trots out the tired old defence of the legalised fraud we know as pre-pack administration, that jobs are saved that would otherwise be lost.

Please, Mr Brindley, put the violin away. If there is a market for the product, then the jobs will be created elsewhere, hopefully with a company whose directors have a proper grasp on their business and who will not trade into huge insolvency while blinkered to the reality of what is happening around them.

And where exactly is "the wealth they created"? It's certainly not in the bank accounts of the suppliers who have been led down the garden path by their customer's incompetent management.

I agree with Mr Brindley on one thing—that the authorities lack the will and the teeth to act. Never mind "repeated phoenix operations", when a business fails for the first time, we need to have the reasons examined closely. If the directors can't explain their actions from the very day their company slipped into insolvency, usually many months before the doors close, then there is no question in my mind that they should be banned, as their incompetence is plain for all to see.

The Road Haulage Association is currently scrutinising new applications from prepacks, and the Traffic Commissioners are also raising concerns over the viability of such operations, not to mention the repute of the bosses who have clearly been operating outside the terms of their previous 0-licence.

If it's too much to expect that government will do much about it, let's hope pressure from within will at least help to clean up our own industry.

Colin McKay Managing Director

Fast Forward International

Tags

Organisations: Road Haulage Association

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