A press release was published by the Labour party yesterday criticising David Cameron’s proposals on Chapter 11
“John Hutton MP, Labour’s Business Secretary , responding to David Cameron’s proposals at the CBI on adopting the American Chapter 11 system, said:
“David Cameron’s proposals would actually create a greater risk of companies going under at this difficult economic time because banks could tighten up their business lending ahead of the changes coming into effect.
“We have already made changes to UK law into the Enterprise Act 2003 to help companies through difficult times.
“Importing Chapter 11 into the UK is a poorly thought through idea from the Tories. Chapter 11 in the US is a more expensive, court based system of administration.””
I’d be able to take this more seriously if Mr Hutton’s statement was accurate. The Enterprise Act may have come into force in September 2003, but it was passed in 2002 – as a quick look here will confirm.