Banks have county firms on their knees
Thursday 12th March 2009, 4:45PM GMT.
Up to 15 Shrewsbury businesses have approached their MP in a desperate bid to avoid folding because of problems with their banks, it has been claimed.
Shrewsbury MP Daniel Kawczynski said he had faced the “extraordinary” situation of being asked by companies to plead with bank bosses to allow more time for payments to be made and stave off unreasonable demands.
He said that Wrekin was not the only company to have faced severe pressure from the banks and has called for the government to do more to help firms in trouble.
“I am currently involved in negotiations with banks with regard to 15 Shrewsbury firms who are having difficulties with their banks,” he added.
“These companies have asked me personally to get involved and I am writing to banks and arranging for Shrewsbury businesses to meet with their bank managers.
“It is quite an extraordinary situation when local firms are asking for the support of their MP to stop them going to the wall.”
The Tory MP said that since the recession took hold, he has been approached by an increasing number of businesses who are suffering because of a decline in demand whilst struggling to access credit.
A Meet the Buyer event is being held for businesses in the construction industry, which will take place on March 27 at the Shirehall.
The Chamber of Commerce will offer a presentation and short interview slots explaining how contracting and procurement services are arranged by Shropshire Council.
Mr Kawczynski added: “The construction industry has suffered more than most in this recession, with the recent collapse of Wrekin Construction providing a stark realisation of the industry’s poor state.
“I feel it is tremendously important that work done on behalf of the rent payers of Shropshire should be carried out by firms based in Shropshire.
“It should certainly not be contracted out all over the country, as this will be of further detriment to the struggling firms in Shropshire.
“I am not happy that the Government is providing anything like the scale of assistance that this recession warrants.”
Mr Kawczynski urged as many Shrewsbury businesses as possible to contact the Shropshire Chamber of Commerce, and book a consultation at the event.
He said: “This event will be of real worth and I hope will contribute to a much welcomed change in fortune for the Shropshire construction industry.”
The event will begin at 4.30pm. Consultation bookings can be made via Teresa Rowe on (01952) 208218.
By Russell Roberts
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we must do something to avoid another wrekin construction, yes the bad firms should go bust in recessions, its essential natural wastage, but profitable firms with short term cash flow issues, must be given low cost loans, directly by the government if needs be
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I can’t decide if throwing stories at us concerning a few top bankers extortionate {verging if not on criminal then definately immoral} pensions is a red herring and designed to throw us off the governments trail but I thought that we {the tax-payers} had a majority holding in these banks. Which..er..means it’s our money!!!
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Its not just happening in Shropshire, its happening all over the country. The government are saying that they are demanding that banks help businesses but the banks are not helping. We, the taxpayer, have bailed out these banks and now the banks are not playing ball.
Many more companies will go to the wall thanks to the banks.
I just hope that after the recession, companies remember the banks that refused to help/called in debts and do their business elsewhere.
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we must fight back
why not only put money into post office or NSI government banks, the private sector ones would soon get the message and do what they’re told
CONSUMER POWER TO THE PEOPLE!
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madness
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Pete from Drayton: apart from some savings, it’s not *us* putting our money into those banks, it’s the *government* putting our money into those banks.
If you put your money in NSI (= government) or Post office, (= Bank of Ireland), then the banks will complain that they have even less capital and the government will hose them down with MORE of OUR money. They’re going to get their grubby hands on it one way or another, either through savers or through the government’s unstoppable generosity (= cluelessness).
(Oh and yes, RBS *is* a government (owned) bank, but like the government, the management don’t feel accountable to the people – they’ve learnt quickly from New Labour and its ministers about how to treat the common people.)
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as the banks are refusing to play ball with companies why dont these fims sue them, as they must be breaking their terms and conditions of their respective bailouts and various other agreements.
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I might have believed this story if it hadn’t come out of Kawczynski’s mouth.
I don’t doubt there are companies out there having problems with the banks, unfortunately as soon as Kawczynski gets involved the story loses any kind of credibility in my eyes.
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we must all do more
come on people shop til you drop!
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your lucky to have a Conservative MP like Daniel who knows his stuff
we will sort out this banking mess, get the banks lending again, back in the private sector and we will cut your taxes
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these banks are owned by the government on our behalf. it is time this wretched government ceased its patty fingers action with the banks and totally nationalised them and put in directors and management who will lend to business and their owners, er us.
if they would provide sensible mortgages and hp, we might go out and buy cars made in this country, otherwise vauxhall, honda, toyota nissan etc will close their factories in gb throwing hundreds of thousands of skilled workers on the dole. this is not the time for blaming governments, we are all in this together, when you go out to buy something from say a kettle or a washing machine or a car, buy a british made one, this way we help ourselves. i am backing britain was the slogan, it still is hopefully
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I closed one business account after paying in a £200 cheque. The charges they placed for paying in the cheque meant that the cheque was only worth just over £160 and that was on an account that was well run, not overdrawn, no overdraft facility. The banks charges are crippling businesses.
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we need state owned banks again i believe to act as faciltators of economic growth not profit making entities in their own right
they should merely be a conduit for money to flow around, not take a cut off it every time, imagine canals, letting water and goods flow from a to b, we dont need no private banking, all we need is electronic accounts to hold and pass money around, this could be done through a not for profit operated web based company
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lets get the bank on their needs, lets all take our money out, zero percent interest, id rather keep it under me bed!
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WhenI first started work in 1964, most people were paid in cash.
(in a little brown envelope – anyone remember?) and so
VERY few people had bamk accounts.
Maybe that is what we should go back to.
Banks have FAR TOO much influence on people.
Current accounts, credit/debit cards, direct debit (direct debit = the scourge of our times – FAR TOO many companies insist on payment by this method).
It’s all gone way too far in favour of the banks – and it needs to change – FAST.
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“let’s take all our money out” is a coomon cry these days – that’ll teach the banks won’t it – but wait, I think the problem is that people have been lending more than they can possibly pay back, overdrafts, loans, credit cards – so most banks have people owing them money – most people have nothing to take out – so taking out nothing won’t teach them a thing.
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I know, I know – the people borrow, the banks lend – forgive me – my point remains.
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banks are supposed to provide a service and they are not, so what are they hiding?.if they are hiding nothing take all your cash out and sue.
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LONG PRISON SENTENCES FOR BANKING FRAUD….THEN OTHER BANKERS WILL BE AFRAID TO COMMITT FRAUD.
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