Failed county firm ‘refused help’, says MP
Wednesday 1st April 2009, 2:45PM BST.
A 27-year-old south Shropshire engineering company which has gone into receivership was refused help by the Government, a county MP has claimed.
Philip Dunne spoke out over Technorton Ltd.
The Tory said bosses at the firm, in his Ludlow constituency, had tried to access a government loan scheme for weeks, but were denied cash.
Mr Dunne told ministers in the Commons yesterday: “The scheme is much trumpeted by the Chancellor (Alistair Darling) as one of the few that actually work.
“But when the directors applied for it they were told that funding would be available only if they first put in personal guarantees.
“They had already exhausted those by backing the business, so they looked to the Government for help.
“None was available, hence the business is now in administration,” he added.
A total of 10 people have been made redundant at Technorton, in Coder Road, Ludlow Business Park.
Bosses were in talks with Barringtons of Newcastle-under-Lyme earlier this week, which is expected to be appointed as official receivers.
The £1.3 billion Enterprise Finance Guarantee scheme is designed to help small firms during the recession to access the working capital and investment they need. Decisions on whether or not to approve guarantees are fully delegated to participating lenders.
Stephen Timms, Financial Secretary to the Treasury, said the Government had taken “decisive action” to bring “real help” to families and businesses.
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Whilst Brown fiddles, our economy burns.
He is busking to all the rich people at the G20 in the hope one of them might throw him a crust.
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They only wanted a small loan not a massive bail out like the Banks
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So to sum up
1) The poor working class employee’s of construction companies are left unemployed after the Government refuses to bail outgood hardworking companies
2) Upper class rich employee’s of banks keep jobs after a bailout from the Government.
In conclusion the Government looks after its own members of society
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SUCH A SHAME WE NEED MORE ENGINEERING AND LESS FINANCIAL ENGINEERING
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Never mind!
Gordons smiling!
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So, if I understand this correctly, the directors did not offer personal guarantees but they expected the govenment to underwrite their enterprise. Why is the government being critised here?
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Its so sad, surely the government owned banks could lend money to any one with a sound recovery plan, its only going to be a year or so this recession (touch wood) and so why let a good firm go bust – we’ll need them when the economy picks up again in 2010
I guess at least we dont have the ‘do nothing’ laissez faire cons, it would be far worse under them lot
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…and how much are they spending on the G20 summit? Do they really need to be putting on a grand dinner for the leaders’ wives – guests include Naomi Campbell
You would have thought that with millions worldwide losing their jobs that the great and good would have set an example by exercising a little austerity (like our MPs!!!!!!).
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ita good our conservative MP is hightlighting the failings of the Labour controlled banks, we need to cut taxes and get out of the EU NOW to solve this crisis
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Wishful thinking Don and very naive. We will be paying back these astronomical loans that the Labourites have got us into for the next 40 odd years. Where do you get a year from, Darling’s propaganda no doubt.
Each of us in this country, man, woman and child (and their are over 60 million of us) owe in the order of £20,000 each in Government borrowings. All down to Mr. Clown’s prudence and “no more boom and bust”.
It was “laissez faire” Labourite policies for banking that got us into this mess. You believe your own “year or so” if you wish, the rest of us with our feet on the ground will still be wishing it’s affects would end many years from now.
I hope Clown wins the next election, we are already a basket case under him, perhaps if he gets back in, the basket will start to rot and the truth will dawn on the naive and gullible at last.
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