Industry news
Labour MP wants loophole closed
Posted Thu, 09 Feb 2012
A Labour MP has called for a loophole to be closed that allows companies under investigation for health and safety breaches to force themselves into liquidation.
Luciana Berger, Labour MP for Liverpool Wavertree, said health and safety inspectors should be given the ability to freeze the assets of companies who are under investigation. This would prevent them from going into insolvency.
At present, a legal loophole allows companies under investigation because one of their workers has been seriously injured or killed, to liquidate. This then means that the courts can only impose a fraction of the total fine, before the liquidated company later reforms under a slightly different name.
The MP has support from Labour colleagues for her Health and Safety (Amendment) proposal, which has received an unopposed second reading but it is unlikely to proceed much further due to a lack of parliamentary time.
Last year 50 people were killed as a result of workplace accidents. Luciana Berger said: "We have a responsibility to the families and friends who have lost loved ones to close this loophole."