21/05/10 - Chris Kelly MP visits Ventilation & Environmental Supplies in Netherton & calls for action on bad debts

Chris Kelly MP has called for action on what he calls business crimes. Having visited local firm Ventilation and Environmental Supplies based in Netherton, Mr Kelly is appalled that some businesses run up a large amount of credit with suppliers and then go out of business owing local firms like V&ES thousands of pounds and then start up in business again within days, often with the same company directors.

Mr Kelly said: “Whilst visiting Ventilation and Environmental Supplies I was told that, in the last year, 10 customers had gone bust. Out of these 10 one went out of business due to the way the firm had been run, one went out of business due to bad debts but eight went bust and then started back up shortly afterwards.”

Mr Kelly added: “This highly dubious practice is a clear case of business crime and is totally immoral but, up until now, the Department for Business, Innovation and Skills haven’t taken it seriously due to the relatively small amounts that are owed each company. These amounts of £5,000 and under can make or break local firms in the current climate.”

Finally Mr Kelly said: “I want small and medium sized companies here in Dudley South to be in a position to take on another three people each. Companies haven’t been recruiting at the rate we need them to for renewed growth in our economy. Firms that are owed money should be helped to receive what they are owed. This will enable them to re-invest in their businesses which will result in more jobs for local people. The economic recovery has to be led by private sector growth - the new Government led by David Cameron will be doing all it can to foster growth and encourage business confidence.”

Mr Kelly was greeted at V&ES by Nigel Haywood, owner & Managing Director.