Labour Press
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City Link - letter from Chuka Umunna to Vince Cable
Chuka Umunna MP , Labour’s Shadow Business Secretary, has today written to Vince Cable to seek clarity on unanswered questions which have emerged relating to City Link.
The full text of the letter is below:
The Rt Hon Vince Cable MP
Secretary of State for Business, Innovation and Skills
1 Victoria Street
London
SW1H 0ETMonday 29 December 2014
Dear Vince,
I am writing to you with regard to City Link Group (“City Link”) entering into administration.
I am sure you will share my concern at the way the firm’s 2,727 staff learned at Christmas that they may face redundancy, and you will agree that all efforts should be made to see if the firm can be rescued so that as many jobs can be saved as possible.
Therefore, I would be grateful if you could provide clarity on questions which have emerged in relation to City Link’s administration in the past few days:
- Speaking to BBC Radio 4’s Today programme this morning, Jon Moulton, the founder of Better Capital PCC Limited - the ultimate owner of City Link - said that your department (“BIS”) had been informed of the situation facing City Link “some days” before 24 December when it went into administration but that no request for a meeting with City Link was made by any BIS official or minister at that point. Can you confirm when BIS was first made aware of the situation facing City Link and what action was taken to prepare for the possibility of the firm going into administration? For example, was contact made with the Department for Work & Pensions to ensure local Jobcentre Plus offices could provide immediate support to employees in the event of redundancies being made over the Christmas period; and why was no meeting with the firm sought?
- According to media reports, you have agreed to meet with representatives of City Link employees after in the New Year. However, given that we have now learned that redundancies are due to be made imminently, will you undertake to bring this meeting forward to take place in advance of redundancies being made and, preferably, within the next 24 hours? We understand that no direct contact has been made by any BIS minister or official with the principal representatives of the employees involved. Can you explain why this is the case given the seriousness of this situation and the numbers of jobs involved?
- Given that taxpayers’ money is set to be used to meet statutory redundancy payments in the event that the business cannot be rescued, can you explain what action ministers and officials are taking to assist in brokering a rescue package? Has any contact been made with EY, the Administrators of City Link, with this in mind?
- As many of City Link’s staff were engaged on a self-employed basis, what steps will you take to ensure that their specific circumstances are taken into consideration and that they are provided with necessary support in the days and weeks ahead?
Given the strong public interest in this case, I am making a copy of this letter available to the media.
Yours sincerely,
Chuka Umunna MP
Shadow Secretary of State for Business, Innovation and Skills
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